The housing market crisis during the COVID pandemic has created alternative housing solutions such as extended stay hotels as an attractive choice over traditional rentals to accommodate the increasing needs created by relocation, travel, changing homes with gaps in housing needs such as waiting to get out of a lease agreement. To seize the opportunity, some hotels started to offer more flexible choices to behave extended hotel stay. Thus offering many advantages over a short-term lease which requires a credit check. The agreement needs to be signed with added payment of the first and last month rent as a security deposit.
Another economic factor is the ability to make a mortgage payment. There were more than 10 million of these mortgages were outstanding with a total debt of more than $2.4 trillion. As recently as early 2018, 25% of all delinquent borrowers nationwide had not made a mortgage payment in at least five years. In New York State, New Jersey, and Washington, D.C., that percentage was more than 40%.
Choosing a long term hotel stay is as simple as presenting a debit or credit card. You can simply check-in and out freely into the hotel, no condominium fees, no cleaning fees, no security fees, no utility bills, electricity, Internet cable, no TV bills, there will be provided furniture, in-home kitchens, housekeeping services, laundry rooms, gym, swimming pool, towels, washcloth, vending machine, linen change, and free parking.
The need for alternative cheaper short term housing with long term hotel stay has definitely increased with relocation, medical travel, in cases of displacement due to storm, hurricane, flood, fire, storm or damage to their usual living location and provide a shelter during or after recovery.
Small landlords have been devastated by lockdowns as results of the latest survey published by the National Association of Independent Landlords (NAIL) revealed that the percentage of respondents who received a full rent payment from their tenants plunged to 55% in June from 83% in February. Almost 20% had vacant rental properties due to COVID-19.
Other groups may also benefit from this extended hotel stay option include medical professionals, corporate businesses, students, government personnel, construction workers, and tourists with choices being either one bed or two-bedroom suites. While national rent prices went up from an average of $ 1577 /month in January 2019 to $1651 in June 2019. In 2020 there was a significant increase in one bed-room rent studio ( 49.3% increase in Sacramento, Ca) while during the COVID-19 pandemic, there has been emptying out in Brooklyn and Los Angeles simply because people could not afford the rent and being threatened with eviction due to nonpayment!
There are at least 15 million properties owned by these small landlords nationwide. Many were in precarious financial situations even before the lockdown.
According to HUD’s July 2020 “Neighborhood Watch” report, 17% of 8 million insured mortgages are now delinquent. This percentage includes mortgages in forbearance as well as those not in forbearance. Hard-hit metropolitan areas include New York City with 27.2%, Miami with 24.4%, and Atlanta with 21%.
For all of the previously mentioned reasons accelerated by the COVID-19 pandemic and its associated adverse effects on the economy and housing prices, it is expected that long term stays in hotels will be an attractive option for many middle-class Americans and thus would make an excellent sense of having an additional benefit to clients and a marketing edge for the hotels that offer long term stay to have on-site clinics to care for them especially during the pandemic, provide non-covid care as well and help triage patients by doing testing and contact tracing to assess the best way of providing medical services in a safe and convenient way!
- Dr. Adel Eldin, MD, FACC, FACP, MBA, GGA
- Board Certified Cardiologist
- Founder, CEO
- Affordable Quality Healthcare Program
- Founder, CEO
- Wesley Chapel, Florida
- Tel: 877-DR ELDIN