Does It Make Sense to Live in a Hotel?
We tend to think of hotels as quirky places to hang out while on vacation, but historically they weren’t always just for short stays. As early as the 1870s , residential hotels in New York served as a permanent address for families and single men who could not afford their own servants; according to the New York Times, the practice grew in popularity (and prestige) in the 1920s with easy money until the Great Depression saw it decline. However, the residential hotel has never completely disappeared – and in the current housing crisis, it may even be seen as a viable alternative to signing a lease. times faster than revenues , with the national median rent recently surpassing $2,000 for the first time . These dire circumstances have led some to consider an illogical solution: staying in a hotel permanently . And there are actually several good reasons to consider this option if you’re having trouble finding affordable housing, but only if saving money isn’t your primary motivation.
Not all hotels allow guests
The first thing to find out is if you have the opportunity at all. Not all hotels or hotel chains are ready for the idea of permanent residence. If you search online, you will find that most hotel websites limit bookings to 28 days.
One thing you should never do under any circumstances is book a hotel room and simply refuse to leave. Even if you pay per night, if a hotel has a permanent resident policy, they will eventually kick you out, and it’s a lot easier for a hotel to evict you than a regular landlord. If you plan to stay full time, you will first need to check with the hotel.
You can avoid some embarrassment by aiming for what is known as an “extended stay” hotel. These hotels offer apartment-style suites designed for extended stays, and since their entire business model is geared towards returning guests, this is the easiest and safest option.
In addition, there are motels, which generally offer fewer niceties and amenities than hotels and have been the last resort for the working poor for decades. If you can’t collect a security deposit and/or your credit score is crap, renting an apartment is often not an option, but an extended motel stay is an option if you can cover the overnight rent. Most motels will let you stay as long as you keep paying your bills, and like hotels, there are specialty long-stay motels like Extended Stay America or Studio 6 Motel 6 . Depending on the location, these extended stay motels can be significantly cheaper than a hotel.
How much does it cost to stay in a hotel?
Hotel room prices go up and down daily depending on what’s going on in the area, general demand and other factors. Right now , the average cost of a hotel room in the US is about $200 per night , which works out to roughly $6,000 per month. Prices for accommodation in extended stay hotels typically range from $5,200 to $7,200 per month. This is clearly above the average rent even in cities with a high cost of living. Motels are a lot less fancy and a lot more affordable, with motel rates ranging from $45 to $100 (or more) depending on location, and extended stay motel rates ranging from $90 to $125 per night, with the overall lodging range in a motel ranges from $1,350 to $3,750 per month). But be aware that lower rates will be found in locations in more undesirable areas, as motels tend to be located next to major roads and away from city centers.
Pros and cons of living in a hotel
While motels can sometimes be a relatively cheap lodging option, the financial benefits of permanent residence in a hotel/motel come from their flexibility (typically: no rent, no security deposit, and no credit check; you’re all set as long as you have a valid payment method, including cash) and amenities included.
Even staying in a modest motel means you don’t have to pay separate bills for electricity, water, heat, and probably even TV and internet. The room will be cleaned regularly, you will receive free toiletries and sheets and towels will be washed and replaced. You will also often receive free local calls. In many hotels, you can also look forward to using the gym included in your stay, free coffee and tea, and maybe even free breakfast each morning. That’s a lot of things you don’t pay on top of the rent for, so while you may end up paying a monthly fee that matches or exceeds your area’s rent, you can save some money depending on what it covers.
On the other hand, staying in a hotel/motel has many disadvantages:
- Storage. Hotel rooms are not designed to store a lot of things. You will definitely have to shorten your life or invest in a storage solution which will impact your budget.
- Aesthetics. Finding an inexpensive hotel room for an extended stay probably means it won’t look like a fancy resort. You’ll likely have to put up with worn-out furniture and boring interior design, and the limits on what you can do to personalize a space are even greater than when renting.
- There is no real kitchen. Most regular motel and hotel rooms do not have a place to cook food, with the possible exception of a microwave and a refrigerator for drinks ( not to be confused with a mini-fridge ). Most hotels and motels for longer stays have kitchenettes, but they may not be very large or well equipped.
- There is no sense of community. It is almost impossible to have any kind of relationship with the neighbors in the hotel, because there is a high probability that they will leave in a few days. Living in a constant state of impermanence is psychologically damaging.
bottom line
Staying permanently in a hotel or motel won’t be much cheaper than renting an apartment in your area, and may even be more expensive, but you can still save on margin given the amenities included. If you are having difficulty finding or renting an apartment, an extended stay hotel or motel may be a viable solution.