There had been local objections to the plans for Tudor Lodge, on the corner of Turner Street and Cleveland Street, in Redcar.
But they were recommended for approval by Redcar and Cleveland Council planning officers and members of its regulatory committee voted unanimously to go along with their advice.
The town centre property currently has 16 bedrooms with the application received by the council being for eight self-contained apartments – six one-bed flats and two two-bed flats.
Six written representations were received by the local authority with concerns being raised about potential anti-social behaviour and one objection describing how the street was “rammed with flats and bedsits, drug dealers and scumbags robbing cars and littering”.
Another said anti-social behaviour in the neighbourhood had “increased several fold” due to transitory tenants in two houses of multiple occupation and many nearby bedsits, who brought with them alcohol and drugs issues.
There were also concerns about whether there was sufficient car parking – the property being in a residents parking zone.
A report said the popularity of flat conversions in central Redcar was well-established and the size of the building meant it would be unsuitable for other types of housing, such as a family home.
It said there would be no external alterations to the existing building.
Referring to neighbourhood amenity impacts, the report said: “Objections have been received from neighbouring occupiers concerned the area is saturated with similar developments.
“They have concerns about the potential problems the future occupiers might bring in terms of safety and security. The concerns from the neighbouring properties in terms of proposed use are noted, however the building already has a residential use, albeit of a more temporary nature.
“Ultimately, when granting planning permission the local authority has no control on who lives in properties.”
It added: “It is considered the impact of additional residential dwellings within an existing residential area will not have a sufficiently detrimental impact on neighbouring amenity to warrant refusal of the application.”