Renting to Group Home for persons with disabilities

[Sendil Thangavelu]

Hello,

I have a rental property in Marion County, Florida. I was approached by a tenant who says they are licensed to run a Group Home for persons  with Disabilities. I have never rented my property  for such  a use. Has anyone had experience doing this type of lease?  CAn you pls share your experience?

1) What are legal considerations that I need to include in lease agreement?

2) What are insurance and liability considerations?

3) What are the pros and cons  of leasing to a Group Home for persons with disabilities?

Thank You

Sendil

[Colleen F.]

@Sendil Thangavelu is it a staffed home, unstaffed?  what kind of disability?  Is your property suitable for the disabled? You have your insurance But I believe the business also needs insurance.  I haven't done it but you really need to know what group of disablled persons he is talking about what level of supervision. Cars,  no cars? how many cars if you have staffing? what modifications do they want to do if there are people who are mobility impaired.

[Sendil Thangavelu]

Quote from @Colleen F.:

@Sendil Thangavelu is it a staffed home, unstaffed?  what kind of disability?  Is your property suitable for the disabled? You have your insurance But I believe the business also needs insurance.  I haven't done it but you really need to know what group of disablled persons he is talking about what level of supervision. Cars,  no cars? how many cars if you have staffing? what modifications do they want to do if there are people who are mobility impaired.

Good questions, I will find out, thanks Colleen.

[Alecia Loveless]

@Sendil Thangavelu Definitely do your research. I worked for a company for 8 years in a home that was for developmentally disabled adult men. What the company didn’t say was that they were all sex offenders (mostly with kids) who couldn’t be convicted because of their handicap status.

These were mostly pretty high functioning offenders who just had slightly lower IQs and in some cases likely were just poor test takers in school.

This home is located close to an elementary school because technically the offenders aren’t convicted.

Just do your research.

[John Mocker]

Sendil,

1. Lease agreement:  I would recommend you draft this with a lawyer familiar with the industry, ADA, Commercial leases, etc.

2, Insurance:  Review the new potential use with your agent.  Does your policy still meet the underwriting guidelines with the new use.  If not, what would the cost be to cover the use as a group home

3. Pros/Cons:   

 - do you need to make structural changes to meet the ADA, zoning, or fire code for the new use ( ie ramps, wider doorways, accessible bathrooms, etc 

[Olivia Grabka]

@Sendil Thangavelu

You should issue a master lease to the company, transfer all requirements & liability for the operations to them. This will create a situation where all you are responsible for is owning the property and the master tenant assumes responsibility for everything else.

My partner has this arrangement.

[Sendil Thangavelu]

Quote from @Alecia Loveless:

@Sendil Thangavelu Definitely do your research. I worked for a company for 8 years in a home that was for developmentally disabled adult men. What the company didn’t say was that they were all sex offenders (mostly with kids) who couldn’t be convicted because of their handicap status.

These were mostly pretty high functioning offenders who just had slightly lower IQs and in some cases likely were just poor test takers in school.

This home is located close to an elementary school because technically the offenders aren’t convicted.

Just do your research.

 Thanks Alecia. Will do

[Sendil Thangavelu]

Quote from @John Mocker:

Sendil,

1. Lease agreement:  I would recommend you draft this with a lawyer familiar with the industry, ADA, Commercial leases, etc.

2, Insurance:  Review the new potential use with your agent.  Does your policy still meet the underwriting guidelines with the new use.  If not, what would the cost be to cover the use as a group home

3. Pros/Cons:   

 - do you need to make structural changes to meet the ADA, zoning, or fire code for the new use ( ie ramps, wider doorways, accessible bathrooms, etc 

 Thanks John

Thanks Alecia. Will do

Thanks Alecia. Will do

[Sendil Thangavelu]

Quote from @Olivia Grabka:

@Sendil Thangavelu

You should issue a master lease to the company, transfer all requirements & liability for the operations to them. This will create a situation where all you are responsible for is owning the property and the master tenant assumes responsibility for everything else.

My partner has this arrangement.

 Thanks Olivia. I searched on rocketlawyer.com  for master lease template, but could not find one. Any suggestions?

[Olivia Grabka]

@Sendil Thangavelu

Message me; I have a template somewhere.