Assisted Senior Living /Adult foster Home

[Joseph Nguyen]

Has anybody ever done this?

Was listening to a Tax Podcast talking about potentially doing this via residential housing. Would be smaller in scale, less residents per caregiver (better quality of care), and less headache in terms of turnover (would not be considered an eviction). 

Some other things to consider would be liability insurance, max occupancy in the property, staffing.
Any insight would be appreciated!

[Jasper K Juhl]

Hey @Joseph Nguyen,

I’ve got some firsthand experience on this, especially in the context of residential real estate investments. What you’re describing, often called Residential Assisted Living (RAL), can definitely be a lucrative and rewarding strategy if done correctly. It's becoming more popular for investors because of the increasing demand for senior care and the fact that you can provide a more personalized and higher-quality living experience compared to larger facilities.

Here are a few key insights to keep in mind:

1. Regulations and Zoning: Each state has its own set of regulations for assisted living. It’s critical to understand what your state allows, especially around occupancy limits and caregiver-to-resident ratios. Some areas are more lenient, while others can be pretty strict, especially in residential zones.
2. Liability Insurance: This is a must, and it’s different from typical landlord insurance. You’ll want specialized coverage that accounts for the fact that residents are receiving medical or custodial care on your property. Make sure the policy covers not only accidents on the premises but also any potential caregiver liability.
3. Staffing: Staffing can be both your biggest challenge and your greatest asset. Finding caregivers who are not only qualified but also compassionate is essential. Lower turnover means happier residents, but it can also translate into less operational stress for you.
4. Max Occupancy: The size of the home and local regulations will determine how many residents you can house. Some investors opt for larger homes with more bedrooms, while others convert existing residential properties to fit more people comfortably, ensuring they meet safety and accessibility standards.

One thing to consider—smaller operations like RAL often rely on word of mouth and local reputation to fill rooms, so community engagement and relationships with local health care providers are key to success.

PS: Fun fact—by 2030, it’s projected that more than 20% of the U.S. population will be over the age of 65, which makes senior housing a high-demand sector for decades to come.  Definitely something worth exploring if you're thinking long-term!

Let me know if you want more info on specifics!

Best,
Jasper Juhl