Anyone ever rented out home for Adult family home use?

Question

My daughter has just started her real estate investment journey. She currently has her 5 bedroom home for rent and was approached by someone wanting to rent it for an Adult Family Home. Anyone have experience with these? What questions should she ask? Does this increase her liability exposure? Can she ask more for rent, due to the higher wear and tear on the property? Other suggestions? Thanks

Rey Orinion · Answer

@Mariam Zinn So, if i am going to lease my home(4 bds) to a provider, how much I should charge for rent? Is there a liability on my part as a landlord in the event of an accident..i.e. like falls, eating inadiment objects as you described?

Mariam Zinn · Answer

I own an Adult Family home in Washington and I am getting ready to sell.  I am always shocked at how little is known about my industry. Yes the seem High Per Bed, How There is significant investment in such a business like any business we must be profitable or parish.  www.paths-afh.com My highes rates are are based on Need/ not greed.

Historically my business was  Grossing 540K this was before life change for my family

How can one little place make that income you might ask.

Income Business model.  if you were to take average of $8000 a month in our micro-community we are licensed for 6 Beds

2012:

Actually this is 6 beds 2 at 263.01 day rate =$8000 x2 -heavy Care total dependant (2 person transfer etc)243.28 day rate= $ $7400 x2 moderate heavy Care (one person transfer )$223.56 day rate = $ 6800 x2 moderate care (hands on assistance)In addition spare room converted to temp. spouse / renter boarder $7200 @ $1200 mo x 6 moThese figures were 2012 so if room rates across facility raised $3.29 a day for inflation adjustment that's x6 =$7200 Businiss modle: Admission fee paid to Afh -allows for third party add on services such as assessment /delagations to be encompassed as well as additional pt hours for activities companion to help ease resident into home with out taking time from other residents. There is also annual inflation clause of 5% on clients anniversary of admit.There is a nominal fee when transferring onto hospice (allows for more pt caregiver hours that first couple of weeks-while admin coordinates residents needs-spends time with hospice team and family meetings) From that always 1 caregiver on shif and one pt for when provider left home . Ensuring 2 people on staff 24/7If you have questions I would be more than happy to help.It is up to each and every provider what our business model looks like:We as providers bring our own skills and experience into that business model when I say experience I mean both care experience and business. What spacific type of clients we serve -i.e. this home is Dementia Specialty and serves those with medical complexity and or behaviors. What level of service we offer What external services will be offered to attract and retain clients What fixtures & furnishing will home offer What type of staff will work with our clients What source of funding will home accept What price set is for services you offer. If you are unhappy with afh P & L's There are classes at local community colleges for business - nutrition -marketing these enhance your business as well as geriatrics at UW. I would urge providers to take a class or attend seminars perhaps someone like  could put together a seminar for providers to examine business models. Example. $8000 per month sound high However break it down High rate heavy Care is 2 staff 24 hours a day What's 2 people 24 hours a day worth? MATH:$8000 ÷ month = $263.01 day ÷ 24 hours =$10:96 an hour to care for monitor ensure safety of loved ones wellbeing So for $10.96an hour we will care for your perhaps difficult challenging behavior loved one$10.96 is a 2 person transfer or elopement risk. We will house them in a very nice home, feed them very very well with specialty diets as needed and always with estetic appeal, we will bath them, dress them , toilet or change them,. Feed them take care of needs such as catheter -colostomy Joey pumps feeding tubes etc. We will make every effort to make each day the best it can be. We will take care of social needs, hair nails and appearance beyond basic hygiene make up hair polish mani & pedi.We will do our pt/ot available everyday as prescribed or at a minimum sit & be fit or if applicable active / passive ROM as well as hobbies activities and coordinate spiritual care. We will make sure thier safty as best as anyone can fall risks, eating inadiment objects etc. We will Monitor health conditions alert medical professionals when needed, we escort individual with or without family to doctor appointments and offer guidance as nessesary while encompassing multiple disaplines of expertise to ensure this person and families wellbeing.Afh offers so much and the intimate environment staff ratio is unsurpassed and allows for socializing vs staying at home alone with 1 on one caregiver (how much is a one to one caregiver? And let's not forget if elderly stay home with a caregiver there's still isolation and the cost of running a home taxes utilities groceries etc)That's what families get for $10.96 an hour I have no problem marketing this.

Viktor Kholodyuk · Answer

Excellent question Rey. I’m in the same predicament, I’m not sure how much to charge, what type of insurance I should get, what modifications are required to pass state/county inspection (are there inspections?). Appreciate all your help.

Account Closed · Answer

Adult family home means a place where 3 or 4 adults not related to the licensee reside in which care, treatment or services above the level of room and board, but not including nursing care, are provided to persons residing in the home as a primary function of the place except that it does not mean a place described in ...Aug 13, 2015

Debbie Arnold · Answer

Thanks for the responses. She's going to meet with the prospective tenant today.

Robert M. · Answer

@Debbie Arnold

I am currently renting a SFH to an organization that places seniors (3)  on medicaid into the home. They are provided with a 24/7 attendant and meals.

At their request, I modified the home for wheelchair accessibility, including widening doors, installing ramp, changing door knobs to door levers, and a major bathroom renovation including a huge wheel in shower ( nearly a wet room).

I was able to raise the rent to amortize all the improvements during the term of the 6 year lease.

Happy with the arrangement. Let me know if you have any questions.

Debbie Arnold · Answer

The ones I'm aware of offer staff assistance to non-related adults in a home setting. Some include nursing care. Often times an alternative to nursing homes, depending on the level of care the individual needs.

Jeff Morelock · Answer

If you're talking about assisted living facilities, there is quite a bit of money to be made, but there are also licensing issues and a lot of hoops to jump through. Most states will require modifications to the house for use and accessibility.

Anyone ever rented out home for Adult family home use?

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