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Renting to Sober Home Operators - How to Vet, What to Charge
Hello everyone,
This Sarah Msuya from Real Estate Rookie Episode 399! My partner Amanda Salovitch (Rookie EP # 207) and I just bought a lodging home. When construction is complete it will be an 18 unit (some rooms with shared bathroom, some full apartments).
Instead of dealing with 18 separate tenants, we have decided to rent to one operator - sober home, group home etc.
We are trying to figure out how to price this and how to vet the operators - specifically for sober home and similar facilities (we already do DSP and understand that well).
We have a sober home operator who is interested. Some residents pay privately, others use General Assistance, and some have some state assistance. They get about $681 a bed and we estimate they can fit 40 beds. I'm sure they have some overhead. Would $15K a month sound about right?
If you currently operate something like this please reach out - thank you!