Assisted Senior Living Facilities, Special Needs Adult Independent Living, or So

[Matthew Defore]

BP and Rich Dad podcasts have been vocal about this niche. If you found the ideal property for this type of niche, what would be your first step in seeking out a business operator who would rent the property from you for any of the above purposes? (senior assisted living, special needs adults, or halfway house)

To clarify, I want to be only a landlord and lease to an operator who runs ____ business.

Does anyone here have experience in that?

[Bart Van Leijsen]

Matthew,

It is really important to vet multiple operators for this asset type. This has been a struggling asset class that is still seeing a lingering impact from the pandemic. It depends on the market you are looking at as well. Some markets are doing very well and some markets are struggling to keep occupancy up. 

What I have been seeing is that the operator is key for a successful project. Which sounds cliché but is the reality of senior housing projects. They are dealing with more lease turnover caused by deaths of residents, high labor expenses for different levels of care (IL / AL / MC), as well as finding employees that want to do this work.