Alternatives to regular long term rentals, Sober Living or Group Homes?

Question

I currently own a few properties here in Bryan-College Station, I have a full time sales job so try to stay as passive as possible. This is why I haven't done STR or anything. I'm currently only cash flowing about $100-$200/month/property and exploring maybe some other ways to get more cash flow. Does anybody have experience with sober living, or group home operators renting your home? If so, how was the experience, profit, and how did you find them?

Alecia Loveless · Answer

@Seth Williams I work in the group home industry. If you decide to pursue this option be sure to EXPLICITLY spell out how the maintenance of the buildings will be handled as these types of facilities tend to be hard on property from my experience.

I’d think long and hard about this and possibly set up financial parameters for who is responsible. For instance tenant responsibility for up to $500, $1000, whatever in repairs before landlord responsibility kicks in.

I’ve worked for some group home providers where they employ a maintenance worker who handles some of these issues (usually if the have multiple homes in a specific geographic location) and I’ve worked for homes where the handiest employee fixes things and that option doesn’t always have the best outcomes.

Where I’m working now has been through 3 dishwashers in the past 12 months (8 bedrooms). Now that the 3rd one is on the fritz they’re 8 weeks into waiting for service under the warranty. If there was a landlord I could see them demanding a 3rd new one because it’s a state requirement. To comply they’re using plastic utensils and paper dishes. Seems penny-wise and pound foolish. But would be an issue for a landlord.

Seth Williams · Answer

Hey Bryant! Just accepted and would love to connect with them. Thank you!

Bryant Xavier · Answer

Hey, Seth!

Fellow investor and realtor in the B/CS area. Have a client that does sober living homes here in B/CS. Would be happy to intro you two. Sending you a connect request