Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
im considering renting some property to assisted living businesses, anyone have any experience with this? i see some upsides in preventing evictions/ higher rents. any info would be helpful
Irvine, CA · Member since 2014 · 12 posts · 3 votes
12y
Is the AL living business a healthcare operator? If so, I would look into their qualifications - What is their background? What other facilities do they manage?
Is this a private pay facility or is there Medicare/Medicaid reimbursements? Is the operator licensed?
It has been my experience that the performance of these types of properties is heavily affected by the healthcare operator running the day to day functions. If they have a proven track record (10+ years of experience) and manage several properties without significant problems, I would seriously consider it.
Once you identify other properties they manage, you can do some due diligence here:
Irvine, CA · Member since 2014 · 12 posts · 3 votes
12y
Is the AL living business a healthcare operator? If so, I would look into their qualifications - What is their background? What other facilities do they manage?
Is this a private pay facility or is there Medicare/Medicaid reimbursements? Is the operator licensed?
It has been my experience that the performance of these types of properties is heavily affected by the healthcare operator running the day to day functions. If they have a proven track record (10+ years of experience) and manage several properties without significant problems, I would seriously consider it.
Once you identify other properties they manage, you can do some due diligence here:
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Good point, then you can look to state requirements.
As Brett alluded to, AL operations are much more than RE. If health care is provided on site, asking means you're over your head with the idea.
There are different levels of assistance, you can simply rent to an individual you receives day care assistance from outside servicers, then you may have special needs with an onsite live-in who may or may not need special training or licensing, depends on the client, then you can get into nursing activities that require a trained, qualified staff and special building and zoning requirements, such are usually highly political due to several factors, competition, community needs assessments, health program acceptance and specialties of care. It's another industry.
At the landlord level, consider a group home environment. Lease the property that needs no special requirements other than ADA type issues to a care provider such as your local mental health association affiliate or possibly a drug rehab or ambulatory clients. Lease to the organization and let them take care of the occupancy issues.
Might search for "making money in non-profits" as I believe we touched on these aspects and working with community organizations.
Trying to break into assisted health care living today is no arena for anyone without a health care background, deep pockets and compliance experience. :)
Real Estate Investor · Boston, MA · Member since 2013 · 108 posts · 71 votes
12y
Completely agree with @Account Closed 's comment about the operator. Typically the operator would master-lease the real estate, then fit out and rent up the space as needed. Can be a nice deal for the owner, but having a solid, experienced operator is the key to making it work.