Minneapolis, MN · Member since 2013 · 32 posts · 9 votes
I have been contacted by a home care company that operates senior assisted living care homes. They are interested in renting my house long term to use as an assisted living home for 4 residents. They have been in business for 5 years and have this same business going in another home across town. I contacted my city licensing office and was told the only licensing requirement on my end is that my home be licensed with the city as a rental home (the city i live requires all landlord's to have their rental properties licensed with them). The home care company is responsible for all the other type of licensing beyond that. I checked out their state license and found no issues with them Basically, they would be using my home soley as a home to take care of their clients. I'm wondering if any other landlord's have allowed their rental homes to be used for this purpose? Any thoughts would be helpful. Thanks in advance.
Investor · Erie, PA · Member since 2014 · 128 posts · 65 votes
10y
@KENDRA J. I have been doing that on a SFH I purchased with the original intent to make it into student housing for a medical school nearby. It has been one of my best as far as callback for maintenance. I renovated the unit by replacing 32 inch doors to 36 inch and redid the bath so caregivers could nearly enter the shower area along with a wheel chair. I signed a 6 year lease and will soon be entering year 3. I would do as many of these as I could but the company is now focusing out of my Market area.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
My most recent purchase (9/30) was being used as a group home. I believe it is basically the same as what you described. The home was terribly abused. It took a LOT of money to repair after they moved out. This might have been partly due to two things: an out of state owner, and a property manager that I believe was absentee. I don't think they had a clue as to how badly the property was taken care of. DISASTER AND NASTY would be good descriptions. No matter your choice, SOMEONE must regularly inspect to make sure your property is not being abused. It can cost thousands to repair damage done by a bad tenant....and it did cost me quite a bit more than anticipated.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
p.s.---you might need a commercial insurance policy. I was told I did if the current tenant stayed there. They moved out which is a good thing considering they were destroying the property.
Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
10y
@KENDRA J. Yes. This could be a very good opportunity for you. I specialize in this type of tenant. You want the company to be on the lease and you want to be paid by that company, electronically if at all possible. If you treat them right they could be there for many years. Let me know if you have any questions, I would be happy to help.