I’m thinking of using my rental as a sober living house

23 Replies

Hi Everyone, I was wondering if anyone has experience with using your rental property as a halfway house for companies such as “oxford house”. I was talking with them and they pay fair market rent plus a significant premium $ on top of the monthly rent. It sounds like it could be a good idea. What’s your thoughts? Thanks 

Originally posted by @Cameron Davis :

Hi Everyone, I was wondering if anyone has experience with using your rental property as a halfway house for companies such as “oxford house”. I was talking with them and they pay fair market rent plus a significant premium $ on top of the monthly rent. It sounds like it could be a good idea. What’s your thoughts? Thanks 

 Am I to assume that by using a company such as oxford house you are not involved in the day to day?

@Cameron Davis It is a noble effort but it has unique challenges you may not be ready for ! If one of those guys relapses and cooks meth it will be really bad and not only will everyone have to leave but you won’t ever be able to sell the place atleast not for fair market values . Had that happen in my town here . NIce 100k house sold for 25k because of the stigma and history of it in the area

Wow that’s crazy. I can see that. I really appreciate the feedback @denism. What would you recommend that I could dabble in the get the most out of my 4 bedroom home. I’m experienced with tradition single family rentals but I’m leaning towards something that could even be state sponsored or anything that could pay out a premium for my monthly rental. Thanks 

I might start by calling  my insurance agent and asking how this will affect my culpability, not to mention rates. And then call the city to see if this is even allowed where your house is located. 

I know this sounds very negative, but I can tell you there are VERY few success stories. Mostly just people looking for handouts so they don't have to work. I know, it sounds rewarding at first, but it ends up downright depressing. If someone is serious about getting off of drugs and alcohol they just do it. 

Especially Heroin. Those guys are as good as dead. There is such a low success rate of getting off that stuff, it just don't happen. 

We deal with this on a regular basis in the Hood were we invest. 100% talk, zero action. 

Where are you thinking about buying, Cameron? I think it's a great idea. Make sure you feel comfortable with the lease terms in case someone does need to be evicted and review the policies of Oxford House or anyone else you might rent to. With the right oversight, I imagine you'd have less to worry about renting to clean and sober living organization. The people who live there typically sign strict lifestyle contracts that state they have to leave immediately if they don't follow it.

Don't know it. You should understand who is placed in a halfway house in the first place. Here's a secret; it's not the guys trying to get clean.

Most of the replies are completely untrue. There are some plenty of people that are legitimately trying to stay sober and benefit from the camaraderie of living with others in a similar spot. Here area few thoughts.

1. Hire a sober house manager who has significant clean time. Recovering addicts will listen to someone who has been in their shoes and is knowledgeable. You can offer free rent in exchange for specific duties.

2. You have to drug test and these are expensive. Factor it in to your costs.

3. Demand they find work within a specific time period unless they are unable due to mental or physical disability. They need to be recievinf governmental assistance in this case and make them volunteer if unable to work.

4. Make them attend 3-5 12 step meetings a week and have them provide documentation similar to the courts.

5. Charge weekly instead of monthly. Eg if you charge 1300 a month for 3 bedroom charge 150 weekly and fill 4 beds (1 room for sober house manager) = $2400 gross. 

Originally posted by @Mitchell Lyle :

Most of the replies are completely untrue. There are some plenty of people that are legitimately trying to stay sober and benefit from the camaraderie of living with others in a similar spot. Here area few thoughts.

1. Hire a sober house manager who has significant clean time. Recovering addicts will listen to someone who has been in their shoes and is knowledgeable. You can offer free rent in exchange for specific duties.

2. You have to drug test and these are expensive. Factor it in to your costs.

3. Demand they find work within a specific time period unless they are unable due to mental or physical disability. They need to be recievinf governmental assistance in this case and make them volunteer if unable to work.

4. Make them attend 3-5 12 step meetings a week and have them provide documentation similar to the courts.

5. Charge weekly instead of monthly. Eg if you charge 1300 a month for 3 bedroom charge 150 weekly and fill 4 beds (1 room for sober house manager) = $2400 gross. 

 That's a tough way to make a living man.

@Mitchell Lyle Your post correlates with the information that I received from attending  a Sober Housing Certification program  .It can be a rewarding niche for the right investor. I am looking for a partner to get started .    There's a couple of people who may be willing to mentor me , if I stay in Massachusetts.

@Cameron Davis If you took the training, NAR-National Assoc. of Recovery Residences, you would be able to screen a sober house operator or start your own.

To the guy who stated “especially heroin those guys are as good as dead... and we deal with this in the hood all the time“ etc etc....

I work in the substance abuse and mental heath treatment field. I was compelled to create an account to chime in and say a few words. That stigmatic mindset and ignorant attitude is a huge part of the problem we have here in this country.

I lost my younger brother to a heroin fueled suicide. We come from a nice upper class chicago suburban family. You’re quick to judge until it’s on your doorstep, Which can happen at absolutely any time. YOU and YOUR loved ones, are not immune, my friend... and I truly hope you can open your eyes to this.

Sober living is a vital resource for people trying to recover. It offers structure and accountability that is MORE than difficult to adhere to when someone struggling to stay sober is left to their own devices in their old environment. All the while their BRAIN is recovering- which can scientifically take upwards of an entire year before it’s completely ‘healed.’ Shame on you.

To the OP- I may be a little late in response... but your idea to bring an oxford house to the community is wonderful. Are there risks and is it hard work? Absolutely. But nothing worth having or achieving is easy.

@Cameron Davis did you eventually execute on the Oxford home? I'm currently looking at doing the same thing. except buying one that already exists. Wanted to hear what you went through. Pros and cons if you could share.

BLECCCHHH!

Some idiot that was inexperienced at BRRR got in over his head(upside down) and resorted to leasing to a soberhouse operator across the street from my parents nice SFR in an affluent neighborhood....first the friends and ex-dealers come hang around the house, but, they are not allowed inside, so they all hang outside on the stoop or just down the street, if that's in front of your 80 year old parents house, too F'ing bad!!!...I hope you like smokers, because they all smoke like chimneys and have no regard for flicking butts on your property....eventually my parents went on a trip and of course the sober house people had a perfect view of them loading up their luggage, and what ya know after 25 years of not a single crime...they were burglarized, by a homeless junky ******* that was friends of one of the residents or was a previous resident....The sober house operators were ******** and not cooperative....their are more than a few of their patients were loud obnoxious gang banger types, giving the hard stares and intimidation types of attitude.


Lastly.... on more a general note... the affordable health care act made some seriously horrible changes to the way insurance can deal with addictions....it used to be that their was a limit to how many sober claims a patient could make, and then the insurance company turned off the tap....now, a patient can relapse as much as they want and the insurance has to allow them back into another sober program...it essentially incentivizes the sober programs to fail, because it assures them a steady flow of repeat customers.

Lastly, I found the few sober house operators that I came into contact with, during this time, to be vile phony insurance fraudsters and street urchins, acting like their title made them actual healthcare providers.

Just my 2c...and sincerest apologies to the 10%(if that) of the industry that are a really providing a quality and ethical service.