Group Home in Michigan

[Lily Wang]

Hello, 

I'm approached by a group home operator in the area about renting my property at the listing price. My impression was that the rent for the aforementioned purpose would be significantly higher than the market rent, as much as 30%-50% more according to a post I've read on here. What have some of your experiences been? 

Also, would we be signing a commercial lease instead of residential? What stipulations would be typically included? How much additional in insurance would I be expected to pay on the property with the lessee operating a business out of it? For those familiar with Michigan laws, is there a maximum of 6 residents for such homes or does the cap apply to licensed facilities only? 

I'd appreciate any helpful info from the community in advance. 

Lily