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Things You Need To Know About Starting a Group Home


Studies show that community-based homes or “group homes”  — small, residential facilities designed to serve small groups of individuals with disabilities — can lead to increases in adaptive behavior, productivity, community integration and level of independence.


It’s like starting any other business.
The first thing you’ll need is a detailed business plan. Include details on projected expenses and revenue, annual budgets, annual occupancy rate targets, operational and marketing plans, and all legal or financial requirements. In many cases, starting a group home may mean becoming a registered provider with your state and meeting a variety of licensing requirements.


Starting a group home can require creative financing.
As with any small business, getting a group home up and running requires a significant investment. Providers who pursue sale-leaseback financing can capture the full market value of their real estate and use these funds to fuel their growth. Leases are highly customized to meet a provider operational goals. Depending on your situation, becoming a registered provider with the state will give you access to numerous benefits and resources.


It takes passion.
While our country’s growing elderly population will create a growing demand for smaller, more home-like family settings for seniors in the U.S., don’t expect that starting a community-based home to be an easy way to “get rich quick”. Operating a residential care home involves long hours, significant expense and plenty of frustration, so it’s best to get into the business for nothing other than a passion for helping vulnerable people.


Location is key.
Just like in any real estate transaction, it all comes down to location, location, location. You will need to review local and state requirements for a community-based home and keep in mind that only certain areas are legally zoned for this type of home.


You can’t do this alone.
No matter how big your group home will be, a staff is necessary. You’ll need to hire caregivers, housekeepers, food specialists, and admissions coordinators. Keep in mind that the group home industry often has high staff turnover due to the nature of the work.


You’ll want to make it feel like home.
A community-based residential environment is intended to simulate a typical family life as much as possible. People who live in these environments have more choices and control over their lives, have more friendships, are engaged in their communities, are safer, and experience greater life satisfaction. Scioto Properties can help to purchase or build a property that fits the specific needs of the individuals your home will serve, with modifications such as wide hallways, lower countertops, ramps, and rails.