You Need a License For Your Group Home, Right??

19 Aug 2019 by brandon B">Admin

You Need a License For Your Group Home, Right??

WRONG!

This is one of the hardest things for many new FREE 10 PART COURSE members to wrap their head around.

“Why don’t I need a license for my Group Home? Every high priced consultant, lawyer and the secretary at the county office have all told me the same thing! I need to fill out this form, pay that fee, do this upgrade, schedule this inspection, and it will take 6 months to a year to complete”

The following is an example I use for our FREE 10 PART COURSE members that can’t understand how you can just open a Group Home without a license:

Picture this scenario….

Imagine you had a home with a spare bedroom you wanted to rent…

Now imagine you found the perfect tenant. He is 57 years old. He needs a nurse to stop by 3x a week to administer medicine. He uses an in home nurse for this. As a bonus, he gets an SSI check every month…so that’s a GUARANTEED payment every month!

1) Would you need to fill out an application with your local government in order to house this gentleman?

2) Do you need permission from the local health department?

3) Need to become a licensed nurse so you can personally administer his medicine?

4) Would you need to become an Employer and hire a nurse to do this?

OF COURSE NOT

Can there be issues?

Complaints? Of Course!

Let’s say you live in a brand new section of town. All of your neighbors are young, hip millenials who love to socialize. Could they be upset that you have a house filled with old people? Sure!

Could you imagine them bringing this to a court? Could they? Of course!

Do you think they would win?? Of course NOT!

You are protected by the Federal Fair Housing Act!

Many many local governments, city councils, etc. have tried to BAN “Group Homes”. Check out THIS recent article from Southern California. In it, they detail an unlicensed “Sober Home” (another type of Group Home) in a nice neighborhood. Unfortunately, one of the tenants robbed a neighbor. Now the neighbors are in an uproar! They DEMAND the government to protect them and REQUIRE these people to get licensed and regulated!

I understand where they are coming from…but do you really think they have a case? Will the city set this precedent? So if I have a rental property….would I need to decline all housing applicants if they’ve used drugs or alcohol before? More than likely, the Federal Fair Housing Act will be upheld, like all other suits of this nature before.

Check out some excerpts from the article to highlight my points….and keep in mind this is in CALIFORNIA…not exactly a state known for being business friendly and small-government-minded:

“Those numbers don’t include hundreds of other ancillary businesses, sober living homes. Those are the unlicensed but often PROFITABLE HOUSES (emphasis from GHR) used by recovering addicts as a place to live while they launch, in theory, substance-free lives.

In a country with more than 20 million drug or alcohol addicts – and a still growing opioid crisis – there’s little doubt that rehab centers and sober living homes could offer something essential.”

The article tries to cast these homes in a bad light, but they pretty much prove why these types of homes are necessary! Not everyone can afford to live in one of these licensed facilities for $5000 per month! And notice our highlight…often PROFITABLE HOUSES. Just how profitable can they be?

I checked a few “Sober Living” homes on Craigslist in this area and they seem to go for around $1000/month for “semi-private” bedrooms. This means Roommates. So that means each bedroom is bringing in $2000 per month. That’s $8000 total revenue on a 4-bedroom home. Now think of what happens when you get larger, 5-7 bed homes….or when you start converting garages!

See the power of this business! There’s definitely advantages and disadvantages if you wanted to go through the licensing process. But you don’t HAVE to! This is one of the biggest misconceptions about this industry!

Ready to get started and have your home filled in the next 30 – 60 days? Sign up for your FREE 10 PART COURSE today!!