Residential Care Homes

Jo Dirt · Jun 25, 2006

I have been considering the exact same thing you have, a residential home for the aged. I know a nurse who runs one. She charges $1200 per month per resident for shared room, and I think about $1900-2000 for a private room. This rent includes meals, med supervision, bathing assistance, laundry, and light housekeeping.

I am still in the planning stages (I have a husband who doesn't think this will be a good idea--I think he realizes you are really chained to the business and he wants to be a "free spirit"...whatever) but I have determined that in order to make a fair living this means operating with as little debt as possible, which means either owning your business or being able to pay it off rather quickly.

The nurse I know who runs her business has 15 residents and is about bankrupt, and she doesn't even hire licensed personell. Paying employees will eat up a lot of the income. Food is another big expense. Preparing the food takes a lot of time, three meals a day plus snacks. The electric and water bills will probably be pretty hefty.

I'm sure I'm not thinking of a lot of things. Keep us posted with your progress.

micheleg1 · Jun 25, 2006

I have been considering the exact same thing you have, a residential home for the aged. I know a nurse who runs one. She charges $1200 per month per resident for shared room, and I think about $1900-2000 for a private room. This rent includes meals, med supervision, bathing assistance, laundry, and light housekeeping.

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Where is this nurse located?

The services sound about the same, but I am also willing to take total care clients as well.

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I am still in the planning stages (I have a husband who doesn't think this will be a good idea--I think he realizes you are really chained to the business and he wants to be a "free spirit"...whatever) but I have determined that in order to make a fair living this means operating with as little debt as possible, which means either owning your business or being able to pay it off rather quickly.

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Anyone that wants their own business will get a lot of negative feedback, especially from family members. Don't let that stop you! If you feel confident that you can do the job then don't let anyone else hold you back.

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The nurse I know who runs her business has 15 residents and is about bankrupt, and she doesn't even hire licensed personell. Paying employees will eat up a lot of the income. Food is another big expense. Preparing the food takes a lot of time, three meals a day plus snacks. The electric and water bills will probably be pretty hefty.

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That's too many I think. I want to keep it small and private pay. That alone will save a lot. I am looking for three max, hopefully all the beds stay full! I plan on a nice home-type of place with a good size common living room and dining room, etc., 2-3 baths, and about 4 bedrooms. I plan to start at $1,295 monthly for a semi-private room, $1,500 for a private room - for assisted living and basic supervision clients. For total care I plan to charge $1,500 and $1,750 respectively, all with a first and last month's payment required on or before moving in.

Provide games, movies, Bingo, etc., provide for special occasions, easy gardening projects for those that can participate, etc.

I plan to have two PRN employees since I will do the job myself most of the time. When you start hiring regular employees you then have all the taxes, and they can kill a business fast. Also worker's compensation, insurance, and all the rest that goes along with it.

A potential problem is if someone stops paying - and will not move the client somewhere else. I would check with the Ombudsman in your area. If they don't have the answers they can direct you to someone that will be able to help you. I certainly wouldn't throw them out on the street alone! I imagined they would be assigned a guardian and they would move them or arrange for payment.

I hate to think about caring for my people and the money aspect at the same time. As a business person you must, or you will not have a business for long.

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I'm sure I'm not thinking of a lot of things. Keep us posted with your progress.

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Hopefully I have given you some helpful information. Better to know right away than finding out the hard way. When you open your own business you have to be informed as much as possible. No one can know everything until it happens, but being prepared goes a long way in being successful.

The Small Business Administration has a lot of good information, forms, sample business plans, and a lot more. Their URL is http://www.sbaonline.sba.gov/

I hope you look into it. I think it's one of the best ways to work and be at home. I am a hermit/homebody so I know it is perfect for me.

Keep me posted on your progress also. :idea:

Michele

weetziebat · Jun 25, 2006

I really don't know details, but my friend, who has a huge house in the country, decided to open her home to MR/DD clients. She choose to limit it to 3 or 4 clients.

I don't know if there are differences in the state laws, but she had to do an outrageous amount of remodeling - doors wide enough for wheelchairs, sprinkler system, all kinds of fire regulations. It costs them a small fortune and was frustrating and nerve-wracking having social workers etc. come in for inspections.

Her husband (although initially all for it) has changed his mind because of what has already been mentioned - they are chained to the house, and he gets really tired of having clients follow him all over the house, asking questions.

Sorry, realize this sounds negative, and I don't mean it that way. She enjoys it and I have another friend who does the same thing, so she can stay at home with her young son, and she loves it.

I wouldn't like sharing my home, no matter how big. Nor would I want to feel 'on duty' 24/7. But that is the beauty of nursing - so many different areas for all us individuals out there.

Best of luck to you. I can understand being tired of being the employee. Let us know how things work out.

HarryHK · Jun 26, 2006

"A potential problem is if someone stops paying - and will not move the client somewhere else."

A good contract and a credit check should help with this.

Jo Dirt · Jun 26, 2006

"A potential problem is if someone stops paying - and will not move the client somewhere else."
A good contract and a credit check should help with this.

Yes, you are essentially a landlord as well. I've got a big heart but I don't think I would have a lot of trouble seeing a nonpaying resident is "transferred" somewhere else.

The more I look into it, though, the less it seems like a way to make money, seems like it would be hard to break even with this kind of business. But for the right person who isn't really in it for profit it could be a good business. I am not thinking this would work for me because #1 there is no way I could share my house. I am very private #2 they would need 24 hr supervision and since I wouldn't be living there any profits would be eaten by hiring help.