This article addresses the process of opening a new recovery home, from A to Z!
↖️ Return to 📘 Foundation category
🔒 Are you being asked to log in to view certain content?
Some of our articles are private to Chartered Operators only. If you would like access to this content, please reach out to a member of our staff. We will grant access to most content upon request.
Article Table of Contents
- 💡 Background on New Recovery Homes
- 🏠 Site Search & Analysis
- 🤝 Receiving your VSL Charter
Related Articles on Opening a Recovery Home
The steps below detail the overall process of opening a new home. Much of this information is written for our Chartered Operators, but most of the content is broadly applicable to all Operators regardless of their affiliation with VSL.
Background
- 🎉 Opening a Recovery Home - 📍 you are here
Site Selection
Engaging with Vanderburgh Sober Living
- 🤝 Charter Membership: An Overview
- 🏡 Recovery Residence Model
- ⭐ Operator Duties Quick Reference Guide
Planting a New Home *
*These specific articles are not available to the public at this time. While we try to offer as many resources as possible to the public, this content contains privileged information and is only available to Operators who are members of our community. Want to join our community? Apply today at www.vanderburghcommunities.com.
💡 Background on New Recovery Homes
💭 Are you sure you want to do this?
Before opening a sober house, it is important to answer several foundational questions to ensure success. These questions include identifying the target population, understanding the legal and regulatory requirements in the state or jurisdiction where the sober house will be located, assessing the financial viability of the project, identifying the appropriate level of staffing, determining the types of services to be offered, establishing admission criteria and screening procedures, creating policies and procedures, and establishing relationships with community resources such as healthcare providers, employment services, and other supportive organizations. Additionally, the operator should have a clear understanding of the principles of recovery and be committed to providing a safe and supportive environment for residents.
Why do you want to do this?
Before you embark on the journey of opening a sober house, it's important to ask yourself why you want to do it. Is it because you have a personal experience with addiction or know someone who does? Is it because you have a passion for helping others and want to make a difference in your community? Whatever your reasons, make sure they align with your values and goals, and that you are committed to seeing this through.
Have you done your research?
Opening a sober house is not something you can just jump into without doing your due diligence. You need to research the laws and regulations in your state, understand the needs of the population you will be serving, and identify the resources you will need to make it successful. This might involve talking to other sober house operators, attending community meetings, and consulting with legal and financial professionals.
How much time are you prepared to invest?
Running a sober house is not easy. It requires a significant investment of time, energy, and resources to ensure that residents are safe and supported. You will need to be available to your guests and House Mentor(s), deal with emergencies as they arise, and manage the day-to-day operations of the house. Make sure you have a realistic understanding of how much time you can commit to this endeavor before taking the plunge.
💲 Financial Considerations
There are various costs associated with starting a sober house, including property acquisition or leasing costs, property renovation or remodeling costs, licensing and permit fees, insurance costs, utilities, furniture and equipment costs, staff salaries and benefits, marketing and advertising costs, and ongoing maintenance and repair costs. Additionally, if the sober house will provide additional services such as therapy or transportation, there may be additional costs associated with hiring professionals or obtaining vehicles. It's important to carefully budget and plan for these expenses to ensure the success and sustainability of the sober house.
Up-Front Costs
Costs associated with starting a sober house can vary greatly depending on the location, size, and condition of the property. Some potential costs include the down payment, mortgage payments, property taxes, insurance, utilities, repairs and maintenance, landscaping, and snow removal. In addition, if the property needs renovations to meet local building and fire codes, there may be additional costs for permits, construction, and inspections. It's important to factor in all of these costs when considering the financial feasibility of starting a sober house.
Your real estate costs are probably going to be the largest costs you will face. Read more in Site Search Guide. Real estate costs not only include lease payments, but in many cases will require costs to furnish the home including appliances, costs to inspect the home to verify present condition, and costs to create a two scale floor plan and compliance with NARR 3.0 (for the purposes of preparing an emergency evacuation procedure).
Leasing a home from a VSL affiliate will include most of these costs. All homes leased from affiliates include:
- Furnishings and appliances
- Full site inspection and maintenance plan
- Full interior floor plan and exit plan
Do you have funding?
If you are planning to start a sober house, it is essential to have a reliable source of funding. Starting a sober house can be expensive, and costs can quickly add up, including real estate costs, licensing fees, insurance premiums, staff salaries, and other operational expenses. It is crucial to have a solid financial plan in place before starting your sober house. You may consider seeking funding from investors, grants, or loans from financial institutions. It is important to have a realistic budget and to carefully track your expenses to ensure that you are staying within your means.
If you are not prepared to make an investment at this time, we have opportunities to earn your way to owning your own sober living home! Learn more about becoming a Contract Operator by reaching out to community@vanderburghhouse.com
🏠 Site Search & Analysis
🏠 Site Search
When opening a sober house, choosing the right location and property is crucial to its success. A good location should be safe, quiet, and in close proximity to public transportation, healthcare facilities, and other amenities. We recommends conducting an area survey to determine the need for a sober house in the community and to gather information on other local sober living homes and rates.
Site search is one of our core strengths. We work with Operators and conduct area surveys on their behalf so we can work together to find a suitable location. In most cases we connect with impact-focused real estate developers to provide real estate.
Learn more: 🏠 Site Search Guide
🔎 Initial Site Inspection
This document serves as a set of instructions for conducting an initial property inspection. This is generally the first tour or showing of a property and is completed prior to a comprehensive property inspection.
Working with Vanderburgh House allows you to access our team of facility experts. Work with us to thoroughly inspect potential homes to ensure you are in good shape.
Learn more: 🔎 Initial Site Inspection Guide
📊 Potential Site Analysis
To evaluate the feasibility of a potential sober house, there are several steps to follow. Data should be gathered about the potential home, including bed capacity, utility estimates, etc. Once this data has been collected, it can be analyzed using the Sober House Financial Calculator, which can help determine the viability of the location based on projected expenses and revenue. It's important to carefully review the financial calculations and consider any potential risks before moving forward with the property.
Our analysis tools have been carefully developed since our founding in 2016. Our data models leverage the experience of having run homes across the United States. Our Sober House Financial Calculator is a valuable (and free) tool for helping analyze potential homes and produce a projected income and expense statement, along with estimating startup costs.
Learn more: 📊 Potential Site Analysis
🤝 Receiving your VSL Charter
Our charitable mission is to be a catalyst for recovery-focused sober living communities. We believe access to positive communities for men and women in recovery will save lives, rebuild families, and greatly improve society. Our organization supports and provides resources to sober living home operators and maintains an active membership organization for independent sober living operators.
- 💜 Introduction, Mission, and Vision: Learn about our mission and vision
- 🤝 Charter Membership: An Overview: Explore becoming a Chartered Operator with VSL
- ⭐ Operator Duties Quick Reference Guide: Discover what it takes to be an Operator
🏡 Home Leasing Opportunities
VSL helps to address the critical challenge of real estate acquisition in sober living by connecting our Chartered Operators with impact-focused real estate investors. We streamline property leasing and remove the complexities of purchasing and renovation, ensuring operators can focus on their mission of recovery and community upliftment.
- Efficiently connect operators with suitable properties in our network
- Gain valuable resources and information to support growth
- Guarantee properties meet rigorous quality and certification standards
- Work with investors who do not require initial security deposits
- Collaborate with vision-aligned investors to build a better world.
Ready to bypass the challenges of real estate and make a difference? Partner with VSL to unlock mission-driven real estate opportunities and comprehensive support. Let's build the future of sober living together.
Learn more: 🏡 Home Leasing Opportunities
🏠 Planting a New Sober Living Home
This section references articles which are only accessibly by our Operators. Want to join our community? Apply today at www.vanderburghcommunities.com.
Have you established your business?
Before diving into the details, it's crucial to understand the importance of establishing your sober living home as a proper business. This ensures you're legally protected, financially organized, and operating within regulations.
Forming a legal entity, such as a limited liability company (LLC), is an essential step for any potential Operator looking to start a sober house. Forming an LLC provides the Operator with a separate legal entity, which helps to protect their personal assets from any potential liabilities that may arise from running the business.
1. Forming a Legal Entity
- Business Entity Creation: Decide on a business structure such as a sole proprietorship, partnership, LLC, or corporation.
- Obtain an EIN (Employer Identification Number): It's a number the IRS gives to businesses for taxes and hiring.
- DBA (Doing Business As): If you want a different name for your business than the official one, get a DBA.
2. Forming a Business Bank Account
- Why: It's essential to keep your business and personal money separate.
- What you'll need: Business papers, EIN, and ID.
- Pick a Good Bank: Find banks with beneficial services for businesses.
3. Selecting a CPA (Certified Public Accountant)
- What CPAs do: They help with finances, taxes, and business rules.
- Find a Good Fit: Ensure the CPA is familiar with small businesses and recovery homes.
- Work Well Together: Building a strong relationship with your CPA is vital for your business's financial health.
Learn more: 📜 Business Entity Management
✔️ New Home Checklist
Congratulations! You have a home prepared and ready to open! Are you ready? This process should start about 60 days before the day you plan to open. While we work together to open your new home, be sure that you are on top of your responsibilities.
Learn more: ✔️ New Home Checklist
📝 Planning for a New Home
The article provides a guide for Operators to plan for opening a new home. It covers various aspects such as building a team, outreach efforts, setting up home policies, developing a resource database, setting a budget, and scheduling check-in meetings. It suggests building a team with core leadership, including a house mentor, CPA, and maintenance staff. The article also discusses how to handle phone screens and intake policies. It recommends developing a resource database by reviewing local recovery resources and creating marketing materials. Additionally, the article provides a timeline for achieving occupancy goals and suggests allocating a budget for outreach and marketing efforts.
Learn more: 📝 Planning for a New Home
🏡 Setting Up a New Home
You're almost open! The article provides a list of standard contract services to be established and provided for the benefit of the residents, which includes internet, television, phone, utilities, rubbish services, landscaping and snow removal, pest services, and security services. It also lists the physical setup required, such as a sign-in area, television area, computer station, and laundry area, and provides a certification plan and checklist for compliance with home standards. Additionally, it includes a list of recommended and optional items for the home, as well as an initial drug screen order and emergency plan, which are to be determined.