This article provides context for site search and selection. This is the first step in the process of finding a home.
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Article Table of Contents
Related Articles: The Process of Opening a New Sober Living Home
Background
Site Selection
- 🔎 Area Survey *
- 🏠 Site Search - 📍 you are here
- 🔎 Initial Site Inspection
- 📊 Potential Site Analysis
Planting a New Home
*These specific articles are not available to the public. 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.
Choosing the right location for a sober house is crucial to its success. A good location should be in a quiet and safe neighborhood, away from high-risk areas that could trigger substance abuse or violence. It should be close to public transportation and have easy access to healthcare facilities, grocery stores, and other amenities.
Location Tips:
- Try to look for potential locations within 30 minutes of where you live
- Look for communities with populations of greater than 10,000
- Look for communities close to referral sources
- Look for communities which support recovery and provide support services
Location Recommendations
To be most effective, sober living homes should be situated in locations that provide:
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Safe and supportive neighborhoods: A safe, quiet, and stable neighborhood with a low crime rate is essential to foster a sense of security and well-being for residents.
- Proximity to the Operator: Try to look for homes close to you and your team. Being close by will allow you to visit the home more frequently and address issues quicker.
- Proximity to referral sources: A successful sober living home will be located close to organizations which refer to sober living.
- Size of community: Focus on populated areas with population of at least 10,000.
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Proximity to support resources: Access to public transportation, 12-step meetings, medical care, mental health services, and job training or educational opportunities is crucial to support residents in their recovery journey.
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Distance from triggers: It's helpful to avoid areas with a high concentration of bars, liquor stores, or other environments that may trigger cravings or temptations for residents in recovery.
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Community acceptance: A location where the local community understands and supports the mission of sober living homes is vital. Community acceptance can minimize potential stigmatization or discrimination faced by residents and promote a healthy reintegration into society.
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Reasonable cost of living: Affordability is an important factor, as sober living homes should provide an accessible option for individuals from various socioeconomic backgrounds.
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Access to recreational and leisure activities: Proximity to parks, gyms, libraries, and other recreational facilities can help residents engage in healthy, constructive activities during their free time.
By selecting a location that meets these criteria, sober living homes can provide an optimal environment for individuals in recovery to maintain their sobriety and successfully transition back into their daily lives.
Area Survey
We strongly recommend conducting a thorough and strategic Area Survey. This survey should analyze the referral and support environment in the community, and provide information on the types and quality of potential referral sources. We offer a comprehensive guide on this topic in our Area Survey article.
*Read More: 🔎 Area Survey
*Note: our Area Survey guide is not available to the public at this time. While we try to offer as many resources as possible to the public, our Area Survey guide 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.
Should I Lease or Buy a Home?
One of the first decisions an Operator must make is if they want to lease or purchase a home. Most Operators chose to lease homes, and of those who chose to lease, the vast majority chose to lease a home from a Vanderburgh House affiliate. Regardless of the structure, Vanderburgh House exists to help Operators realize their vision--so let's get to work!
Structuring a lease or purchase is complicated and requires experts who are very familiar with this field. Leasing a home without a properly-structured lease could open an Operator up to significant liability.
In most cases, we work hand-in-hand with Operators to find and acquire property, most often through a lease from an affiliated impact-focused real estate developer.
Leasing a Home
Most Operators chose to lease homes from a Vanderburgh House affiliated impact-focused realty company. Leasing provides many benefits over purchasing a home, and is our recommended structure. The most common type of lease for a typical home would be a modified gross lease, but there are other lease types. Review all leases with a qualified attorney to ensure that you are protected in the event of sale or other change with the landlord.
Leasing a Home from a Vanderburgh House affiliate:
- ✔️ Leasing a home requires far less money up-front
- ✔️ Signing a lease can be done much quicker than a purchase
- ✔️ Vanderburgh House affiliate leases include all furniture and appliances
- ✔️ Vanderburgh House affiliate leases obligate the property owner to be responsible for providing a home which is in compliance with NARR, federal, state, and local code standards
- ✔️ Leasing a home significantly reduces risk to the Operator, including:
- Costs to repair or replace major building systems, often unexpectedly
- Risk of changes in building code requirements, including:
- Installation of fire sprinkler systems
- Installation of a monitored fire alarm systems
- ✔️ If you chose to sell your business, leases are often fully transferrable
- ❌ Leases are for limited terms and may not always offer simple renewals
- Vanderburgh House affiliate leases offer automatic renewals
- ❌ A lease may not allow for major alterations without your landlord's consent
- ❌ A lease does not convey ownership to a property
Lease Types
Gross Lease: A lease in which the tenant pays a fixed rental amount for the duration of the lease and the landlord pays the expenses associated with owning the property such as taxes, insurance, and utilities.
Modified Gross Lease: A lease in which the tenant pays a fixed rental amount as well as all utilities and the landlord pays for real estate taxes and property insurance. Vanderburgh House affiliate leases are modified gross leases.
Net Lease: A lease in which the tenant pays in addition to rent, the maintenance and operating expenses such as real estate taxes, insurance premiums, etc.
Triple-Net Lease: A lease in which the tenant pays, in addition to rent, all expenses related to the operation of the property.
⚠️ Leasing from a Third Party
If you chose to lease from a third party, we recommend that you protect yourself from several risks relating to your occupancy. The owner may sell the property and the new owner may have plans without you in mind. The city or town may change zoning or the owner change building use, which could cause concern for your business if the landlord is unprepared to address them.
We recommend you negotiate for the landlord to absorb the maintenance of critical equipment, air conditioners, heating units and overall plumbing. If you are responsible for any cooling or heating maintenance, get a service contract with a reputable air conditioner/heating/plumbing repair company. Vanderburgh House affiliated leases provide for these protections.
Operators must comply with all federal, state, and local laws, rules and regulations, and must obtain any and all permits, zoning variances, certificates, or licenses necessary for the full and proper conduct of their business. This means that you are responsible for obtaining a building permit and meeting fire safety rules in your jurisdiction. The City may require you to change the use of the building for building code purposes, even if you are exempt from zoning restrictions. The City or State may also wish to impose fire-safety rules, such as requiring installation of a sprinkler system, that are not imposed on single family houses.
If you work with a third-party landlord, you should consider working with an attorney to negotiate with the City to see if you can obtain a reasonable accommodation to some or all of these requirements, if they are imposed. Even if you do not obtain an attorney, you should try to obtain clarity from the City as to what they will require for you to operate your house. Remember, an important factor in City decision making is the voice of constituents. If neighbors at a proposed site are supportive the City is more likely to be open to working with you to get the house open. This does not mean that the City will not seek to impose onerous requirements in some cases. However, the support of residents, public health agencies, or other well-connected groups in the community, as well as the help of a good attorney, will make it easier to work with the City towards a solution to most problems.
Buying a Home
Some Operators chose to purchase a home. This is far less frequent than leasing a home.
Buying a Home:
- ✔️ Owning a home means you can do what you want, when you want to do it
- ✔️ Owning a home allows you to build equity in not just your business, but in the property as well
- ❌ Purchasing a home can be very expensive
- ❌ Obtaining a loan to purchase property to use for sober living is very difficult
- ❌ Owning a home will require the Operator to be responsible for:
- Real estate taxes and assessments - and their increases
- Property insurance, specifically covering this type of building use
- Capital improvements
- ❌ Operators who own their own homes are at increased risk for:
- Operational issues turning into legal claims attaching the property
- Changes in interest rates
- Costs to repair major building systems (see above)
- Risks of changes in building code (see above)
Conducting a Site Search with Vanderburgh Sober Living
At this point, you should have determined where you will locate your home and have an idea of the referral environment and local recovery community. Site selection begins when you are ready to proceed. This section of the guide details the process for conducting a site search with Vanderburgh House. This search structure would apply regardless if our Operator is looking to lease or buy.
This will likely require the use of a local real estate agent working alongside you in the search for a suitable home or homes. We will work with you to identify a real estate professional that you want to work with. If you plan on leasing a home from an affiliate, the real estate agent will sign a contract with Vanderburgh House. We will work collaboratively to look through listings and book showings. Agents should be selected based on the following criteria:
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Familiarity with local market, network of sellers and other agents, ability to get off-market deals
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Familiarity with non-conventional real estate (i.e. commercial, non-profit, special-use, etc.)
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Interest in working with Vanderburgh House to help source properties to buy or lease
The agent we wish to engage should sign a non-disclosure agreement prior to having our search criteria, business model, or other proprietary information shared with them. If asked, we may be willing to sign an exclusivity agreement with the agent.
Our New Home Search Memo is a document which details the “101” of our home search. It covers what we do, how we operate, and our pricing and operational approach to the real estate that we will acquire. Following signing an NDA, this document should be thoroughly reviewed with the selected agent and referred to and updated frequently during our real estate search process.
Real estate agent interview topics:
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Office location
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Home location and office location
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Brokerage
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Experience in the field (i.e. years, location(s), commercial/residential)
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Experience sourcing/soliciting
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Typical deals
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Lease to purchase thoughts
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Network/Resources
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Confidentiality
Property Profile
The property should have ample space for residents, staff, and common areas, such as a living room, kitchen, and outdoor space. It is important to consider local zoning laws and regulations to ensure that the property can be used as a sober house. Additionally, it is crucial to establish positive relationships with the local community to gain their support and trust.
Neighborhoods
The neighborhood is one of the most important factors to consider when siting a home. The neighborhood must be “safe” and a “good” area. This is understandably subjective however we cannot open homes in areas which have known drug problems.
Zoning, Building Use
Individuals in recovery from drug and alcohol addiction enjoy some protection under the Americans with Disabilities Act and Fair Housing Act, as well as Massachusetts law. For this reason, a home can often be located in any zone which permits residential use for either single or multi-family homes. Every case is different, and you should always work with local counsel to ensure that protections for the disabled are properly applied if and when the City makes a zoning decision regarding your Home.
Size
We look for very large homes with a minimum of 2,500 square feet of living space, with preference for 3,500 square feet or larger. We have operated homes in 7,000 square feet with great success. This square footage can include finished attics and basements, or spaces which can be finished into living space.
Parking
We have no minimum parking requirements. Often, homes without parking are able to be purchased for far lower cost and are ultimately very attractive to us.
Finding Properties
We’ve found a few successful strategies which may be used. We can purchase homes or lease homes with an option to purchase them.
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Search for homes for on MLS, Zillow, Craigslist, and other sources.
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Search for large, old homes which have been on the market for a long time – introduce the idea of a purchase contract for cash with a fast closing, or a lease with a purchase to take place in 12 months.
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Networking with socially conscious organizations (non-profits, faith-based organizations) to see if they are aware of anyone with real estate that fits our needs, and would be willing to make the world a bit better by working with us to open homes.