Renting To Group Homes

[TMahoney]

I have been approached by a woman who operates group homes that look after mentally ill patients recently released from institutions such as Alberta Hospital. They can stay in these group homes for up to 6 years and as little as a few months. There is always someone working in the house to insure their safety, take care of their meals, etc.. She wants to take over both the upstairs and downstairs suites (which are currently undergoing major renovations). When told she would have to pay the amounts I was asking for each of the units, she was fine with that. Can anyone see any potential problems with this rental? Are there special zoning requirements needed? Should I be concerned with the reactions of the neighborhood? Has anyone had any experience in this regard? I`m thinking this would be a great way to have a long term tenant looking after both suites, paying me $2275/month (not including the garage), and not a lot of hassles! Or, am I being too naive?

 

[jarrettvaughan]

QUOTE (TMahoney @ Feb 27 2008, 10:25 PM) I have been approached by a woman who operates group homes that look after mentally ill patients recently released from institutions such as Alberta Hospital. They can stay in these group homes for up to 6 years and as little as a few months. There is always someone working in the house to insure their safety, take care of their meals, etc.. She wants to take over both the upstairs and downstairs suites (which are currently undergoing major renovations). When told she would have to pay the amounts I was asking for each of the units, she was fine with that. Can anyone see any potential problems with this rental? Are there special zoning requirements needed? Should I be concerned with the reactions of the neighborhood? Has anyone had any experience in this regard? I`m thinking this would be a great way to have a long term tenant looking after both suites, paying me $2275/month (not including the garage), and not a lot of hassles! Or, am I being too naive?

I have not rented any of my suites in this situation but have considered it. I have a good friend who works with people who are mentally challenged (very diffrent from mentally ill) and she has been telling me to buy a house and rent to the society that she works for. They offer long term renters, the place must be (health and safety standard) kept in immaculate shape so the society is very motivated to do its own repairs and clean the house daily. They have a supervisor on site 24hrs a day and are willing to pay high rents for the right house. Lastly, you have the benifit of know that you are helping the community.

 

[HeatherBrandt]

There was an issue in the last year in Red Deer. There was a group home for (I think) teenagers (I believe for those with drug problems). A neighbour found out it was a group home and complained to the city as the area was not zoned for it. The city decided they would let it carry on temporarily while the city addressed the issue of the zoning. My impression is that the city was going to allow the change in zoning because they felt this was a worthwhile endeavour and didn`t want to shut the group home down. I believe the situation was helped along by the MLA who has worked very hard to help parents of teenagers with drug problems to get help.

Check the zoning, this could be worth your while. As a health professional and a landlord, I know how many people have nowhere to go, the difficulty they have in navigating the system without help, and how work-intense these people can be if they aren`t in a group home setting. Many people with mental health issues requires some kind of long term assistance. If your building is up to code, it seems it would be a no-brainer for the city if the zoning did need to be changed.

Let us know how the story ends!

Heather Brandt

 

[brentdavies]

Hi,

I have been involved with 30 group homes in Edmonton for over 21 years.

The agency operating the home can be very stable, and the clients can be very unstable.

Zoning and public health issues will ever present, as well as the relationship with the neighbors and community.

Feel free to contact me directly as there is a lot of issues involved.

Brent

 

[chrisremley]

I have a friend (not in REIN) that rents a number of houses to an organization that places clients in the home. The clients have various mental and physical challenges. He has had some interesting issues with insurance for the home, particualarily since the fire in a `group home` last year. Many companies have refused him insurance because the home is being rented by a business rather than a family. I am sure he would be glad to speak with you about his experience if you would like. You can contact me for his number.

 

[cosens]

We rented to a group in Edmonton that looks after handicapped children. They have rented the main floor of the house and my son is living inthw basement apartment. My son had to get a criminal check to remain in residence. There have been no problems with this arrangment to date.

 

[lylefeucht]

We looked at buying a high-end family home in the Christie Park community of Calgary a few years ago. It was being rented as a group home at the time and I must say I was really impressed with the imaculate condition that it was kept in.
Of course, it was only a snap-shot in time but the tenants seemed very well behaved and the supervisor was really "with it" (yes they were home when we looked at it twice).
Cheers,
Lyle

 

[TMahoney]

Thanks for the multitude of responses. Just to bring everyone up to date, the insurance is going to go up huge. It was going to go from $900 to >$3000! The city inspector came to see it before it would be approved for group home usage and he wanted all of the bedroom windows replaced (including the brand new ones in the 3 upper bedrooms). There were other things he wanted addressed but these were already in the works with the extensive renovations we are having done on the house. I proposed a revised rental amount to the woman wanting to rent this house and have yet to hear from her. She insisted that my insurance shouldn`t go up because she already has commercial insurance. She claimed to have fire and liability and was sure her other landlords were paying normal rental house rates. I`m not sure how she can insure something she doesn`t own. I`m thinking that her other landlords are going to find out their insurance coverage is void should the carrier find out that they are running a business from these houses! Thanks again for your input and I look forward to hearing advice from anyone that can add to this thread. Tim

 

[winnielee]

QUOTE (TMahoney @ Feb 27 2008, 10:25 PM) I have been approached by a woman who operates group homes that look after mentally ill patients recently released from institutions such as Alberta Hospital. They can stay in these group homes for up to 6 years and as little as a few months. There is always someone working in the house to insure their safety, take care of their meals, etc.. She wants to take over both the upstairs and downstairs suites (which are currently undergoing major renovations). When told she would have to pay the amounts I was asking for each of the units, she was fine with that. Can anyone see any potential problems with this rental? Are there special zoning requirements needed? Should I be concerned with the reactions of the neighborhood? Has anyone had any experience in this regard? I`m thinking this would be a great way to have a long term tenant looking after both suites, paying me $2275/month (not including the garage), and not a lot of hassles! Or, am I being too naive?