A Comprehensive Guide on How to Start a Sober Living Home

The place where he stayed in Phoenix, a two-story house with a hot tub and swimming pool, looked like a mansion in the photos that Jeffrey Hustito shared in text messages, his sister, Katherine Hustito, said. She was pleased he seemed happy, though she was surprised the treatment program operators had helped him get an Arizona identification card and sign up for Medicaid in the state. The insurance reimbursement process involves submitting claims for covered services, and the amount received depends on the terms of the insurance policy and the services provided. If you are planning to open a sober living home, one of your major concerns should be how you can finance the business’s operations.

Some reported households do not have running water, no heating, no air, no electricity, and a bathroom, perhaps, to serve more than a dozen people. These homes are supposed to help the addict recover and enter society as a productive citizen. Operating the transitional house as a non-profit organization requires that the owners or the board of directors do not pocket profits. All proceeds must be reinvested in the facility or programs to benefit residents. This is why you will find out that successful sober living homes often receive community support and recognition for contributing to addiction recovery efforts within the community. The group home, assisted living, halfway house or transitional home business is the exact same from a generic standpoint.

Halfway House Management

Our representatives can answer your questions and guide you toward treatment in your area. Your call will be confidential, and you don’t have to commit to a program to learn more about treatment options. Call today and find out how we can help you towards a healthier, happier future. Applying for non-profit and charitable assistance involves steps to ensure legal and financial compliance. Traditional payment methods such as cash and checks are commonly accepted, allowing residents to pay directly with physical currency or bank-issued checks.

Myths About Drug Detox

Don’t wait— reach out today to take the first step toward taking control of your life. One critical factor that will influence the profit a halfway house owner is expected to make yearly is the management style of the halfway house. It can be used to refer to a residential facility where people leaving prison or jail (or, sometimes, completing a condition of probation) are mandated to live before being fully released into their communities. More than 20 men live in the home, and they share just one bathroom https://appsychology.com/living-in-a-sober-house/ with no door. The owner of the property refused to do an interview, but one of the residents reluctantly showed me around. He says the perfect sober house has lots of bedrooms, and is far away from nosy neighbors.

Common Challenges for New Sober Living Homes

• By far, the best part about owning and running a recovery house has been what it’s done for my son and me, as it’s probably one of the most rewarding things I’ve ever done in my life.
• Traditional payment methods such as cash and checks are commonly accepted, allowing residents to pay directly with physical currency or bank-issued checks.
• You’ll need qualified counselors, administrative staff, and possibly healthcare providers.
• The use of illegal drugs or the use of prescription or over-the-counter drugs or alcohol for purposes other than those for which they are meant to be used, or in excessive amounts.

However, it’s crucial for individuals to evaluate their specific needs and circumstances to determine if this type of environment is the right choice for their recovery journey. Sober living homes, also known as recovery housing or halfway houses, are structured living environments for individuals who are in the process of recovering from substance use disorders. These residences serve as a bridge between formal treatment programs and mainstream society, providing a supportive and substance-free space that fosters continued sobriety. Residents typically have completed a rehabilitation program and are expected to abstain from alcohol and drug use while living in these homes. You don’t need a license or certification to open a sober living home, but some states require that voluntary certification processes be met first. Jason, director of the Community Research Center at DePaul University, believes that well-managed sober homes can be a positive step for those trying to change their lives.

Create a welcoming and supportive environment.

The reason why some people open a sober living home is to contribute their quota in helping people with drug addictions live stable and responsible life. Most communities and even the government love it when social entrepreneurs set up sober living homes in the community. Justin finds recovering addicts at local churches, probation and parole offices, and through ads on Craigslist. But unlike some sober home owners, Justin actually offers services like drug testing and counseling. As expected, high-end sober living homes with well-maintained and comfortable facilities will naturally command higher fees which in turn will boost the income of the sober living home. With the different sources of funding that a sober living home can leverage to make money, it is important to note that certain factors can influence how much a sober living home can make yearly, and their profit margin.

Diversified Revenue Streams

And then there are the larger players…companies that are owned by private equity. Do you think Steven Schwarzmen and Blackstone Group would have purchased Southern Cross, the largest care-home provider in Europe, of this was not a profitable industry? Realtor Brian Wall says this kind of money is attracting people to the sober home business. Most sober living homes operate as non-profits hence they are not supposed to make a profit, but that does not stop them from declaring profits.

In a typical Texas neighborhood, this property will rent for anywhere from $1000 — $1350 per month. Unfortunately, most properties of this nature will cost between $115,000 — $155,000. Without sober house a substantial down payment, this property will eventually be a money loser on a monthly basis before any potential appreciation or capital gain (we will get into how to evaluate properties in future articles).

How Much Do Halfway House Owners Make in Profit Yearly?

Any profits are expected to be re-invested into the facility or programs to benefit residents. The actual profit potential for a for-profit will have to be considered on an individual basis owing to the factors above and how much residents are willing to pay. State and local licensing requirements also greatly affect a halfway house’s profit potential. The National Institute on Chemical Dependency notes that licensing standards often require in-house professionals and programs that greatly limit profitability. The size of the facility will greatly influence the number of residents and the possible expenses and overhead.