Opening a sober living home is no doubt capital-intensive. You should make plans to spend about $250,000 if you want to open a sober living home in the United States of America.
Note that apart from the factors discussed in this article, other factors can influence the overall cost of opening a sober living home.
Some factors may just be unique to your country, city, or state hence you must make sure you first carry out your due diligence and conduct your feasibility studies before drawing up a budget for opening a sober living home.
Factors That Influence the Cost of Opening a Sober Living Home
Purchasing, Rent, or Lease of Property
When it comes to opening a sober living home, one of the major areas where you should expect to spend the bulk of your budget is in acquiring, leasing, or renting a property.
Note that if you opt for rent or lease, you are going to spend far less when compared to someone who settles for an outright purchase or mortgage for the property.
Of course, the size, location, and available facility in the property will determine the amount you will spend in this regard.
Note that you should budget about $85,000 or more if you want to rent a decent facility for your sober living home in the United States of America.
Note that the cost of real estate, utilities, and other living expenses can vary significantly from one region to another. Urban areas and regions with high demand for recovery services may have higher costs.
The Required Renovations and Modifications
If you are fortunate enough to get a property that requires little renovations and modifications, then you will spend less, but if you are not too lucky, then you must be ready to create a robust budget for renovations and modifications of the property.
The truth is that no matter the type of property you acquire, lease, or rent for your sober living home, you will have to spend money to make sure that the facility meets the specific requirements of a sober living home, such as bedrooms, common areas, counseling rooms, and security features et al.
Compliance with local building codes and licensing requirements may necessitate renovations or upgrades to the property. These costs can include safety features, accessibility modifications, and other improvements.
The Cost of Securing the Needed Licenses and Permits
The licenses and permits required to open a sober living home can vary depending on the location and the specific regulations in your area.
However, if you are looking to open a sober living home, then you must be prepared to get a general business license that allows you to operate a sober living home in your area.
This license is typically obtained from the local city or county government. Aside from general business license, you should also make plans to get licenses and permits such as zoning and land use permits, health and safety permits, and state or provincial licensing.
The Cost of Staffing, and Training
The fact that you cannot operate a sober living home alone means that you will need employees to work with. In essence, if you want to open your sober living home, then you must create a budget for employees who will occupy various positions in your organization.
You should consider the cost of hiring qualified staff members, such as counselors, case managers, administrative personnel, and support staff.
Note that the number of employees you are expected to hire for your sober living home will depend on the size of the facility and the additional services you intend to provide.
The Cost of Furnishings and Supplies
Trust me, furnishing a sober living home requires a lot of finance hence you must create a robust budget for this aspect of the business.
In essence, if you are planning to open a sober living home, then you should make plans to furnish the sober living home with essential items such as beds, furniture, kitchen equipment, office supplies, and daily living supplies, such as:
Toiletries, cleaning supplies, and kitchen essentials. These are just the basics, and you may want to go the extra mile to add additional furnishing such as a library, gym et al.
The Cost of Insurance
In the United States of America, it is considered illegal to operate a business without having some of the basic insurance policy coverage in place.
So, part of the cost that will add up to the overall cost of opening a sober living home is the insurance policy coverage for your sober living home.
You should make plans to purchase general liability insurance, professional liability insurance, property insurance, workers’ compensation insurance, and abuse and molestation insurance.
Note that the cost of insurance for a sober living home will depend on various factors, including the size of the facility and the services offered.
If you plan to provide additional services like therapeutic programs, counseling, vocational training, or educational programs, you will need to budget for the necessary resources and materials needed to carry out such programs.
Of course, the amount you will spend on executing your program will add up to the overall cost of opening a sober living home.
Note that providing ongoing support services for residents, such as transportation, job assistance, or educational programs, can also contribute to the overall cost of opening your sober living home.