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How to Start an Assisted Living Home (RALA)

How to Start an Assisted Living Home

Every successful business starts with a blueprint that blooms into a business plan, and this concept is the same for starting a residential assisted living home. Business-minded individuals who take their investments seriously seek guidance from leaders in the industry. 

Why risk jumping in the deep side of the pool knowing you can’t swim? Instead of gasping for air and desperately trying to survive, let the leaders teach you. 

Residential Assisted Living Academy has a 3-day A-Z training course, complete with a multi-level virtual tour of various assisted living homes. The power-packed course provides ongoing support and details about every aspect of the business, from securing a business loan to national regulations and procedures. Some of the most important steps to take before you dive in are listed in this brief overview.

However, why go it alone when industry experts are willing to give you the secrets to success?


Get Experience First

Gaining a degree of experience in the assisted living industry will certainly prove helpful to newcomers. It’s important to familiarize yourself with the operational details required in the day-to-day business. Learn the ups and downs so that you will know what to expect and how to prepare yourself for high waves. 

Write a Business Plan

A business plan is an absolute must. Your business plan is your blueprint for everything you will need:

  • Budget
  • Remodeling expenses
  • Lease arrangements
  • Insurance
  • Equipment
  • Labor Cost
  • Market assessments

The business plan explains the layout of your assisted living home, as well as how many people you plan to occupy. The plan should be as specific as possible, outlining emergency procedures, state and federal funding and grants. 

Establish a Business with the State

Register your assisted living home as a business with the state, and obtain the proper federal tax identification number. Afterward, acquire any additional permits. Obtain insurance policies.

  • General liability insurance.
  • Business property insurance.
  • Workers’ compensation insurance. 
  • Professional liability insurance. 

Obtain a License

Licensing for assisted living homes are done at the state level. This typically includes safety operations, infectious disease control, staff training, audits, and inspections, as well as disclosure and privacy protection.

Anticipate licensing boards to read through your business plan, operations manual, safety protocol and to do a complete walk-through of your home.

Familiarize Yourself with Local Laws

Most states put all the information you need on their own website. 

Converting Your Home

Major modifications will probably be needed. For fire safety, you may be required to install sprinkler systems and have a minimum number of exits, as well as having safeties on combustible devices like stoves and fireplaces.

Natural hazards throughout the home will also come up. You’ll also be limited in the number of residents you can accept. 

Oversight and Home Inspections

No matter what type of senior care home you decide to open, you can expect an initial visit from state regulators, along with periodic follow-ups. If you accept Medicare or Medicaid, you may face oversight from federal regulators, as well. 


The Residential Assisted Living Academy will likely save you money, heartache and lots of wasted time. 

As America’s aging population increases, entrepreneurs are finding new opportunities in opening assisted living homes. Even with the best of intentions to care for the elderly, successful businesses require more than a huge heart. These assisted living homes are expensive to run, have a lot of liability and require marketing strategies to survive amid competition.

This is why you should contact before diving and drowning in deep waters. 

Who wouldn’t want to learn from the best to ensure their success? 

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