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Perhaps you’ve just started to think about converting your home into an assisted living facility (RCFE), or maybe you’ve already done much of the research but just can’t come to a final decision. Take your time and consider all the aspects and ramifications involved. The decision you make not only affects you, but also family members, future residents, and employees.

Deciding whether to start any new business is challenging, but starting an assisted living business requires particular deliberations. Running an RCFE takes dedication, tenacity, and a love for the seniors you bring into your home. This article looks at five essential questions to examine before reaching a definite conclusion.

1. Is My Home in a Good Location for an RCFE?

Since we’re focusing on turning your home into an RCFE, this question is pivotal. Although not all potential residents look for the same things when considering the location of a facility, most mention basic requirements:

• Safe, peaceful surroundings without excessive noise or traffic
• Interesting walking routes with sidewalks in good repair
• Proximity to medical facilities and quick-response emergency care
• Nearby amenities such as parks, libraries, or stores

Additionally, if your home cannot meet zoning requirements or state regulations, you cannot use it for assisted living. 

2. Is There Enough Demand in This Area for Another Assisted Living Facility?

If your home, marketing research is the next critical step. You can hire a consultant or you can also find information online and through interviews yourself.

Determine the number of seniors in your area who may need assisted living services now or soon. Take a close look at current competitors and their facility occupancy rates. If facilities exist that are not operating at full capacity, it would be futile to open another RCFE.

City, county, and state government agencies as well as senior advocacy groups are good places to start your research. You can also obtain help from trade associations, such as the California Assisted Living Association. Finally, visit any nearby assisted living facilities and talk with staff members to determine if the current needs of area seniors are met.

3. Do I Have Sufficient Financial Resources for Facility Upgrades, Equipment, Licensing Fees, and Initial Operating Expenses?

If you’ve compared quotes from reputable contractors for converting your home, researched the California Department of Social Services website for licensing information, and drawn up a business plan, you should have an idea of whether you are financially ready to operate an RCFE out of your home. If you are coming up short, you can put your plans on hold until you save more money or find an investor to help get your facility running.

Before your RCFE license application is approved, California regulations require evidence that you have three months of operating expenses in a savings account. This doesn’t just mean you can pay the utility bills on time so power isn’t shut off. You must have the full amount of money to cover all payroll and other expenses needed to operate your new RCFE for at least 90 days.

4. Do I Have the Perseverance and Passion For Completing the Lengthy Planning, Certification, Hiring, and Marketing Processes?

Starting a new assisted living facility is a long, complicated process that requires time, money, and research. A good barometer for determining your suitability is to obtain an RCFE administrator certification. Not only is an assisted living manager certification informational, but it is also required by California law. You or your staff member must be a certified administrator before your home can become an RCFE.

Even after opening, you may have to deal with difficult experiences such as the illness of a resident or an important employee deciding to leave. Can you manage change and stress? 

Many people open an RCFE because they find deep satisfaction in caring for a special friend or relative, but business competencies are also required to succeed. You can learn these skills, but they take work. You need a firm commitment to your mission, the ability to stay focused on your goals, and the perseverance to keep going.

5. Can I Find, Inspire and Train the Right Employees To Make This Vision a Reality?

Finding the right people to staff an assisted living facility has always been a challenge, but the current shortage of workers in all sectors has made it even more difficult. Before finalizing your decision, talk to as many prospective employees as possible to gauge interest.

Ask what is important to them in a career. Many people want to feel they are making a difference, and they prioritize work-life balance. Support potential staff members with experience by helping them enroll in RCFE continuing education classes. Your ability to arouse interest in improving the quality of life for seniors indicates how successfully you can motivate future employees. 

Several tactics can be used to retain and attract employees to your RCFE. 

Assisted Living Education Can Help With Decisions, Certifications, and Licenses

You are not alone in your journey to convert your home to an RCFE. We can assist you with the multiple steps involved in completing an RCFE license application and making sure you and your staff members are certified before you open. Contact us today.

Assisted Living Education is a certified vendor providing RCFE classes for employees and guidance in keeping your RCFE compliant and running smoothly.

Despite the abundance of an aging population that requires help with daily living activities, finding residents for your assisted living home can still be challenging. A successful residential care facility for the elderly (RCFE) depends on the ability to provide desirable services in the right location paired with creative assisted living marketing techniques.

Whether you are just getting a new facility off the ground and working on your assisted living license or caring for seniors in an established facility, taking time to promote the features you offer can help keep your home filled with happy occupants. This article offers sound strategies for locating and attracting clients for a new or established RCFE.

Develop a Plan To Guide Assisted Living Marketing Efforts

Putting together a marketing plan to make your facility attractive to seniors and their loved ones is a big undertaking. However, breaking down the project into manageable steps promotes focus and prevents overwhelm.

Once you begin, make sure your RCFE is ready to open and meets state requirements, including a qualified administrator with a current RCFE Administrator Certification. When everything is underway, put these seven strategies to work.

1. Investigate the Competition

Before you complete the steps to opening an RCFE in California and submit your assisted living license application, carefully research competing assisted living facilities in your area. In doing so, you’ll gain a better perspective on the services and amenities that are most important to potential residents. 

Try to visit a variety of care facilities from small family-run operations to large corporate chains. Pay special attention to those similar in size and style to your RCFE. Investigate price structures, competing amenities, and marketing strategies your rivals are implementing.

In addition to a physical visit to an RCFE, be sure to check out the competition online. Read their reviews and take note of the services they highlight. Think about what you could do better or differently. 

By taking the time to understand the competitive landscape, you’ll be in a better position to outperform competitors.

2. Recognize the Needs of Potential Residents

Creating a profile of your ideal customer is helpful in understanding who you will be marketing to. Although this requires an investment of time, it is worth every minute. Not only do you learn what prospective residents want, but you also acquire information that’s vital to serving your assisted living clientele.

When it comes to marketing for an RCFE, recognize the life stage your prospective client is in. Remember that assisted living is sometimes the first step in the progression from total independence to nursing home care.

Many seniors considering your facility are giving up a long-term home, downsizing their possessions, and transitioning to a residential community. Since they are looking for a homelike environment, as much independence as possible, and a place they can fit in, these become important points to emphasize in your marketing.

3. Create a Website

Your assisted living marketing methods must utilize current technology and internet exposure in today’s world. Many seniors are comfortable now with computers, technology, and social media. Some probably used these tools during the latter part of their careers.

When older individuals decide to transition to an RCFE, their adult children often become involved in the search for an appropriate facility. They often get their information from online searches consisting of facility websites and third-party review sites. 

For those actively researching assisted living possibilities, your RCFE website becomes their initial contact with your facility – it will likely be their first impression before they visit your facility. 

 Since a positive online experience is so vital, make sure your website includes superior functions:

• Exhibits professional design, effective headings, and high-quality content
• Supplies understandable information and straightforward navigation
• Furnishes contact details such as an address, phone number, email, and maps
• Incorporates photos and videos
• Contains comments and testimonials from residents and family members
• Provides a good experience on a  mobile device
• Includes regular updates
• Has an activity calendar and a resident-driven menu

4. Participate in Internet Listings and Review Sites

Another valuable strategy utilizes internet directory sites such as Google Business Profile and independent third-party sites that list and review assisted living facilities. They can help prospects find your website, and provide online testimonials from others about your work.

Actively respond to reviews to demonstrate your commitment to customer service and promote confidence in your RCFE. One study shows that 32% of potential customers read at least 4-6 online reviews before making a decision to engage with a business.

Review management is a powerful tool when attracting new residents.

5. Choose a Social Media Site or Two

A professional social media presence that features recent activities at your facility and promotes upcoming special events keeps your RCFE familiar to people even before they may need your services. Share the values of your home through posts, photos, and videos. Social media gives you the ability to reach a wider audience than you would normally be able to reach. 

Focus on one or two sites so you can participate with regular, quality information.

6. Feature Relevant Blogs

Spotlight regular blogs on your website to familiarize prospects with your assisted living home. These articles should provide helpful information on issues older individuals may face, such as downsizing, moving, adjusting to different living environments, or making new friends. You can write the blogs yourself or hire a contract writer or service to furnish them.

Blogs not only give valuable information but also help to drive visitors to your website and help to establish you as an expert in senior care.

7. Sponsor Community Events

You can adjust the type and size of the occasion to the location, space, and interests of your residents and community members. A small RCFE might offer a Halloween party for neighborhood children, a book club for residents and community members, or a summer lawn party that includes the neighborhood. Start small, and if refreshments are planned, ask for advance reservations.

Highlight Current Training in Your Assisted Living Marketing Efforts

Whether your administrator has completed continuing education classes required to maintain a current certificate or a new employee is working on training classes, feature the information on your website and social media accounts. 

You can always contact Assisted Living Education to answer your questions and provide high-quality training classes for all your RCFE certification needs. We want to empower you to provide quality care to all your residents.

People Also Ask: 

How do I find employees for my RCFE? Finding and retaining dedicated caregivers for your RCFE can be challenging without a solid hiring process. Here are seven ways to attract employees to your RCFE.

2022 Update

By the year 2035, it’s projected that there will be more than 78 million people ages 65 and older living in the United States, up almost 60% from the 46 million in 2016, according to population data. Every state is expected to see massive growth as baby boomers age into retirement, but none will see an increase quite like California. By 2036 the state will see more than 10,000,000 people 65 and older which comprises about 23% of our population.

Planning for an aging population is no longer conjecture. It is an absolute necessity. Doing so requires that we have the infrastructure in place to care for those who will need it, which means more licensed care facilities, more available beds, and more trained and certified RCFE administrators.

Getting there will not be easy, and setting out to open your own RCFE is not for the faint of heart. It’s a significant business decision, but one that carries with it one of the most rewarding acts of service one can provide:  caring for those who came before us. Here’s how you go about opening and RCFE in the state of California.

1. Find a qualified, certified administrator.  

The first and most important step is to find a certified administrator. Without having a qualified, certified administrator on your team, none of the rest can follow. In all likelihood, you’re probably intent on becoming certified yourself, but how do you go about doing that?

To become certified you must first take the DSS-required 80-hour Initial Administrator Certification Course, and then take and pass the DSS-administered 100-question test with a minimum passing score of 70%. This test must be taken within 60 days of you completing the 80-hour course, after which you must submit the required paperwork and fee within 30 days of passing the test.

Not everyone is qualified to be an administrator of your facility. The general requirements call for a high school diploma or equivalent and being at least 21 years of age. For a 16-49 bed facility, you must have at least 15 college units and have at least 1 year of experience working in an RCFE or equivalent. To be an administrator of a 50+ bed facility, you’ll need to have a minimum of 2 years of college, and have at least 3 years of experience working in an RCFE or equivalent.

Are you qualified, and ready to take the DSS-required RCFE initial certification course for administrators?

2.  Secure the physical plant.

It will sound obvious in hindsight, but you can’t be the administrator of a residential facility for the elderly if you don’t have the actual facility part locked down. In order to submit a license application for your facility, you must show “control of property” — that is, proof that you either own the property, that you are either in the process of buying the property or that you will be leasing/renting the property.

3. Contact your local fire marshal for a pre-inspection.

The sooner you do this, the better! It’s possible that the fire marshal will charge you a nominal fee, but this inspection will let you know early on if you will need to make costly modifications to your home/facility in order to be compliant with local fire codes and state regulations. Money well spent! If you don’t make these modifications, you won’t be able to get the maximum number of non-ambulatory rooms or apartments out of your facility. You’ve already come this far! Maximize your investment by making these modifications, or find another location!

4. Take the online orientation course with DSS.

You must take the DSS Application/Component 1 Orientation course.  You only need to take this course once. There is a registration fee and access to the courses is limited to 30 days once the fee is purchased. This is all done through the DSS website.

When finished, you will submit a copy of your orientation certificate. The orientation is the beginning of the process. Stay informed about future regulation changes and updates through a certified regulation service.

5. Submit a license application to DSS.

Now we’re getting to the fun stuff. The next step in this process is to prepare and submit an RCFE license application to DSS, including parts A and B, along with the applicable fee. We won’t sugarcoat it:  this is not like filling out an application for a driver’s license. The Applications Instructions alone are 22 pages in length, and all told you’re looking at hundreds of pages to gather information for, prepare, and fill out. Attempting this on your own is a recipe for disaster — just one error could delay your facility’s opening by months!

Instead, it’s smart to consider having your RCFE license application completed by a professional. Our team has licensed hundreds of small and large RCFEs, and worked with DSS licensing personnel for more than 15 years. We have never had an application rejected due to our error!

Do you have the required 3 months’ of operating costs in the bank? You must open a bank account in your facility name and deposit at least 3 months’ operating costs into it. The DSS will verify this in the process of reviewing your application.

Be patient. This process may take 4-5 months.

6. Market your facility.

Congratulations, you’ve submitted your application! Now it is time to start meeting with the potential residents who fill your facility once you are licensed. You are NOT allowed to move residents into your facility until you secure the license from DSS, but DO start looking for residents.

Don’t wait until you secure the license, because that will just be time lost! In our post detailing 6 Steps for a Successful RCFE we talked about the importance of choosing your residents wisely. Remember, your first resident is your benchmark and will set the tone for your facility in ways you might not expect.

Potential residents and their families will likely be searching online for information about facilities well before they call or visit. It’s necessary to cultivate potential client relationships with a robust online presence. Take steps to help your website be found via online reviews, directories, and other digital marketing strategies to improve your RCFE’s online marketing

7. DSS will schedule a Component II (face to face) meeting at their office.

This is step two in a three-part component process that must be completed by all new licensees. Once your application has been reviewed, you will be contacted by the local DSS office for a one-on-one interview with the reviewing analyst.

Component I was the orientation course you took in #4 on this list, and Component III involves  “category specific training and discussion in areas not often understood by new licensees intended to promote successful facility operation.” Basically, this is the facility tour where the Licensing Program Analyst (LPA) determines if the facility is safe, stocked, and ready to receive residents. Both components II and III will be done once DSS accepts your license application, but prior to actual licensure. These are all essential aspects of the license application process.

8. DSS will schedule a pre-licensing visit to inspect your facility.

You’re so close! You’re almost there! A pre-licensing inspection by the DSS LPA is the last step in the RCFE license application review process. DSS will send you a checklist for you to complete prior to this visit. Make sure you complete this checklist fully and have it available for their review when they come to visit.  Note:  DSS will NOT conduct a pre-licensing until your fire marshal grants their approval.

9. Hire staff and train them accordingly.

Putting together your team and training them accordingly is arguably the most important step in this entire process. We’ve discussed before the perils of fire-drilling the hiring process in our post about The 10 Biggest Mistakes RCFEs Make. You aren’t just looking for warm bodies to fill these important caretaking positions. You want a passionate team of people who want to come in every single day intent on making the lives of your residents better.

Remember, you don’t want to wait until you are licensed to build your team, because you will not be able to move in and care for residents without a staff! Once you’ve found the right people, make sure that they are properly trained and meet all the state requirements. And also, don’t forget the importance of ongoing CEU training for RCFE administrators and staff as well!

Managing your staff in the day-to-day so they thrive will produce a well-run operation that both staff and residents will appreciate. Commit to a management style that encourages communication and accountability to help reduce employee turnover

10. DSS issues you a facility license.

You did it! Yes, you! Let that feeling of pride wash over you. You are now the proud administrator of a fully licensed RCFE. This is everything you’ve worked so hard toward, and it’s time to open your doors. Now you can move in your residents that are on your waiting list!

The process to opening an RCFE facility in California may be long, but it’s rewarding. It’s okay if it takes you a year or more to get your facility off the ground — it’s not a race, and in the end it will all be worth it. The senior care industry is among the fastest-growing industries in the country, and California is no different. We must be prepared to meet the needs of seniors with the best care possible. More growth means more new facilities will be needed.

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Update for 2022 RCFE Regulations & Operations During COVID-19

Given the population’s nature of an RCFE facility, the threat of contracting and spreading the coronavirus proves a tremendous challenge. Beyond the “new normal” operating procedures of enforced social distancing, mask and glove wearing, and ongoing temperature checks to better protect the residents, the staff must also take even greater precautions for their own protection. 

At the end of May, 2020, the Center for Disease Control released enhanced guidelines for every RCFE administrator and staff member to follow in the face of the pandemic. These include:

• New regulations about visitor restrictions and updated outlines on group activities, especially as some facilities start to relax their previously mandated restrictions.
• In addition, new information was released regarding the best practices for tracking infections and preventing infection of others in a systematic way.

This current contagion of COVID-19 presents unprecedented challenges both for aspiring RCFE administrators and long-standing ones. But never has the need for dedicated RCFE workers been more urgent. Getting your RCFE license now will go a long way to helping our senior population today and tomorrow.

The need is there. Are you ready to provide it?

People Also Ask: 

What should you look for in an RCFE administrator program?  There are several factors to consider when choosing a program. Most importantly, make sure the program is administered by a vendor certified by the Department of Social Services.

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Assisted Living Education is the leading provider of RCFE certification classes, licensing, products and services for assisted living. Our teachers are industry professionals with many years of experience that are engaging, entertaining and highly informative.

There’s a lot of psychology that goes into the design of marketing products and store layouts. Drawing the consumer’s attention to different products at various shelving levels, or placing cheap, tempting items close to the register creates “impulse buys.” Every product in the store has been designed and marketed to persuade your buying behavior.

A similar approach can be used in assisted living or other facilities which provide services to seniors, especially in memory care. Instead of inspiring residents to make purchases, carefully planned decor can make residents feel more comfortable and safe in their surroundings.

In the past, many facilities had used bland colors, similar to what you would find in a hospital. These neutral colors were thought to be non-offensive and less distracting, which they were, but sometimes tended toward bland. However, recent changes have been implemented in some memory care facilities that move away from mundane decor and create environments that residents enjoy living in.

This doesn’t mean that anything goes; different designers have taken care in their choices of decor, including choosing colors and patterns that are not overly stimulating.

Mindful Designs

Designs for assisted living facilities should keep their main functional goals in mind, but there’s still plenty of room to add custom touches as well.

The design of common rooms should be open to flexibility, to accommodate different activities, gatherings, and special events like holiday parties or guest musicians.  These areas can also help build a bridge between the facility and the community, as an inviting space to bring in volunteers to engage with residents, put on performances, or other unique occasions.

At the same time, while it is nice to be able to rearrange furniture, it is useful for residents if those rearrangements are kept to a minimum, especially for those with cognitive or memory issues. Maintaining a familiar space can help avoid confusion, and even trips or falls.

Less is always more, especially in an assisted living environment. Rooms and common spaces should be clutter-free to help keep clear pathways and also reduce fall risks.

Color Coordinating

Attributes of the actual decor can also evoke positive (or negative) feelings and associations. Natural colors or colors associated with nature (brown/wood, green/foliage, yellow/earthy) are warmer and friendlier, while blues and grays tend to be cooler yet sophisticated.

Another thing to consider in color choice is that color/vision also tends to change as we age. Seniors see more yellow, and gray is often a common color used in institutional settings. It’s suggested that using greens and yellows can help enhance colors in seniors’ vision.

Bold or dramatic patterns are not typically the best for residents in an assisted living situation, as they may be overly stimulating. Subtle patterns, accent colors, and gentle contrasts are useful, however, and can help denote a transition or border from one room to the next.

Natural Lighting Benefits Everyone

When possible, take advantage of natural daylight to brighten a room. Not only is it ‘friendlier,’ but it can physiologically help residents stick to a regular sleep cycle. Exposure to natural light could potentially increase exposure to Vitamin D, which encourages muscle movement, cell growth regulation, and helps the body absorb calcium – a crucial benefit in the fight against osteoporosis.

Using more natural light is also a cost-cutter in terms of electricity, a  financial benefit to the facility as well – a benefit everyone can enjoy!

A Home Environment

Sticking to warm or lively colors can make the facility look friendlier and more like home, which can have a positive effect on residents and their families alike. An inviting color palette can help the environment feel less institutionalized and more personal and therefore comforting.

Age-friendly materials like anti-skid flooring, safe stairs, and accessible baths contribute to the ability of residents to feel at ease within their environment. 

For example, furniture should be comfy, but not too comfy; extra cushy chairs can be difficult for residents to climb out of. Firmer, supportive chairs at an appropriate height would be better suited. Armrests should not be too high so the resident can use them comfortably to rise from a seated position.

Connect with the Great Outdoors

Outdoor areas can work in harmony with the rest of the facility. Properly designed outdoor areas will extend functionality and provide a variety of experiences for residents, guests, and staff. The positive effects of outdoor exposure include stress reduction and healthy exposure to natural light and air.  Create outdoor wellness areas that function as their own rooms. Examples include: 

• Fitness stations to promote exercise
• Lawn areas for outdoor activities like yoga, Tai Chi, or Bocce ball. A putting green could be incorporated as well. 
• Outdoor gathering areas with fire pits, comfortable seating, and pleasant landscaping
• Wide, flat trails for walking and socialization
• Community gardens for residents to grow their own food or flowers
• Outdoor amphitheaters create a space for outdoor entertainment like movie nights or plays 

Create Spaces for Staff

Residents benefit from consistent care, especially from people they are familiar with. Additionally, with the onset of Covid, staff shortages are commonplace. Staff retention is more important than ever! 

Invest in making your staff feel comfortable and appreciated. Staff lounges are a great place to start. For example, an outdoor patio for staff use can help people decompress during breaks. Within the staff lounge area, consider adding charging ports for electronics, a recliner, or a snack center in addition to the usual dining table and chairs.

People Also Ask

How can I make my RCFE eco-friendly? There are several green building initiatives for RCFEs that can simultaneously improve the lives of residents and help the environment. 

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Assisted Living Education is a premier provider of classroom-based and online coursework for professionals in assisted living. We offer RCFE Administrator Certification Training, RCFE licensing, continuing education, and consulting in specific areas like compliance, staff training and licensing. Please visit our contact page to reach us for any inquiries.

People think about starting a Residential Care Facility for the Elderly (RCFE) in California for many reasons. Some feel aging demographics make caring for the elderly a good career opportunity. Others may have tended to an incapacitated family member or friend and found it very rewarding.

Occasionally, an individual may inherit a sprawling house that seems ideally suited for a care facility or discover a great building for sale at a reasonable price. Sometimes, assisted living employees may conclude they could run a caring and innovative establishment if they went into business for themselves.

Whatever your motivation for starting an RCFE or assisted living facility, you may wonder what it would cost to get your business off the ground. 

This article examines some of the steps involved in opening an assisted living home and breaks down the expenses. Keep in mind these expenses vary based on the size and scope of your proposed facility.

Start-Up Steps and Costs

Something important to note is that California’s assisted living model provides for a large variation in facilities. Some homes offer care for only a few residents, while others offer services to dozens or even hundreds of individuals. 

All RCFEs provide a room, three meals and snacks per day, common areas for socializing, enrichment activities, help with managing medications, and assistance with activities of daily living. Although the communities differ in living environments, extra amenities, and dining options, they all require an understanding of the costs of the various  start-up expenses which include the following:

Training and RCFE Licensing Fees

Even if you plan to hire an administrator for your business, obtaining an RCFE administrator certificate is a good idea; it is required by California law if you plan to run the facility yourself.

During the 80-hour certification training, you become familiar with California RCFE regulations and reporting requirements, as well as the fine points of assisted living operations.

The current price for the course is $559 with ALE and the fee to take the state-required exam is $100. Once you pass the exam, you need to pay an additional $110 state fee for the certification. Keep in mind that your future staff will also need RCFE classes to meet caregiver requirements. 

You will also require an RCFE License for your facility from the California Department of Social Services. This process starts with a three-hour orientation fee of $50 and a license application fee based on the number of resident beds in the facility. 

For example, fees start at $495 for one to three beds, increase to $990 for four to six beds, and $1486 for seven to 15 beds. The application fee for a 75- to 100-bed facility is $3469. 

Since the RCFE license process is quite long and complex, many new owners hire professional assistance to prepare the application. ALE’s fee for these services can start at approximately $2,000.

Building Outlay

Whether you buy an existing facility that has residents and staff in place, convert a property you already own into a compliant facility, or search out an ideal building to purchase and modify, housing your senior care business is your largest potential expense. 

Very few assisted living businesses lease buildings; most own the property they utilize. In California, you must show “control of property” which means you must show proof that you own, are in the process of owning, or renting a property for use as an RCFE. Without proof, you won’t be able to submit your license application. 

 Down payments vary, depending on the type of loan. If you qualify for a 504 SBA loan, you may need to put as little as 10% down. A traditional bank loan may require a down payment as high as 40% in some instances.

Even a facility currently in business may need some updates, and you will need to incorporate the improvements into your mortgage or have the additional money on hand. If you already own a suitable residence, be sure to get several firm bids for needed modifications and upgrades before making a final decision. The remodeling expenses may be more than you expect.

Furnishings and Equipment

If you purchase a successful operation, most of the furniture, kitchen equipment, and perhaps an inventory of supplies may be included. This might also be somewhat true if you are converting your home. Take a thorough inventory of items already in place and indicate which ones need replacement.

If you are furnishing the RCFE from scratch, you may want to figure anywhere from a low of $3,000 up to $5,000 or more for each residential room and higher amounts for recreational, dining, and kitchen areas.

Operating Expenses

Another initial cost is setting aside cash for the first few months of operating expenditures. Experts suggest a minimum of one to two months’ expenses, but in California, the state sets this for you. Before the State of California issues your RCFE license, you must prove that you have three months of operating funds set aside in a bank account.

Once again, monthly operating costs vary with the size of the facility, the number of residents and staff, and the amenities offered. To come up with a general estimate, be sure to include:

• Wages for caretaking staff, kitchen personnel, housekeeping, and laundry workers
• Employee RCFE classes, benefits, and Social Security taxes
• Food for residents and possibly staff (it is a nice benefit)
• Laundry and cleaning supplies
• Mortgage Payments
• Utilities and Property Taxes
• Advertising and Office Supplies
• Recreation and Entertainment
• Transportation

Marketing and Advertising Expenses

You won’t be able to accommodate residents until you’re fully licensed, but it’s never too early to start marketing your RCFE. Create a marketing plan for your facility to attract residents. 

Before spending money on digital marketing or PR, establish a marketing plan that outlines the expected outcomes of your marketing activities. Include KPIs (key performance indicators) that can be used to determine if your marketing tracks with your goals. All marketing is an ongoing strategy, so expect this to be a monthly expense. 

Many owners outsource their marketing needs to an agency or consultant. As a rough estimate, small to mid-sized businesses usually spend about 10-20% of revenue on marketing.  

Start Small and Expand Slowly

California has a great assisted living model that allows both the owner and RCFE administrator to begin with a small property and learn along the way. 

If you have some capital, to begin with, then realize that over a short period of time with great management and marketing, your return on investment will make the initial sacrifice worth the effort.

Operating or owning an assisted living facility is one of the best careers you can embrace, but it can become overwhelming if you take on too much before you are ready. It’s generally best to only take on what you can confidently handle at one time and grow your business organically over time. 

If you have questions or need advice about opening an RCFE, contact us at Assisted Living Education. We are here to help you provide quality care and educational assistance.

People Also Ask: 

Who licenses assisted living facilities in California? 

Licensing, monitoring and regulation are provided by the U.S. Department of Health and Human Services along with the California Department of Social Services. Every 5 years, the California Department of Public Health performs inspections.