How Placement Agencies Help Fill Assisted Living Facilities

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Finding new residents is one of the biggest challenges in running an assisted living facility. If you’re just starting out, you might wonder—should I use a placement agency to help fill my beds?

Placement agencies can connect you with families searching for assisted living options, but they also come with costs and trade-offs. Let’s break down how they work, their pros and cons, and whether they’re the right choice for your business.

Check out the video, too:

What is a Placement Agency?

A placement agency helps match seniors with assisted living homes, nursing homes, and independent living facilities.

Here’s how it works:

🔍 They Find Leads – Agencies use websites, ads, and networking to find families looking for care.
📋 They Build a Database – They keep a list of seniors needing placement and match them with nearby facilities.
🤝 They Partner With You – When a family chooses your facility, you pay the agency a fee—either a flat rate or a percentage of the first month’s rent.

Think of them like real estate agents, but instead of selling houses, they help families find care homes.

Pros of Using a Placement Agency

✔️ More Leads – Agencies attract families actively searching for assisted living.
✔️ Faster Move-Ins – They can help you fill vacancies quicker.
✔️ Better Visibility – Being listed with an agency can boost your credibility.

If you’re new and struggling to find residents, placement agencies can give you a jump-start.

Cons of Using a Placement Agency

❌ High Costs – Fees can be $1,500–$2,500+ upfront, plus a percentage of the first month’s rent.
❌ No Guarantees – You pay for leads, but not all will convert into move-ins.
❌ You Still Do the Work – You’ll need to follow up, give tours, and close the deal yourself.
❌ They Prioritize Residents, Not You – Agencies focus on helping families, not necessarily supporting your business.

For small facilities, these costs can add up quickly.

Big vs. Small Placement Agencies

🏢 Big Agencies (Like A Place for Mom)
✔️ Huge reach
✔️ Lots of leads
❌ Expensive (high referral fees)
❌ May prioritize bigger facilities

🏠 Local Agencies
✔️ Personalized service
✔️ Lower costs
✔️ More community-focused
❌ Fewer leads (but often higher quality)

For smaller homes, a local placement agency may be a better fit than a big corporate one.

Should You Use a Placement Agency?

It depends!

🏡 Small Facilities: Partnering with local placement agencies can help, but the cost may be too high. Instead, focus on networking and referrals.
🏢 Larger Facilities: Big placement agencies can ensure a steady stream of leads, even if they’re pricey.

💡 Not using an agency? Focus on:
✅ SEO & Online Marketing – Make sure families can find your website!
✅ Building Referral Relationships – Connect with hospitals, home health agencies, and community centers.
✅ Networking – Attend senior-focused events and caregiver support groups.

Pro Tip: Create a Referral Network

If you don’t want to rely on placement agencies, build your own referral system:

🔹 Partner with local hospitals, home health agencies, and community organizations.
🔹 Stay in touch with discharge planners and social workers—they help seniors find care.
🔹 Offer incentives to professionals who refer residents to you.

Final Thoughts

Placement agencies can help fill your facility, but they aren’t the only option.

If you’re just starting, weigh the costs carefully. A placement agency can jump-start your business, but a strong local network can provide long-term success without the hefty fees.

What’s your strategy for finding new residents? Let us know in the comments!

Ready to Start Your Assisted Living Journey?

Are you ready to take the next step in your assisted living investing journey? Download our Business Plan Checklist, which will guide you in creating a successful business plan for your assisted living facility. Also, consider applying to our Assisted Living Investing Mastermind program, where you'll learn to build a business plan, find the property, secure funding, obtain a license, and run and scale your business. Start building your roadmap to success today!

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