How to Start an Unlicensed Care Home (The Right Way!)

how to start an unlicensed care home non-medical senior housing room and board business model senior group home setup unlicensed assisted living business zoning laws for group homes Apr 21, 2025

 

Starting an unlicensed care home can be a great way to enter the senior living industry without dealing with complex licensing regulations. But before you jump in, you need to know what’s legal, what’s not, and how to set up your business for success.

This guide breaks it all down for you—so you can start an unlicensed care home the right way and avoid costly mistakes. 

Check out this video, too; 

What Is an Unlicensed Care Home?

An unlicensed care home is a residential facility that provides housing and basic assistance to residents without offering medical care or services that require a license.

Key Differences Between Licensed & Unlicensed Care Homes:
✅ Licensed Care Homes: Provide medical services, require inspections, and follow strict state regulations.
✅ Unlicensed Care Homes: Offer housing, meals, and supervision but do not provide medical or personal care that requires licensing.

Step 1: Understand Your Local Regulations 

Just because a home is ‘unlicensed’ doesn’t mean it’s unregulated. Each state has different rules about what you can legally offer.

🔍 Research these key areas:
✅ Zoning Laws – Does your city allow group housing in residential areas?
✅ Resident Agreements – What can and can’t you include in your contracts?
✅ Allowed Services – Can you provide meals, transportation, or housekeeping?

💡 Pro Tip: Connect with an attorney or local regulatory office to make sure you’re following the law.

Step 2: Define Your Business Model 

What kind of residents will you serve? Your business model will determine how much you can charge, how you operate, and what services you provide.

🏠 Common Unlicensed Care Home Models:

  • Room & Board Only – Provides housing and meals but no additional services.
  • Senior Group Home – Offers communal living with supervision but no personal care.
  • Sober Living Home – Supports residents in recovery but does not provide treatment.

Step 3: Find the Right Property 

Your location can make or break your success. Look for a home that:
✅ Has multiple bedrooms to maximize income potential.
✅ Is located in a safe, accessible area that appeals to your target residents.
✅ Meets zoning requirements for group housing.

Step 4: Set Up Your Business Legally 

Even though you’re running an unlicensed care home, you still need to operate as a legitimate business.

✅ Register your business – Most care homes operate as an LLC for liability protection.
✅ Create a strong lease agreement – Protect yourself and your property.
✅ Get insurance – General liability insurance and property insurance are a must.

Step 5: Market Your Care Home 

Once everything is in place, it’s time to find residents! The best way to fill your home is through referrals and online marketing.

🔹 List your home on senior living directories.
🔹 Build relationships with social workers and discharge planners.
🔹 Create a simple website so families can learn about your home.

💡 Pro Tip: Word-of-mouth referrals are gold in this business. Provide an amazing environment, and residents will come to you!

Next Steps: Get Started Today! 🚀

Starting an unlicensed care home can be a smart way to enter the assisted living industry, but you need to do it the right way.

✅ Step 1: Download the Business Plan Checklist to start planning.
 ✅ Step 2: Apply for the Assisted Living Investing Mastermind for expert coaching.
 ✅ Step 3: Follow this guide, take action, and bring your vision to life!

 

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