If your senior housing investment is yielding smaller margins and you’re not meeting your growth goals, you’re not alone.
According to NIC, “the total annual return for this sector has been slowly trending down since mid-2014.”
The organization also reports that returns on senior housing investments have dropped from 20.37% in 2014 to 12.05% earlier this year.
While it’s true that market conditions make it challenging to increase ROI for your portfolio, there’s another equally important factor.
Across senior living portfolios, there’s an all-too-common problem that’s eating returns for senior housing investors.
In this article, we’re going to reveal what’s really draining your ROI, and the simple, but neglected, solution you can implement to increase your margins and achieve growth goals.
A Common Reason for Subpar Returns on Your Senior Housing Investment
Low quality care.
There’s a number of reasons for poor ROI on your senior housing investment.
At Bild & Company, we’ve seen one common problem plague portfolios over and over again—staff turnover.
When senior living communities hire team members responsible for generating top-line revenue, many times, these individuals are inadequately trained or come from a background unsuitable for driving growth, such as social work.
The result is a poor fit for your communities and staff turnover.
Turnover causes your senior living organization to pour valuable resources into finding and training new team members and distracts your communities from focusing on revenue opportunities, creating a lose-lose situation.
The good news is there’s a simple fix…
The Simple Solution for Staff Turnover You Shouldn’t Neglect
Reducing turnover and increasing ROI for your senior housing investment isn’t about better compensation, employee engagement strategies, or anything like that.
In fact, there’s a simple solution that’s often neglected: don’t hire the wrong team members to begin with.
Solving your occupancy challenges starts with ensuring your properties…
- Examine the credentials and background of potential team members.
- Vet candidates to see if they’re the right fit for each community.
- Select the most qualified team members to drive revenue for your portfolio.
Keep reading to get your next steps on implementing this simple fix so you achieve better top-line revenue.
Increasing Top-Line Revenue—What You Need to Do
To empower your senior housing investment to perform at its potential, here are a few solid tips to help you work toward a solution…
- Dig into the numbers. It’s time to pull the metrics on your senior living organization both regionally and at the site level. Analyze the churn rate for your regional managers, executive directors, directors of sales and marketing, sales counselors…anyone who’s responsible for driving revenue and increasing move-ins.
- Expect pushback from your senior living management team. When you start digging and present your findings to the C-suite overseeing your properties, don’t be surprised if you experience pushback. Your data may unearth emotional attachments, defensiveness, and wounded egos, but don’t let this stop you from pushing for accountability and a solution.
- Bring in outside expertise. When it comes to improving ROI, it’s unlikely you have the time or niche expertise to find qualified team members that will grow—not deplete—ROI. Maximize your time and the resources of your senior living management company by finding a strategic partner who can quickly implement an effective solution.
When you need comprehensive support for lowering staff turnover—and improving your returns—rely on Bild & Company.
Our team of experts specialize in increasing top-line revenue for senior housing properties, and we understand the connection between staff turnover and a poor return on your investment dollars.
To solve challenges like yours, we specialize in finding ideal talent for individual properties…and we’ll soon roll out a platform to streamline how you find qualified team members.
To learn more about our customized solutions and platform, we’re more than happy to talk with you and your fellow investors.
Simply contact us online, or call us 1-800-640-0688 and ask for Liz Simpson to schedule a time where you and your team can discuss growth goals with our CEO, Traci Bild.