If you’ve made the choice to invest in a senior living development…
Perhaps it was the allure of robust senior housing returns that led to your decision.
While it’s true that developing a senior living property can yield a significant ROI, make no mistake.
Senior housing returns don’t happen by magic.
Don’t get us wrong.
We know you’re probably a savvy investor, and you’re not expecting instant results. After all, if you have a background in developing real estate properties, you understand that profit margins depend on a number of variables.
However, you may be relying on your pre-decision research for your future success.
In this article, we’ll explain why you’ll need more than the absence of competitors, a good location, or strong demand if you want to ensure your new development generates robust gains.
The Potential of Senior Housing Returns
There’s a reason you hand-selected your new senior living development.
Maybe you found a prime geographic area to attract the 55+ crowd…or you can offer a senior living experience few in the local area can.
And perhaps you’ve analyzed market reports on senior housing returns.
For instance, in Q4 of 2017, NIC reported that senior housing properties were only outpaced by industrial properties when it came to one-year annualized total returns.
According the article, senior housing surpassed apartments, hotels, and other real estate properties.
A report like this can bolster your confidence.
The hard numbers reveal what you knew all along—your new development has enormous potential.
But here’s what you need to realize about senior housing returns…
Pitfalls for New Senior Living Properties
Even though you’ve invested in a strong market niche, you can’t count on robust profit margins.
At Bild & Company, we’ve seen senior living properties falter soon after opening…simply because they lacked the key to senior housing returns: a growth infrastructure.
Before a bulldozer ever crosses your land, you need a structure in place that will…
- Leverage your community’s competitive advantage.
- Incorporate strategies that build awareness for your property.
- Establish proven systems to convert prospects into residents.
Assessing Your Senior Housing Development
Now is the time to see if you’re set up for success in 2018.
Consider if you have the growth infrastructure that generates strong senior housing returns, and take a few moments to consider the following questions:
- Do you know and can you explain your community’s competitive advantage compared to other properties in your region?
- Do you have qualified talent in place, who can take ownership of filling up your apartments?
- Do you have the necessary training resources to onboard new hires and equip them to drive occupancy from day one?
- Do you have an overarching strategy for engaging the surrounding community and showcasing your property?
- Do you have a systematic process to turn lead generation efforts into move-ins?
During development, it’s easy to focus on construction, financing, and other important tasks.
But if you want to achieve above-average senior housing returns, you’ll need to think about occupancy long before your grand opening.
At Bild & Company, we know exactly what it takes to avoid a beautiful building with empty beds.
Our team of senior housing experts can help you create an occupancy strategy—so you’re ready for success when your doors open.
If you’re opening a new development, be sure to reach out online, and let us know how we can target our support to meet your needs. Or feel free to give us a call at 1-800-640-0688.
Together, we’ll give your property the infrastructure it needs to meet your growth goals!