What is The Golden Girls Model?
When we talk about The Golden Girls, we are not talking about the TV show from the 80s, however the concept is very real. We are talking about the Golden Girls Model. There are a lot of people living in a home by themselves. The home is too big, has too much space, and they don’t really want to maintain it by themselves but they have to some extent. They are alone but they would much rather have friends, people they can live with. There are 2 sides to the Golden Girl Model:
- The user side, the person living in the home.
- And the Business side, the opportunity.
Let’s talk about the User side first.
The users are the people living in the home. When the user makes a choice to share a home with others there are many things to consider. Number one is that they want to be with people they get along with, that they like the location and the home. And they need to consider who owns it or is in control. Being able to get out to events or amenities is also important. Going to the library, the senior center, grocery store, movie theater, a shopping mall, a restaurant or other cultural events or activities. So transportation is important. The closer you are, the more convenient it will be. Are these things within walking distance, do you have or need access to public transportation, or do you have your own vehicle? They want to continue living their life as independently as possible. We are talking about a group usually all women or all men, there are no caregivers, cooks, or housekeepers. They generally have a private bedroom but may share bathrooms, living room, kitchen, shared porch or deck, and maybe they share the garage or driveway. This is true independent living.
What about the business side?
Let’s say that you have a three bedroom, two bath home for rent, You may normally rent the entire home out to a single family for $2,000 per month. They pay their own utilities etc. A typical family may rent a home for one year then move on. But if you look at the Golden Girls Model, You could rent it out by the bedroom and focus on seniors who want to live in that community. The would have private bedrooms and possibly a private bath or maybe half a bath. You could include utilities such as heat, A/C, water, and cable. You maintain the home and possibly charge $1500 per month per bedroom. In a three bedroom home this would be $4,500 per month instead of the $2,000 you would charge for a family. A $2,500 increase in income per month, and seniors typically live in a home for many many years.
What is the benefit for you from the Golden Girls Model?
This is a great way to cash flow your current properties, or an opportunity to purchase a nice property in a nice area to provide a different service. And someday these Golden Girls may need assisted living, which is a great opportunity to transition into a Residential Assisted Living Home.
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