Opening a Recovery Home: A to Z
Ever wondered how to open a recovery home?
Explore VSL’s guide to opening your own recovery home, from A to Z!
Opening a new recovery home is a rewarding opportunity to provide individuals in recovery with a safe, structured environment to rebuild their lives. This guide offers practical steps to help you navigate the process—covering everything from financial planning to property selection and home setup.
At Vanderburgh Sober Living (VSL), we’re committed to supporting recovery-focused communities. As a trusted resource for operators, VSL provides the tools, mentorship, and expertise needed to simplify the journey of opening and managing a successful sober living home.
Are You Ready to Open a Recovery Home?
Before even starting the process of opening a recovery home, answer a few key questions to set yourself up for success:
- Why do you want to do this?
Reflect on your motivations—whether personal experience, a passion for helping others, or a commitment to your community. Ensure your goals align with the dedication needed for this impactful work. - Have you done your research?
Understand local laws, target population needs, and required resources. Consult experienced operators, attend meetings, and seek legal and financial guidance to prepare thoroughly. - How much time can you invest?
Running a recovery home requires significant time and energy. From daily operations to emergencies, be realistic about the commitment involved and your capacity to manage it effectively.
Financial Considerations for Starting a Recovery Home
Starting a recovery home involves a range of upfront and ongoing costs that require careful budgeting to ensure long-term success.
Upfront Costs
Expenses will vary depending on the property’s size, location, and condition, but key costs include:
- Property acquisition or leasing (down payment, mortgage, or rent)
- Renovations to meet safety and building codes
- Furnishings and equipment, including appliances
- Insurance and inspections
- Utilities, landscaping, and maintenance
Additionally, compliance with NARR 3.0 Standards—including a range of standards and expectations from emergency evacuation plans to developing compliant policies and procedures—can add to the setup costs.
Ongoing Costs
Once the home is operational, factor in recurring expenses such as:
- Lease or mortgage costs
- Utilities
- Repairs, and maintenance
- Drug screening supplies
- Insurance expenses
- Marketing materials
Simplify Costs with VSL Leasing
Leasing a home through Vanderburgh Sober Living can reduce the burden of upfront expenses. VSL-affiliated homes include:
- Furnishings and appliances
- Full site inspections and maintenance plans
- Comprehensive floor plans and exit plans
Do You Have Funding?
Starting a recovery home requires a reliable financial plan to cover key expenses like real estate, licensing, insurance, staff salaries, and operational costs. With expenses adding up quickly, it’s essential to secure funding through grants, loans, or investors and create a realistic budget to track spending.
If you’re not ready to make a full investment right now, Vanderburgh Sober Living offers pathways to ownership through our Contract Operator Program, allowing you to earn your way to operating a sober living home—contact us at [email protected].
Choosing the Right Property
1. Site Search
Choosing the right property is critical to the success of a recovery home. The ideal location should be safe, quiet, and close to public transportation, healthcare, and other amenities. Conducting an area survey can help assess the need for a sober house in the community and evaluate local competition.
Need support? VSL works with Operators to conduct area surveys and partners with mission-driven real estate developers to identify ideal properties.
2. Initial Site Inspection
An initial site inspection is the first step in evaluating a property. This tour occurs before a comprehensive inspection and ensures the property meets basic criteria for use as a recovery home.
Need support? VSL’s facility experts assist in conducting thorough inspections to ensure the property is a strong fit for your needs.
3. Potential Site Analysis
To determine a property’s feasibility, data such as bed capacity, utility estimates, and projected expenses must be gathered and analyzed. Tools like VSL’s Sober House Financial Calculator can assess viability by creating detailed income and expense projections, along with startup cost estimates.
Need support? VSL leverages years of operational data and proven analysis tools to help you make informed decisions about potential homes.
Home Leasing Opportunities
Acquiring the right property can be a significant challenge when opening a recovery home. VSL simplifies this process by connecting operators with impact-focused real estate investors, streamlining leasing, and removing common financial barriers.
Benefits of VSL Home Leasing:
- Access to quality, certified properties ready for use
- Partnerships with investors who align with your mission
- No upfront security deposits or renovation burdens
Learn more: Home Leasing Opportunities
Establishing Your Sober Living Business Entity
Before launching your recovery home, it’s essential to establish a solid business foundation to ensure legal protection, financial organization, and regulatory compliance.
Key Steps to Establish Your Business:
- Form a Legal Entity: Choose a structure such as an LLC to protect personal assets and simplify operations.
- Set Up a Business Bank Account: Keep personal and business finances separate to maintain clarity and compliance.
- Consult a CPA: Work with an accountant familiar with small businesses and recovery homes to manage finances and taxes effectively.
Need assistance? VSL offers dedicated support to guide you through the business entity formation process. Learn more on VSL’s Knowledge Base: Business Entity Management.
Access more resources by joining the VSL Community
Vanderburgh Sober Living is committed to providing operators with the tools and insights needed to build thriving, recovery-focused communities. As a chartered operator, you’ll receive advanced resources, mentorship, and ongoing support to help you grow and make a meaningful impact.
Vanderburgh Sober Living’s Knowledge Base
Our full knowledge base dives deeper into the essential steps of opening and operating a recovery home, with practical guides on topics like property selection, inspections, and financial planning. These resources are tailored to support your success, whether you’re just starting out or looking to expand your operations.
Become a VSL Chartered Operator
Our mission is to support recovery-focused sober living communities by providing resources, tools, and mentorship to independent operators. Becoming a Chartered Operator with VSL connects you to a network designed to help you succeed. Benefits of a VSL Charter:
- Access to proven resources and operational tools
- Ongoing mentorship and quality assurance support
- Certification guidance to meet industry standards
Learn more: Visit Our Operator Community Page. The Vanderburgh Sober Living website is more than just a resource—it’s a hub for sober home operators to connect, grow, and thrive. Explore tools, best practices, and real-life success stories that help operators build strong recovery-focused communities.
Ready to take the next step? Learn more about Vanderburgh Sober Living’s charter program—the first for NARR Level II sober homes in the United States—and take the next step toward building a recovery home that changes lives.