Residential Care Homes,
A Senior Housing Phenomenon

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Residential Assisted Living Homes 101

Based on research from the U.S. Department of Health and Human Services, an estimated 70% of people over age 65 will require some form of long-term care during their lifetime. Fidelity reports that a 65-year-old couple retiring in 2019 could expect to spend $285,000 on long-term care costs during retirement.

A Residential Assisted Living Home (RAL), sometimes called a Residential Care Home, is a home licensed by the state to provide non-medical care to seniors in a residential neighborhood. It typically provides a higher level of care than a traditional large assisted living facility, but a lower level of care than a traditional nursing home setting.

Having fewer residents, a Residential Care Home has higher staff to resident ratios and can provide care on a much more personalized level, and at a lower cost point than a large assisted living center.

Senior Housing options may differ in services offered from state to state. Some homes may provide a higher level of care while others focus on the basics. Depending on your state, a Residential Assisted Living Home can care for 4 to 16 or more residents. Most Residential Assisted Living homes offer private and semi-private rooms and are predominantly private pay facilities. Many will accept long term care insurance and the Veteran’s Aid and Attendance program.

Are Residential Care Homes In Demand?

With over 10,000 seniors turning 65 and 4,000 seniors turning 80 per day in America, there is a current and growing need for residential assisted living homes. Residential assisted living homes vastly outnumber the larger assisted living facilities in many cities and states.

What Kind Of Assistance Is Offered In Residential Care Homes?

The typical Residential Care Home resident is a woman in her early 80’s who needs assistance with her Activities of Daily Living (ADL’s). According to The National Center For Assisted Living, the most common activity of daily living that residents need assistance with are:
Bed Transfer
Assistance with Feeding
The common conditions in the homes include:
High Blood Pressure
Alzheimer's or Dementia
Heart Disease

Who Provides The Care In Residential Assisted Living Homes?

The care in your home is overseen by a licensed or certified Administrator / Manager. That manager would hire a staff of caregivers to perform hands-on care to the resident.

Residential care homes provide caregivers around the clock, seven days a week. Depending on the care needs of your residents, Majestic Residences usually hires 1 caregiver to 5 residents. A typical home would have 1 to 2 caregivers during the day and evening and one caregiver overnight.

How Long Does The Average Resident Stay In These Homes?

The average median stay is approximately 22 months, roughly 40% of residents will move out of assisted living to transition to a skilled nursing center.

How Do Franchisees Find Residents For The Home?

Finding seniors to live in the home can be challenging without a proven system. Fortunately for Majestic Residences franchisees, our team are nationally known experts in Franchising, Real Estate, Assisted Living Marketing, and Operations. We teach our franchisees how to market using our proprietary marketing system to healthcare professionals, insurance companies, referral and placement agencies, physicians, home health and home care companies, hospice agencies, and more.

Can A Franchisee Make A Good Living Doing This?

According to Genworth Long Term Care Insurance company, the nationwide average cost of a Residential Assisted Living Care Home is approximately $4,000.00 per resident per month. However, depending on the number of beds you can be licensed for, your occupancy, the location of your home, and your resident’s level of care, individual monthly fees can range from $3,000.00 to $10,000.00 or more per resident per month.  Due to all of our service offerings, Majestic Residences homes tend to charge $500 to $1,000 more per month, per resident than other residential care homes around them.

What Should We Learn About Next?

Residential Senior Living Home

Residential Assisted Living

The residential assisted living industry has been around for over three decades, but it's relatively new in some areas of the country.

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