Senior rental housing is a niche that demographically is set to grow significantly over the next decade. As with other segments of multifamily housing, new supply has been restricted. Without services (food, activities, transportation) it is primarily a target marketing lifestyle niche. The introduction of services, starting first with social activities) and then with food service increases the value to the point where rents are 2X traditional multifamily properties, but come with it very high labor costs and operational intensity. The unique drivers in this segment are the extraordinarily long leasing cycles and the complexity of multiple family members in decision making, and single family housing values (which are often used to create an “endowment” to partially fund rental payments).
Independent Living is a sub-segment within the senior housing niche, in that it fills a need when the burdens of maintaining a house are too much, and while the senior still maintains sufficient good health to not require round the clock assistance with the activities of daily living. We identified and realized significant revenue potential in floor plan/unit level price segmentation, as well as salesforce management tools (call recording and tracking), and unit turn production standards in support of the re-leasing of portfolios at significantly higher price levels after the 2009 recession.