The senior housing industry is set to explode in the coming years as increasing numbers of Baby Boomers continue to live healthier, longer lives. The Carlyle Group projects that the number of Boomers 65 years and older is expected to be over 72 million by 2030, a huge increase from the 40 million today.
Clearly, these numbers spell out a need for proper accommodations for single or widowed seniors, grandparents and great grandparents. In fact, real estate investor Blackstone expects senior housing demand to grow by 50 percent during the next 10 years. This growth equals huge opportunity in the senior housing industry.
Senior property managers that are active in the preparation and property valuation stage will likely pore over site evaluation, benchmark against other properties, check lien data and know the local demographics. These are the key steps to take to minimize the risk of senior property acquisitions. Your team must be innovative in the way they plan, own and operate senior communities.
Let’s take a look at a few areas of key importance to senior housing property directors to help minimize the risk of property acquisitions, and accelerate the success of senior housing growth.
Develop Site Evaluation Criteria
Your team's internal selection criteria can help you better evaluate your site fit, especially if you’re looking to maintain consistent standards across all locations. Some of these location points may be among your location criteria when evaluating prospective sites:
- Near main roads or major thoroughfares
- Near local grocery and retail stores
- Near other social public places for seniors, like public libraries, museums, shopping malls, veterans clubs and similar organizations
- Near local transportation options — bus route stops, subway lines (if any), gas stations, etc.
- Near parks, grass, trees and nature for exercise opportunities
These site-location criteria can also help with bench-marking with other companies. Having a consistent site criteria evaluation process can help your company stay compliant with ADA Standards for Accessible Design.
Dig Deep for Property Lien Data
Accessing current tax lien data on large commercial properties is critical for your business. This data is where senior property managers can uncover whether or not a property owner has paid their taxes. If they have not, tax collectors can auction the unpaid taxes to the highest bidder, and through this auction, your team could get the opportunity to purchase a tax lien.
Counties issue tax liens, so you'll have to look for tax liens in a specific county. You may find that budget-strapped counties may be more flexible than other counties in selling tax liens to investors. It’s up to property directors to have the right information to avoid headaches after property acquisition.
Use Neighborhood Demographics to Better Serve Clientele
Knowing how many senior citizens are in any given neighborhood is critical for business growth. Are you choosing locations with mixed ages and changing demographics? Or are you aiming for a predominantly older area of the city or town?
The type of approaches favored by senior properties are in transition, according to the latest senior housing industry reports. Property directors are seeking to reach the largest senior demographics by offering choices and experiences to active seniors versus those who need home care attention. By concentrating on the person and their needs, rather than focusing solely on demographics, property directors of senior communities can be a better partner for its tenants and give the seniors more of what they want and need, including:
- A wide range of senior activities
- Personal attention by staff
- Appealing food offerings and meal times
- A variety of housing models — shared apartment or condo, for example
- Connection with the community members
Get the Right Property Valuation
Having the right property valuation data helps you make a fair bid for a property. Make sure you know the market analysis and market data, property assessment collateral evaluation, conventional appraisals and appraisal reviews. Additionally, your team can check complete details about tax status and assessment details, open mortgage liens, including assignments, releases and subordinations.
Opportunities exist for property managers to source and explore the right locations for their next senior community. You can find the right property valuation information you need with DataTree. Our database will provide you with estimated high and low values, final value, and value ranges and confidence levels.
Put our real estate database to work for your business or contact DataTree for a customized data solution for all the pertinent real estate information you need.