How to start a sober living home: the house, the rent and the rules
How to start a sober living home: the house, the rent and the rules
A sober living home is housing first. Residents live together, follow house rules and pay their share. This guide covers what an owner has to settle before the first resident moves in: the level of support, the state rules, the referral law, and how the money is kept straight.
It is general information, not legal advice. Rules change by state and city, so check yours with a local lawyer before you sign anything.
1. Decide what kind of house you are running
The National Alliance for Recovery Residences (NARR) describes four levels:
| Level | Name | How it runs |
|---|---|---|
| I | Peer-run | Residents run the house democratically |
| II | Monitored | A senior resident appointed by the owner serves as house manager |
| III | Supervised | Trained staff and weekly structured programming |
| IV | Clinical | Peer staff plus professional staff, with clinical addiction treatment added |
Going to a higher level changes your staffing, your costs and possibly your licensing. If the house provides treatment, it is no longer only housing, and your state may regulate it differently.
2. Find out what your state requires
There is no single national rulebook. Start with your state's behavioral health agency and ask whether recovery residences are certified or licensed, and whether certification is required or voluntary.
Florida shows why this matters even where certification is voluntary. Its certification program is optional, but a licensed treatment provider may not refer to or accept referrals from a residence unless it holds a valid certificate and is managed by a certified administrator. With limited exceptions, an uncertified house there cannot take referrals from licensed treatment providers.
3. Never pay or take money for referrals
This is the rule that can end a business. Federal law, 18 U.S.C. § 220, makes it a crime to knowingly and willfully pay or receive kickbacks for referrals to recovery homes, clinical treatment facilities or laboratories when the services are covered by a health care benefit program, such as private insurance, Medicaid or Medicare. The penalty is up to $200,000, up to 10 years in prison, or both, for each occurrence. The law has exceptions, such as certain payments to employees.
Have a lawyer read any deal that pays a marketer, a treatment center or a lab, even if it looks like an ordinary fee.
4. Check the Fair Housing Act before you write your rules
The joint statement from the Justice Department and HUD on group homes lists drug addiction and alcoholism as possible impairments and excludes current illegal drug use. Ask your lawyer how this applies to your zoning, your application and your house rules, and how to handle a request for a reasonable accommodation.
When you advertise, describe the house and the room, not the people you want living there.
5. Put the agreement in writing
Each resident should sign one agreement that states:
- the room and the shared areas
- the amount, the due date and what it covers
- the house rules, including sobriety rules and testing if you use it
- what happens if someone relapses or breaks a rule
- how and when someone must leave
Whether a resident counts as a tenant depends on your state. If they do, you may need to follow the normal eviction process even when your house rules say otherwise. Ask before you need to know.
6. Keep the money simple enough to audit
- Give every resident their own account, with charges and payments listed by date.
- Record every cash or check payment on the day it arrives.
- Stop charging on the day someone moves out, and keep what they still owe.
- If a family member or an agency pays, send the receipts to them.
Some sober homes charge by the week. Decide this early, because it affects your agreement and your tools.
7. Keep a file per house
Keep alarm and fire extinguisher checks, repairs, house rule changes with the date residents were told, and any certification paperwork together for each house. An inspector or a certifying body will ask for them.
Where Rentology fits
Rentology handles the housing side. A house counts as one property at the normal plan price ($149 a month covers up to 3 properties), plus $6 a month for each room with its own lease. Rent is created monthly, so it suits homes that charge by the month. Residents can pay by bank transfer, and cash and checks are recorded by hand. Someone other than the resident can pay through one private page with no login or app.
Rentology does not handle care documentation or care-home licensing records. You can try it free for 14 days with up to 5 houses. See also what to look for in rent by the room software.