Care Home Economics

Occupancy, fee rates, staffing costs and operator strength

A care home is valued as a trading business on the sustainable profit it produces, not on bricks and mortar alone, and that changes how you appraise one. This book is the numbers book of the series. It explains the figures that matter, including occupancy, fee rates, staffing costs and the strength of the operator, and where to find reliable care data for free when the deepest datasets are expensive. You will learn why building income on beds rather than residents is the commonest way to lose money, and why a care home's list of costs is longer and heavier than in almost any other property strategy. The appraisal is then stress-tested for what happens when things go wrong. A complete illustrative appraisal brings every principle together, and the final chapter gives you a repeatable way to appraise a home, along with the legal questions it cannot answer. Next in this series: “CQC, Operators and Whole-Asset Risk”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.