For the past 5 years I have written a social media post/email around new year saying why I think the next year is the perfect year for property investors to get involved in supported living. So what do I think this year?
Originally when I started posting about supported living I was having to explain the benefits of supported living and to be honest I had a hard time convincing a lot of property investors who were sceptical at best.
With the upcoming Renters Rights Bill I am seeing property investors who are concerned about having private rental tenants and who are now looking to lease property to supported living providers as a way to mitigate risk and to protect themselves. I am seeing property investors looking for long term social impact and who value their time and want hands-free long-term investment all realise that leasing property to supported living provider can help them achieve this.
What I have seen on social media over the past 18 months has been interesting, I have seen a complete about turn; almost every property investor seems to be becoming interested in supported living, but what I am seeing is scaring me. I am seeing so many posts from people who do not understand what they are doing. Suddenly their social media bio says that they are a “supported living property investor”, “supported living developer” or “supported living specialist” or that they “connect property investors and providers together” but so few of these people actually understand what they are doing.
I am seeing property investors jump on the band wagon and this is to be welcomed, there is still a huge need for supported living property, it can be such a powerful way to hold property for the long term, often creating higher net income while creating homes for those who really need them, but what I am seeing does concern me. I am seeing property investors dive head first into this strategy without realising the complexities, they do not know the challenges around finance, around insurance, or how to piece together the right providers to create a set up that will be compliant and will ensure that funding is in the place in the future. They do not understand how new legislation will affect supported living and I see so many new “experts” who are giving in accurate advice.
I see people posting in the new deal sourcing groups that are springing up everywhere “rent to rent to supported living opportunity” “R2RSL” or my favourite “property perfect for either R2RSL or R2RSA” (surely both supported living and serviced accommodation have different requirements?!) I see people posting property that is being jumped on, not by actual providers but by those who “know a provider” and will charge you a fee for introduction but not allow you to know the provider before you sign up to their legal contract and fees.
I am also seeing a rise in the number of people using supported living as a way to scam people, to charge crazy fees for unsuitable property, to charge for connections to poor quality providers and I am also seeing a lot of "guarateed rent investment schemes".
Please be careful!
Yes, I passionately believe supported living is a powerful way to invest in property in 2025 but please PLEASE make sure you are informed and you know what you are entering into. Getting this wrong puts you and your property business at risk of losing money, but it can also have devastating outcomes for your tenants too. In 2024 I was approached more and more by property investors who lost a lot of money, who believed the “guaranteed rent” promises others made them. This can be avoided if you take some time to understand supported living, how it works, how it's funded and who you are working with.
If you are a provider looking for property, please be aware of who you are working with and make sure you are not being charged crazy fees for finding you a property.
Yes, I hear you say, but she’s only writing this article as she has a vested interest, you are right I have created The Supported Living Property Network, a community of property investors and providers who come together to connect directly, to learn how to create compliant quality supported living homes but membership is only a very modest £47.50+VAT a month, (you can cancel anytime just give us 14 days notice). I could be making a lot more money charging sourcing fees, but I wanted to create something different, supporting all involved in supported living and trying to raise standards and create change. Yes, obviously you can do it alone, but you are welcome to save yourself a lot of time, fast track yourself by joining us and make sure you get involved in supported living in the right way in 2025. Find out more here
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