What should I ask before buying an assisted living facility?

Ask about documented net operating income and the trailing financials, occupancy and rate trends over 12–24 months, staffing ratios and turnover, the license and survey/deficiency history, the change-of-ownership process, why the owner is selling, and upcoming capital expenditures.

How do I verify a care home''s income?

Get the profit-and-loss statements, the census/rent roll, and any add-backs the seller claims, then confirm them against bank records and tax returns during due diligence. Value is driven by net operating income, so this is the most important thing to verify.

What are the biggest red flags when buying a care home?

Undocumented or inflated income, occupancy propped up by recent move-ins, high staff turnover, heavy dependence on the current owner, a license with unresolved deficiencies, and large deferred maintenance the seller hasn''t disclosed.

Questions to Ask When Buying an Assisted Living Facility

In this guide

The questions that matter most
Financials and true NOI
Occupancy and rates
Staffing and turnover
Licensing and compliance
Why the owner is selling
Condition and upcoming CapEx

Key takeaways

Anchor everything to documented net operating income, not the asking price or a verbal figure.
Ask for the occupancy and rate trend, not just today''s snapshot.
Probe staffing, licensing/survey history, and the CHOW — the operational risks a house sale never has.
Find out why they''re selling and what CapEx is coming, so there are no surprises after closing.

Checklist of questions to ask when buying an assisted living facility

What questions matter most?

Lead with the ones that reveal risk: how the income is documented, how stable occupancy is, how the operation is staffed and licensed, and why the owner is leaving. A great-looking building can hide a struggling business, and a plain one can be a cash-flow gem. The questions below get you to the truth before you commit. Pair them with a full due-diligence checklist.

What should you ask about the financials?

Ask for the documented net operating income and the trailing financials behind it. Get the profit-and-loss statements, the rent/census roll, and add-backs the seller is claiming — then confirm them. Price is set by NOI and a cap rate, so this is where value lives; see the cost to buy an assisted living facility.

What should you ask about occupancy and rates?

Ask for occupancy and average rate over the last 12–24 months, not just today. A facility trending up is worth more and less risky than one propped up by a recent move-in. Ask how rates compare to the local market and when they were last raised.

What should you ask about staffing?

Ask about staffing ratios, turnover, and whether the owner is also the primary operator. High turnover or heavy owner-dependence is a risk you''ll inherit — and a facility that runs without the owner is worth more.

Reviewing staffing when buying an assisted living facility

What should you ask about licensing?

Ask for the current license, recent survey results, and any deficiencies or complaints. Then confirm the change-of-ownership (CHOW) process for your state, since you can''t operate until it''s approved.

Why is the owner selling — and what''s coming?

Ask directly why they''re selling and what capital expenditures are on the horizon. Retirement is different from "the building needs a new roof and census is slipping." Get the age and condition of the roof, HVAC, and major systems so deferred maintenance doesn''t become your first surprise.

When you''re ready to evaluate a specific facility with a specialist who knows the right questions, connect with a Buy Sell Assisted Living expert.

Informational only — not financial, legal, or tax advice.