Start a Retirement Home in Ontario

As Canadians live longer lives, the population of seniors is rapidly growing, and they’re looking for ways of making their retirement years fulfilling and enjoyable. If you’re looking for a profitable and meaningful business venture, starting a retirement home in Ontario is a fantastic option. Unlike a long-term care facility, a retirement home is a place where seniors can live relatively independently in a community of like-minded people. Opening up a senior care facility in Canada means dealing with a number of regulations, but don’t worry. We’re here to walk you through all you need to know to start your own retirement home in Ontario.

Steps

Setting Up Your Retirement Home in Ontario

1. Find financing for your retirement home. In general, the cost of building a retirement home in Ontario will cost about $250,000 per room, or $6.25 million for an average-sized home with 25 rooms. Finding financing for a new business venture can be overwhelming, but there’s plenty of places to turn for support. Look for co-investors among your friends and family, as well as private loans from banks. The Canadian government also offers financing options for new businesses, so be sure to look for these as well.
   • If you’re planning on building a home with at least 50 beds, you may be eligible for mortgage loan insurance from the Canada Mortgage and Housing Corporation. This program comes with a number of tools, including loan advances of up to 70% during the construction of your home. There are additional benefits available if you make the home affordable housing or energy efficient.
2. Purchase or renovate a building for your retirement home. Ontario is a region that maintains several zoning laws, so it is in your best interest to contact a real estate agent who knows local zoning rules to make sure that you can open up a retirement home at your chosen location. You may also need to get in touch with your city’s planning committee to file an application.
   • Each Ontario retirement home is different, but most offer private rooms and apartments for tenants, shared dining rooms and common areas or lounges, chapels, swimming pools, libraries, and gardens. Keep these features in mind as you design your home.
   • If you already have a property that you’d like to turn into a retirement home, it’s important to redesign your home keeping the needs of the elderly in mind. Making sure your home is well-lit will prevent falls, as will including hand-rails in bathrooms and replacing stairs with ramps wherever possible.
   • Many seniors are now looking to maintain an active life into their retirement. When planning the location of your retirement home, keep in mind what amenities seniors want to have access to. Is there access to public transportation, so that seniors can reach city centers without driving? A walking trail for seniors who want to get some morning exercise?
3. Plan what services your home will offer. All retirement homes in Ontario have to meet a few conditions in order to be licensed. In addition to being primarily occupied by people over the age of 65, your home will also have to provide at least 2 of the following 13 services:
   • Assistance with administering drugs
   • Assistance with bathing
   • Assistance with dressing
   • Assistance with walking
   • Dementia care
   • Medical services
   • Pharmaceutical services
   • Nursing services
   • Feeding assistance
   • Continence care
   • Personal hygiene assistance
   • Meal services
   • Skin and wound care
4. Apply for proper licensing. Under the Retirement Homes Act of 2010, all retirement homes must be licensed by the Retirement Homes Regulatory Authority. You’ll need to include several documents with your submission to the RHRA, including a Fire Safety Plan, a Municipal License, and a pre-opening Public Health Inspection Report, among other documents.
   • Regulations for retirement homes are strict. Even if you’ve operated a home with a license in a province outside of Ontario, you’ll need to reapply for a new license with a new home. If you’re purchasing an already licensed retirement home, you’ll still need to apply for a new license, since the home will have a new owner.
   • You don’t need to wait until the home is completely finished to apply for a license. You can start the process while your home is still being built or remodeled, which can save you some crucial time in those first few months of operation.
5. Register your business. The Ontario Business Registry is fully functional online and operates 24 hours a day. Visit their website and follow their instructions to register your retirement home. This will also give you access to a Canadian business number and other information necessary for tax filing purposes.
6. Hire a full staff of qualified professionals. Once your home is ready-to-go, you’ll need a team of competent and professional employees to help you run it. The size and composition of your staff will differ depending on how large your retirement home is, as well as what services you plan on offering. But some crucial positions you may need to fill include:
   • The home manager: this person will take on the responsibilities of your home’s day-to-day operations. They’ll be interacting with residents and their families, and making sure that the home is in alignment with your vision as the owner. They may also be responsible for hiring and recruiting additional staff for your home.
   • Caregivers: these employees come from a wide background of experiences, and are responsible for attending to the needs of your residents. Employing caregivers with medical-care backgrounds, such as home health aides, is crucial to making sure that your retirement home is successful.
   • A marketing manager: this manager can be a great asset as you work on growing your business and filling your rooms. They can help you improve your web presence, host open houses, and increase your name recognition in the community.

Growing Your Retirement Home in Ontario

1. Create a business plan. When starting any business venture, having a clear idea and timeline for the future of your business is crucial. What goals do you have for your retirement home in 1 year? 5? How can you meet these goals? Address all these questions, as well as solutions for any challenges you might face, in a clear and informative document.
   • A good business plan is important for getting investors interested in your retirement opportunity. Most investors are wary of commitments that are too long, so what returns can you offer them within 3-5 years? Keeping questions like this in mind is critical to securing as much investment interest as possible.
2. Establish an online presence. Many seniors and their families are active users of social media, so you should set up pages on Facebook and other sites as soon as possible. Post plenty of photos of your retirement home and its amenities to catch the interest of people who might stop by your page.
   • You should also consider starting a website for your retirement home. This can make your business seem more professional and enticing to potential residents. Contracting a web designer can help make your site really stand out, and can help you add virtual tours and other marketing tools to your online presence.
3. Market your retirement home offline. In addition to an online presence, you’ll also want to find ways to reach out to the community directly. See if your local community centers have any opportunities for advertising, or post flyers around the area for an open house. Putting out an ad on the radio can also help you reach seniors who might not use the Internet quite as often.
   • Working with an experienced marketing manager can simplify this process for you. Ask them what strategies they think would be most effective for reaching out to the community, and share your own ideas with them as well.
4. Be mindful of regulations for operating your home. Follow the rules set by the Ontario government for running a retirement home, so that you can make sure your business doesn’t run into any legal trouble. Understand policies on topics like:
   • Health inspections: for long-term care homes, an annual review is required, which may involve unannounced inspections by officials from the Long-Term Care Home Quality Inspection Program.
   • Landlord responsibilities: since your seniors are legally regarded as your tenants, you should be aware of policies regarding your rights as a landlord, and their rights as tenants. Be mindful when raising the cost of rent to not overstep your legal ability to do so.
   • Personal and health information privacy: as the owner of a senior-care business, you will likely have access to confidential information on your tenants and their health. Treat this information with care, and follow confidentiality guidelines set by the law.
5. Keep your seniors satisfied. When you start welcoming your first residents, you’ll soon realize that one of the best ways to grow your community is through word-of-mouth referrals. But in order for that to happen, you’ll have to make sure your seniors are satisfied. Make a habit of asking your residents for feedback, and communicate with them directly about what you can do to make their time in your home even better.

Tips

• There is a massive demand for retirement homes that are catered toward certain immigrant communities. Many seniors prefer living with others who come from the same country as them so that they can communicate with greater ease. Consider targeting your retirement home toward one of these communities, and targeting your meal services and entertainment options accordingly.

References

See also

• Make a Retirement Gift Basket
• Know How Much to Give for a Retirement Gift
• Make a Retirement Scrapbook
• Use Life Insurance in Your Retirement Planning
• Transfer Retirement Funds to a Roth Ira
• Retire from a Job You Love
• Prepare for Retirement in Your 20s
• Prepare for Early Retirement
• Plan for Long Term Care
• Know if You Are Old Enough to Live in a Retirement Community

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