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3 Common Mistakes to Avoid When Starting a Group Home

June 21, 20254 min read

Starting a Group Home: What to Know Before You Begin

Starting a group home is one of the most impactful ways to serve vulnerable populations while creating a purpose-driven, sustainable business. But too often, well-meaning providers run into preventable setbacks that stall progress, drain resources, and derail their mission.

In this guide, you’ll discover the three most common mistakes people make when starting a group home—and how to avoid them so you can build with clarity, confidence, and long-term success.

Ready to start strong and skip the trial-and-error? Join the Command The Land Challenge today and launch your group home the right way—on purpose and with a plan.

Mistake #1: Skipping Licensing and Zoning Research

One of the biggest mistakes in starting a group home is diving in without understanding local licensing and zoning laws. Every city and state has specific requirements regarding:

  • How many residents you can serve

  • What type of care or supervision you can provide

  • Whether your home qualifies as a residential care facility or supportive housing

Failing to meet these guidelines can lead to fines, forced closures, or legal action.

How to Avoid It:

  • Contact your local Department of Health or Human Services for group home requirements

  • Speak with a zoning officer to confirm the home’s compliance

  • Consider joining local provider associations or attending training workshops

Operating without proper authorization can harm your mission before it begins. Lay the groundwork the right way.

Mistake #2: Choosing the Wrong Property

When starting a group home, location and layout matter more than you might think. A home that isn’t safe, accessible, or welcoming can affect both the quality of care and your occupancy rate.

Common property issues include:

  • Multi-story homes with no ramps or stair lifts

  • Too few bathrooms or shared spaces

  • Lack of fire safety systems (e.g., sprinklers, fire exits)

How to Avoid It:

  • Choose a one-story or ADA-friendly home

  • Ensure the space meets health and safety codes

  • Invest in light renovations to make rooms feel warm, not institutional

Your group home should feel like a home, not a facility—especially for seniors, veterans, or individuals with disabilities.

Mistake #3: Underestimating the Need for Systems and Staff

Even with the right home and licenses, a group home will fail without proper staffing and systems. Many new providers hire just enough help to get started—but not enough to sustain safe, high-quality care.

Signs of poor operational planning:

  • Caregivers are overworked or untrained

  • There's no documentation of services or medications

  • Family communication is inconsistent

How to Avoid It:

  • Hire enough staff to maintain a healthy caregiver-to-resident ratio

  • Use digital tools to track care plans, shifts, and compliance logs

  • Schedule weekly updates or family calls to build trust

When starting a group home, think long-term. Sustainable systems protect your residents—and your reputation.

Build With Purpose, Avoid Pitfalls

Starting a group home can be a life-changing venture, but only when it's done with vision, preparation, and care. Avoiding these three common mistakes—licensing shortcuts, poor property choices, and weak operations—sets you up for real success. Remember, you're not just opening a home—you’re building a safe haven for people in need.

Step Into Your Purpose with Faith-Based Housing

If you feel called to provide safe, supportive housing to those who need it most, don’t wait. Join the Command The Land Challenge to learn how to start your own group home, avoid costly mistakes, and fulfill your mission with faith and strategy.

Frequently Asked Questions

  1. How many residents can I serve in a group home?

This depends on your state and local zoning regulations. Most allow between 4 and 12 residents per home.

  1. Do I need a medical license to run a group home?

Not necessarily. Many group homes are non-medical and only require basic caregiving. However, some states require an administrator’s certification or special licensing.

  1. Can I use a rented property for my group home?

Yes, but you’ll need the landlord’s written permission and ensure the home meets zoning and licensing standards.

  1. How much money do I need to start a group home?

Start-up costs can range from $50,000 to $150,000+, depending on renovations, staffing, licensing, and marketing needs.

  1. What kinds of residents can I serve?

You can serve seniors, veterans, individuals with disabilities, or adults with mental health needs—depending on your licensing type.

Key Takeaways

  • Licensing and zoning are essential first steps in starting a group home

  • Your property must be safe, accessible, and welcoming

  • Strong staffing and systems are the backbone of quality care

  • Avoid common pitfalls by researching and planning thoroughly

  • Join the Command The Land Challenge to launch with purpose and profit


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