Your deal is only as strong as the senior housing team running it.
In senior housing investing, real estate is only half the equation. The other half—the one that can make or break your investment—is the operator. Whether you’re evaluating a deal as an LP or structuring one as a GP, operator quality is the difference between consistent cash flow and chronic underperformance.
Here’s how to properly vet a senior housing operator.
Experience in the Specific Care Level
Senior housing isn’t one-size-fits-all. Running an independent living community is radically different from managing a memory care facility.
Ask:
How many years have you operated this level of care?
How many communities do you manage of this type?
Can you share average occupancy and staff turnover metrics by care level?
Pro tip: Look for operators with 10+ years in the sector and a focus on the same care acuity as your target asset.
Performance Metrics Matter
Review financial and operational track records—not just a slide deck. Dig into:
| Metric | Healthy Range |
|---|---|
| Occupancy | 85%+ (stabilized) |
| Staff Turnover Rate | Under 50% annually |
| EBITDAR Margin | 25%–35% |
| Rent Growth (YoY) | 2%–4%+ |
| Resident Retention Rate | 12–18 months average |
Ask for trailing 12-months financials and operational KPIs. Transparency is key.
Care Quality and Compliance History
Licensing issues and health code violations will destroy NOI and reputation.
Request:
Most recent state inspection reports
CMS Star Ratings (if skilled nursing involved)
Resident or family satisfaction surveys
Details of any regulatory actions or lawsuits in the last 5 years
Interview Key Leaders
Speak with the Regional Director or Executive Director of the community.
Ask:
What’s your leadership turnover rate?
How do you recruit and retain caregivers?
What’s your philosophy on resident wellness and engagement?
The best operators blend compassion with operational discipline.
Technology and Systems
High-performing operators invest in systems that drive both care and efficiency.
Look for:
Electronic health record (EHR) platforms
Automated billing and CRM systems
Staff scheduling tech
Resident engagement apps
Operators using paper charts and Excel are red flags in today’s world.
Ask About the Business Model
Not all operators are aligned with your investment goals.
Do they own or lease their properties?
What’s their incentive structure? (Watch for flat fee vs performance-based)
Will they co-invest in the deal?
You want an operator who’s motivated to maximize NOI—not just collect a management fee.
Final Checklist Before You Commit
✅ Reviewed 3+ years of operating history
✅ No major compliance violations
✅ KPIs meet or exceed market benchmarks
✅ Tech-enabled systems in place
✅ Transparent, experienced leadership
✅ Performance-based management fee structure
Partnering with Proven Operators
At Haven Senior Living Partners, we only work with vetted operators who have a strong track record, regulatory compliance, and a deep commitment to both resident care and NOI growth. Our current portfolio includes operators with 95%+ stabilized occupancy and 20+ years of leadership experience.
Contact Us to learn more about how operator excellence protects your investment.
