How to Start a Sober Living Home: You're in the Admissions Business (w/ Darrell McCollough)

Send us Fan Mail You're not in the sober living business — you're in the admissions business. Darrell McCollough, founder of Start a Sober Living, opened his first house during the pandemic, filled 20 beds at about $1,700 a bed, and hit roughly $34K a month with a waiting list. In this episode, he breaks down what it actually takes to run a sober living home, for rent-by-the-room and co-living investors who are curious about the model. We cover: • Where sober living residents actually come from: reentry, referral sources and aggregators • Why you have to "follow the flow of money" before you buy a house • Why your power is in screening, and setting house rules before move-in • What a house manager really does and costs, and why you don't hire "Uncle Pete" • Sober living, HOAs and the Americans with Disabilities Act • Oxford House vs. operating it yourself • Why this is NOT passive income • The top 4 states for sober living, and operators charging $10K a bed Darrell also shares the lens he brings as someone 17 years in recovery, and why that shapes how he builds programs that keep residents. Chapters 00:00 You're in the admissions business 00:17 What to expect in this episode 00:59 From rent-by-the-room to sober living 02:10 Darrell's story: $34K a month in the pandemic 08:34 Where the demand comes from 13:07 Aggregators: go upstream to find residents 15:23 Build a program so good they tell on you 18:26 Follow the flow of money 22:22 Your power is in screening 24:29 Don't hire Uncle Pete: the house manager 28:11 Sober living, HOAs and the ADA 31:57 What a house manager actually does (and costs) 35:54 Curfews and drug testing 38:41 First house vs. third house 43:09 Why sober living vs. any other exit 44:54 This isn't passive income 48:23 Oxford House vs. operating it yourself 49:45 What makes Darrell's coaching different 53:53 $10K beds and the top 4 states 57:08 Wrap-up and where to find Darrell Connect with Darrell Start a Sober Living, with a free webinar every Thursday: https://startasoberliving.com Own a rental or co-living property that isn't performing? Book a Business Assessment with Quentin: https://colivingiq.com Results discussed are the guest's own experience and are not typical or guaranteed. This episode is educational only and is not legal or financial advice.