163. Forget Everything You Know About Sober Living Homes - Interview with Devana Cavé

14 Aug 2025 · 58 min · 23 chapters

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In short

Devana Cavé explains how she operates four sober living homes, arguing that “forget everything you know” about typical sober living facilities by using bright, renovated single-family houses, strong hospitality, and structured accountability to improve retention and outcomes.

Guest background

Devana entered sober living after family members struggled with addiction; she started her first homes in 2014. She owns/operates four homes and uses long-term, community-based co-living with on-site house managers (often in recovery themselves).

Key claims

Her design choices (gutted, updated interiors; comfortable beds; cleanliness) reduce relapse risk and property damage; she reports no evictions in 11 years. She says connection (common spaces, shared routines) supports sobriety more than isolation. She emphasizes systems (AM/PM chores, write-ups, “red X” tracking, curfews) and a house manager as essential.

Notable examples

Wait list for 10 years; tenants staying 5–9 years; county-funded programs with time limits and potential transition to private pay; daily manager “eyes on” residents, random drug testing, and resource referrals (detox/sobering center) if someone leaves.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Devana's Journey into Sober Living

1:31 to 3:06

Devana shares her personal story that led her to create sober living homes.

“I'll turn it to you now to introduce yourself.”

Transforming Sober Living Spaces

3:06 to 5:28

Devana discusses how she improved the environments of sober living homes.

“So that's a big 180 shift from going, I don't want anything to do with anyone, you know, dealing with addiction.”

Creating a Positive Environment

5:28 to 8:12

Devana talks about the importance of a comfortable living space for recovery.

“So I guess what I'm curious about is we don't have to get into specific numbers, but like pricing wise, have you seen, we know it's short term rentals.”

Financing and Pricing Models

8:12 to 9:50

Discussion on how Devana manages pricing for sober living homes.

“They would really kind of make that their home.”

Managing Tenant Relationships

10:56 to 14:00

Devana explains her approach to maintaining harmony among housemates.

“So one question I have to ask is, I know you said you in 11 years have not had anyone trash your property.”

Understanding Accountability in Sober Living

14:00 to 16:40

Explore how accountability is structured in sober living homes and the balance between rules and personal choice.

“So they're not just out on the street that night if they leave our house.”

The Role of House Managers in Sober Homes

16:40 to 20:00

Learn about the essential responsibilities and legal considerations for house managers in sober living environments.

“I think that a house that's run really well is going to have a good manager.”

Logistical Challenges of Sober Living

20:00 to 23:20

Discover the practical setups for kitchens and laundry in sober living homes to accommodate multiple residents.

“But there's a lot of times a guy will say, hey, I have some eggs, and I have some tortillas, and this guy has this, and they kind of make a breakfast or lunch together.”

Providing for Residents: Amenities and Support

23:20 to 27:40

Understand what amenities are provided for residents in sober living homes, including food and toiletries.

“And then it sounds like craziness that everyone would be cooking, but everyone's on such different schedules.”

Managing Parking and Transportation for Residents

27:40 to 28:00

Examine the parking situation and transportation needs for residents in sober living homes.

“I will provide them with food for the first few days until they can get on their feet and get some, go to the store or something like that.”
Show all 23 chapters

Intake Process for New Residents

28:00 to 28:30

Learn how the intake process works for new residents in sober living homes.

“is that the house manager reporting to this person came with no toiletries, no food?”

Parking Challenges and Solutions

28:30 to 30:03

Discover the parking arrangements and challenges faced by residents in sober living homes.

“Yeah, we have plenty of parking at all the houses just in the driveways and on the streets.”

Criteria for Property Selection

30:03 to 33:31

Understand the factors considered when selecting properties for sober living homes.

“I'd have to think, I don't let people walk through other people's bedrooms.”

Understanding Space and Capacity Standards

33:31 to 34:50

Learn about the standards regarding space and capacity in sober living homes.

“So the national standard is from NAR, N-A-R-R.”

The Importance of Common Areas

34:50 to 37:15

Explore why common areas are crucial for fostering community among residents.

“do you have options where like someone could pay more for their own room or is it just like, this is you pay per bed and that's it.”

Managing the Waitlist for New Residents

37:15 to 39:56

Learn how new residents are selected from the waitlist for sober living homes.

“I think a lot of people think the problems that have addiction is sobriety, but it's actually connection.”

Navigating the Placement Process

39:56 to 42:00

Understand the process of placing individuals coming out of rehab into sober living homes.

“And like, what have you learned today that is a good fit for you and vice versa?”

Placement Process for Sober Living Homes

42:00 to 44:24

Learn about the process of placing individuals in sober living homes and the importance of quick turnover.

“Like a corporate stay, they'll say, I need accommodations three months from now, and you can book those in advance.”

Managing Sober Living Homes

44:24 to 47:11

Discover the operational aspects and challenges of managing sober living homes.

“That brings up a question I wanted to ask you because everyone's always talking about passive, passive investing and passive income.”

The Role of Recovery in Management

47:11 to 50:58

Understand how hiring people in recovery as managers impacts the environment of sober living homes.

“Like it's going to be where you need to be on top of your manager.”

Balancing Guest Support and Independence

50:58 to 53:54

Explore the balance between supporting residents and encouraging their independence in sober living homes.

“So they're all in different spaces of life.”

Creating a Hospitality Experience in Sober Living

53:54 to 56:00

Learn how to integrate hospitality principles into the operation of sober living homes.

“This is so different from, you know, usually what we talk about wallpaper and like crazy stuff with short term rentals.”

The Importance of Aesthetics in Sober Living Homes

56:00 to 57:08

Learn how thoughtful design enhances the experience in sober living homes.

“I lived in a sorority house and we had one fridge for like 16 of us.”
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Transcript

Automatic transcript. May contain errors.

0:00Natalie Palmer:Hello, welcome, and thanks for checking in today to No Vacancy, the podcast. I'm your host, Natalie Palmer. I'm an Airbnb ambassador and 17-time superhost, and I've hosted over 1 ,000 reservations. I'm a stay-at-home mom of two and manage my eight listings remotely. My mission is to help new and experienced vacation rental hosts turn their listings into fully booked, profitable properties that can be managed from anywhere so you too can have no vacancies. If that sounds good to you, let's get right into the show.

0:52Natalie Palmer:Hello, everybody, and welcome back to another episode of No Vacancy, the podcast. I'm your host, Natalie Palmer. Today I have on Devana Kamei. I'm super excited to talk to her. She operates and owns four sober living homes. And I'm really excited to get into this. I have so many questions for you about the operations and logistics, Devana, like where you find tenants, pricing. Obviously, you're not doing instant book. This is a totally different world than my short-term rental background and hospitality. But I talked to you before and I know that you really still do try to bring hospitality to what you're doing.

1:28Natalie Palmer:So I'm excited to get into all of this with you. I'll turn it to you now to introduce yourself. And I'd love to hear your story. This is such a unique niche within real estate investing. And I'd love to hear how you even stumbled into all of this. Yeah, thanks for having me. I'm excited to be here. So how I stumbled into this is I had a family member that was struggling with drugs and alcohol at a certain point in life and um followed him through the rehab process and going into separate livings and when i would go look at the server livings that he would stay in i just was like oh i could do this so much better this just isn't like i don't understand why they were like dingy or dirty looking or just dark inside and it just felt depressing to me.

2:17So, uh, in 2007, I had somebody that was close to me that overdosed with heroin. And, uh, again, I was like angry at the whole situation, but kind of had to have like a sit down heart to heart with myself. And I was like, you could be angry at it or you could do something to help. And, um, my kids were a little young at that age. So I waited until they got a little bit older. And then husband and I were driving down the freeway one day and I looked at him and I said, I want to buy a house. He's like, okay. I was like, but I want to turn it into a sober living. He's like, okay. He had no idea what I was going to do.

2:51Um, when I just bounced down, there was no podcast or, um, coaches or anything like that to help me. I just kind of had to like shop my boots on and figure it all out myself. And, uh, that was in 2014 now.

3:09Natalie Palmer:So that's a big 180 shift from going, I don't want anything to do with anyone, you know, dealing with addiction. I've been burned by this too, deciding that your first real estate investment would be a sober living home. So can you tell me, you mentioned that the original sober living homes and facilities you had kind of come across, the dingy ones and the dark ones that were depressing. What were those structures? Were these also single family homes where people were renting like single bedrooms, co-living what you're doing, or were these more like in a rehab facility? Like explain kind of what this world was like back in 2007.

3:47Yep. They were in 2014. Well, 2014 is when I started mine, but they'd been around for 30, I mean, probably longer than 30 years. It just wasn't like a popular thing back then. um they were single family homes and when i first started i uh kind of uh called this guy that had like 120 beds and he was not my mentor but he helped answer a few of my questions back then and he was like let's don't do anything nice don't put any new furniture and kind of go to a thrift store throw it all together because they're going to thrash it anyway and in my you know true devonna rebel style. I go against what somebody tells me to do and I have to do it my own way.

4:31And I was like, that just sounds so depressing. And that's what I've seen for all these years. It just doesn't feel to me. So I did it opposite. I, I did buy single family homes, larger single family homes. I did, I gutted them, put new everything, like new kitchens, new, I like I walk into a house and I I woke at, maybe look at a dining room and say, okay, I'm going to, I can throw a wall up here and make an extra bedroom. I can pop a doorway in here and make access to this bathroom. So I can kind of configure the house in a different way than it would be used as a single family home. It'd still be a single family home.

5:13And so I went by bright and curtsy and kind of like how you would do a midterm, I mean, a short-term rental. Like if you look at my website, it's like it's kind of bright and more designer than most sober people. So you have a downer face.

5:32Natalie Palmer:The thought process behind investing more money than your mentor had told you and like redoing the kitchen and everything, were you thinking that that was more for the healing and that that was just going to be better for somebody in sober living? Or was there any part of you? So I guess what I'm curious about is we don't have to get into specific numbers, but like pricing wise, have you seen, we know it's short term rentals. You design better, you're going to get a higher price. Is that similar here or are people kind of capped out? Is it insurance that's paying for their stay or the family? I guess I'm thinking like where when you were making these improvements, where was there like, well, this will earn me more in the end?

6:15Natalie Palmer:or was it really just the thought process was more healing for the person staying in the home? I think my, I think those, the original thought process is I want somebody to walk into the house and just, and home or just feel comfortable because just because they're struggling with drugs and alcohol, I don't think that they deserve to be in like a scroungy place. I think they deserve to just be in a nice place, just like everyone else. And what I found is that not one person has ever thrashed my house like they said because I feel like I take care of it they take pride in it and literally have taken care of my houses they've been the best tenants 11 years now so in the beginning I think it helped on both both um levels I think people walk in and they're like oh my gosh I've never felt like somebody cared of where I'm staying sorry I don't want get emotional um you've tried this is a very um much more emotional topic than a lot of you know just long-term leases like i'm sure you're very attached to the tenants and it's totally fine to get emotional i'd be surprised if you weren't in turn it helped me because my reputation just grew in our area and everyone was like you've got to get into this house it's amazing the owner takes care of things.

7:34Everything's clean. Your beds are comfortable. Where before it was like, the owners just weren't doing that. So it actually helped me where I had a wait list for 10 years. I had 20 people on a wait list every time. So as soon as somebody would move out, I would have somebody waiting to get it. I would turn people away left and right because they just didn't have enough beds. Where other people were struggling, maybe they filled their beds, but people weren't staying very long. They were just staying there until they could find something elsewhere with me, they would stay for years, like five, six, seven.

8:07I mean, the longest person I still have in my house today, I think he's going on nine years. Oh my God. They would just not want to leave. They would really kind of make that their home. And there's two ways to that too. Like not very many people can get help because somebody's staying in that bed two or three years, but also they had such a good foundation that by the time they were leaving my house, they were ready to go back to the world with a lot of like good solid foundation to do them now the industry's changed a little bit so i can explain how i do it a little different now but for the first nine years i was just strictly private pay so it would be uh people would come out of rehab and they would pay privately because regular insurance companies don't pay for sober living so it would be families paying for it maybe a family would say i'll give my son or my daughter two months and then they would get their own job.

9:00And so I always try to keep my prices really reasonable for what I offer because I wanted them to be able to do it on their own. They had to get like a minimum wage drop. I just feel like it takes the burden off the family and then they can repair their family life. It's supposed to mom and dad still be frustrated that they're paying for things and they're self-esteem too. I wanted them to feel like they were able to do it on their own. So I think over the years, I could have charged a way lot more than I was charging, but I wanted to keep it, um, comparable where I was still making money, but also being able to give that gift of self-esteem to somebody who could do it on their own.

9:39Now it's kind of changing in my area where there's a lot more county funded programs and, um, we'd still do private pay, but we also do, it's a mix of private pay and county funding. so uh the ones that are private pay had jobs and pay on their own um some families help but it looks at the times they're doing it on their own and then the ones that are county funded are in very specific programs that the county funds were through grants but it's a time limit so they don't just indefinitely get to stay there they have a time limit and then at the end of the time limit i can decide uh if i have beds or if somebody really is thriving in the house like can keep them on private pay or they can continue on the program to like the next step and maybe get their own case.

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10:56Natalie Palmer:So one question I have to ask is, I know you said you in 11 years have not had anyone trash your property. Thank God, knock on wood. But your mentor clearly had when he came to you with that advice. So my question is, have you ever had to evict anybody? Have you seen red flags with people? how do you know with co-living that everybody is going to get along well in the property um especially when they're sharing like a kitchen in common areas like just take us through that whole process of like fitting these tenants together making sure they're gonna work well together because you would absolutely think 24 guys in the house would be a nightmare it's not that great like to see the brotherhood or it's like i like i invite you to even come to one of our meetings one time he wouldn't just be like wow this is like this is really so uh systems and procedures right like i have really good systems and procedures i think uh the other big component is a good house manager so i have house managers that live in each house um and they've been with me a long time so they know our systems procedures they have really good boundaries they have uh strict rules but still very nurturing at the same time so everyone has expectations um every guy in the house or girl whichever house it is uh has a chore to do every so there's a.m.

12:19chores and p.m. chores so chores get done twice a day so that house is like ready for a mom roll-ups or anybody that has to walk through them i was in any great time my standard is very high so i'm like they can walk in this house and they wouldn't know 20 they didn't know five guys like it's spotless they have a.m. p.m. chores and p.m. chores so the house is very clean and um you know we just have our systems and our our consequences if you break the rules they get write-ups the different things that we do along the way to try to help guide them to get them back into following the rules and then eventually if they decide to not follow the rules i have to respect their decision to not want to get the house anymore but uh we don't really i've never had to evict anyone now if i have to ask somebody to leave uh you Usually they know beforehand, they know the rules.

13:14They know if they use shrubs and alcoholics and no tolerance policies. So I usually don't get any pushback on that. Very rarely do I have to ask somebody to leave because they're not following the rules because I can catch them in between. Like, say somebody doesn't follow the rules, you know, they might get a red X. Then go, okay, you got, you know, two or three red X's this week. What's going on? Kind of have a conversation. And a lot of times it's, if they're just going through something in life and they're stressed out or whatever, I know I've been slacking. Let me get back on it. If they continue, then they get a write-up.

13:45And if they continue past a write-up, then they get put on a contract for change. And usually by then, if they want to be there, they're like, you know what? I don't want to go to this stuff. And they correct their behavior. If they don't, then they don't want to be there anyway, right? They're just like not ready for that kind of structure or that accountability and they thought they were so they just move on um i think also if somebody comes home let's just give an example if somebody comes home using drugs or alcohol and maybe they don't want to leave they don't really want to be in a house with 20 guys who are cleanest it's not a cultural place for them to stay either right they're like they want to go do their thing so i try to give them resources there's so many resources in our area.

14:30So they can go to the Sobering Center. So they're not just out on the street that night if they leave our house. They can go into detox. There's all kinds of different emergency housing and different things that resources that we have that we could give them. So they're not just out on the street. If they want to get home, they can get home. They can go straight into a place that will help.

14:50Natalie Palmer:So you mentioned that you'll do like write-ups and stuff. Is this just your sort of internal system that you came up with with you and the house managers or is this like an accountability thing you're doing with the rehab center? Like, or once they're outpatient and discharged from the rehab, do they follow up? Like, what's that process like? Do you owe any accountability or reporting like that? Nope, not to, I don't owe anything to the rehabs that they come directly out of the rehabs. This is our step tree that we came up with. There's functions that have really, really strict rules. I mean, like you have to do 18 meetings a week or NA and you have to, you know, I mean, it's extremely wicked where maybe your phone gets taken away for two weeks and you only go out with a buddy.

15:32And then there's houses that probably have zero accountability. They just want to take your money and it's not a big deal to them if you're successful or not. They try to fall in the middle somewhere so that they don't feel like they're being micromanaged and like they're in jail. but also that they have good sure and accountability because that's why they're there in the first place um because i want them to feel like that's their home still but they're there for the accountability and structure so we try to and they're also adults and i i follow the the kind of the outlook like you're here because you want to be here like nobody in my house is forced to be they're choosing to be there they're choosing to go through a program so if you don't want to be here.

16:13You don't have to be here. I'm not going to keep your phone and keep you in the house for two weeks and do this whole thing. Because if you really don't want to be here, you're going to leave anyway, even if I try to do that. If you want to be here, you're going to be an adult and you're going to follow the rules and you're going to work your program and you're going to... I can't work harder for their Sprite and then they... So we give them the description, we give them the accountability. And if they choose to be there and follow that, great. If not, we totally respect that.

16:39Natalie Palmer:could you talk to me a bit about the house manager my question is if somebody listening to this is thinking this is really interesting i would love to open a sober home and start doing co-living is the house manager an essential role like would you say you have to have somebody that's living there on site and if yes how do you do that do they get free housing in exchange for that role or what's that structure like? Yeah. I think it's essential. I think that a house that's run really well is going to have a good manager. I think you could have the most beautiful house in Malibu and charge$10 ,000 a month, but if you don't have a good manager, that's not going to be a good house.

17:17So that to me is like one of the most important things. I will say this, the way it's been done for years is a lot of people give free rent for that i don't follow that because um i this is my advice to anybody who would like to start and follow your label labor laws because it is uh it is by law uh like a job so essentially so i follow labor laws i have employment. I do payroll. I do all of that. Even though there's structures in that to have some housing taken off of that, the ones that are doing just strictly housing, I would say make sure you contact your labor law attorney.

18:06Natalie Palmer:So that might not be legal to just exchange housing for that role. Yeah. Okay. Okay. So that's why I always tell people you should really contact a labor attorney and make sure you're doing it, following the law with all that. How do you ensure that that person, I mean, they obviously leave sometimes. I'm sure they probably have a full-time job. Is that person there 24-7 or like what's the structure with when they're on site and when they're checking in on everybody? Yeah, for us, they don't have to be there 24-7. They can have another job. They, I personally, a lot of people don't do this, but I personally love to have a manager, and assistant manager just to have extra.

18:49I mean, at some of my houses, I even have a third person that's just, you know, has a smaller role, but is also part of the team. So I like to have lots of oversight, I guess. It just makes me feel comfortable. So we, they don't want to be there 24 hours, but they do do random drug testing. We do have eyes on everybody every day. So, which means like my managers are looking at somebody, each person every day in the eyes at some point if it's in the morning before they go to work if it's coming home just to make sure because that's how we can notice if something's off or maybe somebody's used alcohol or drugs like hey this person isn't acting the same way they did yesterday so we just like to have a good eyes on that we do have a curfew person that makes sure everybody's in a curfew for the night so that gets checked off if they're working if they're on a pass We know where everybody is during the evening.

19:48And then just the communication and that camaraderie in the house. So the guys are cooking together, or some of them, they don't have to cook together. They buy their own food and supply their own food. But there's a lot of times a guy will say, hey, I have some eggs, and I have some tortillas, and this guy has this, and they kind of make a breakfast or lunch together. But the managers are there kind of in and out. So they're always interacting with the guys or the girls.

20:19Natalie Palmer:Okay. Okay. That's fair. And so then the payment that you would give them or the salary, I guess, you would factor in like whatever a normal wage is and then subtract maybe what would be the equivalent of that they're getting in housing and just figure it out that way? You can't deduct for full housing. Although you give housing out of the kindness of your heart, that's something you sacrifice. if you wanted to give a discount off our rent, that would be something super than the employment part. But there is, I know it gets kind of complicated. There is a small amount that you can take off of their, their wages for bed every week.

20:58But usually, yeah, you figure out what you want to pay them and then you decide what's employable. So not everything that they do is employable. Some of it is just them living there and being a mutually supported environment. So for instance, maybe the managers or different people had chores like filling supplies, doing house laundry, that kind of stuff. And then maybe the employable stuff is doing the intake and maybe doing the drug testing and things that I wouldn't allow anybody else to do would be an employable task. So then they keep their employable task hours and then we can't believe that.

21:34And if their bed rate that we're allowed to deduct can come off of that. And then their pay is on top of that.

21:43Natalie Palmer:Okay. Okay. That makes sense. So yeah, like a drug test has to be somebody who's been trained. You can have somebody that would like tamper with it, but the chores is like a collective thing done by everybody. That's just sort of part of what's expected for you living there. Okay. And I want to clarify again, this is specific to your state and your county that has these labor laws. You recommend everybody check with what you got going on locally okay i reckon everyone check your state name the clause are and file of it because there are things that are happening to some operators that are not following those okay could we talk about you to ever get stuck in that sure okay could we talk a bit about like the logistics of the house i just am so curious like 24 men sharing one kitchen.

22:32Natalie Palmer:My fridge is overflowing with a family of five. How do they do it? What modifications? Do you have extra fridges or what changes are you making to the kitchen? You did mention adding extra walls and bedrooms, but what are these upgrades you have to make to a house to make it a sober living home? I actually have not ever made any logistic changes to a kitchen. I might have upgraded it or made it newer, but there's still a stove and one refrigerator in there. And what we do, well, we do have extra refrigerators. So there's four people to every refrigerator. So if we have 24 guys and we have six refrigerators, so we use the room off of the kitchen, we're in the garage or something, we'll have extra.

23:18So everybody has their own refrigerator space and their own cabinet space for their dry foods. And then it sounds like craziness that everyone would be cooking, but everyone's on such different schedules. Some people are going to outpatients, some people are working, some people are, you know, and so there's never more than a couple guys in the kitchen cooking at a time. There's never an issue where somebody's like, oh, I have to wait because I can't get to the stove. It just, they kind of just work it out.

23:45Natalie Palmer:What about like dishwashers? Or is everyone like hand washing in their dishes, laundry, like do you put an extra, do they have to use a laundromat or do you do on-site laundry? I do on-site laundry. I think that is super difficult for people sometimes with no cars. It was a laundromat. A lot of people will do point operated laundry machines. I don't because I think that's just a pain in the butt to have to have$1.25 or whenever it is nowadays i don't even know to do a load of laundry so i do non-point operating yeah um in my bigger house we have two washers two dryers uh in my smaller house we have one washer one dryer and it works fine um in that they and they just we do have a board that somebody will write their name in case that somebody comes and goes oh you know calls stuff is in there right now wait till he's done and they just kind of have a system where they write who's in the washer and dryer at the time and then uh the next person keeps it and uh with there was another question you asked um dishwashing dishwashing in two of my houses they use the dishwasher in two of my and the other two they dump so the issue with the dishwasher and one day i would like to spend the money on getting one of those commercial you know where it's like 90 seconds and it just disinfects everything and like 90s down yeah we're good to go but i would do that now but you have to like uh or binger and you have to like retro it's like the whole thing with cabinets so when i redo the kitchen i'll i'll add those in but um problem is and how we work it now is you load the dishwasher the nighttime person turns it on it does the nighttime p.m.

25:26tour person turns it on and the a.m. person empties it but sometimes you'll get somebody in the building the night because we don't close our kitchen some some sober livings close at like nobody can go in at 10 o 'clock i just i would i think i'm good what's the purpose of that are you just have a new idea

25:43Natalie Palmer:so i don't close this yeah i'm a person if you tell me i can't go to the kitchen after 10 i'll be extra hungry like at 10 oh one like just don't deprive me of that that's how i feel so we don't close our kitchen on as long as they're quiet and respectful but then sometimes you have somebody who might eat something at 11 and then just stick the dish in there not knowing that it already got turned on and so oh sure and the next morning you're like do a DTS shop to redo it so it's the girls house they're really good about figuring that out they do it my small house is really good about it the other two bigger houses with men they just hand wash because the managers just find it easier to have everybody who's washed for dishes included a wage right way so there's no dishwasher that's overloaded or anything like that okay so now you i'm coming up with so many questions just as i talk to you so like ditches is that one that like each person like has their own claim to or like you standardize like you provide all the dishes and silverware like what what do people like own in the house is it just their food and their clothes and then everything else towels shampoo dishes like what's provided detergents i'm not sure for me i I provide everything.

26:57A lot of houses don't. I provide toilet paper. I provide all the seasonings for cooking, all the dishes, all of that stuff. Just like you would walk into a short-term rental, everything that you would need is there. Blenders, all the different appliances. instance um i they provide their own food and they provide their own personal toiletries if they're private pay if they're on county and they don't have anything coming in i provide like i'll give them a whole bag of whole toiletries if somebody comes into my house and doesn't have i just don't want anybody to to go with that so we do provide um toiletries and then if somebody comes in and they haven't been able to get their EBT, which is some food or something like that, I will provide them with food for the first few days until they can get on their feet and get some, go to the store or something like that.

27:52So we do that, but a lot of houses don't.

Read the full transcript

27:55Natalie Palmer:Mm-hmm. And then how you would check on like what they need, like, is that the house manager reporting to this person came with no toiletries, no food? Yeah. So during their intake process, the manager would check in with them, like, do you need anything? How are you going to food? Do you have people have money and some people don't? It just depends. So if they have money, they usually are like, no, I'm good. I could get my own groceries. And if they don't, we're like, okay, let's go. We have like a whole slot full of stuff. And then we give them enough food to get in for you until they can get it.

28:28Natalie Palmer:Okay. What about parking? Like, do all of them drive? do you have a lot of people with dois who can't like i'm very curious if you're fitting 24 parked cars in front of the house smart not everyone has a car so sometimes in ways like sometimes if the girls house i'm like geez you know we have 18 girls in a house so sometimes i'm like 12 of you guys have a car and then other times it's like four have a car and other times it just depends on the group that's there at the time we live in on a street that is street parking So we have plenty of parking in our two driveways around the street. Yeah, we have plenty of parking at all the houses just in the driveways and on the streets.

29:12In my newest house, it's an acre. And it just happens to be that both my house spans across two streets. So there's two streets that come into my house. So in the back lot, we actually built like this 5 ,000 square foot parking lot area. um but just so they didn't have to park on the street but really yeah that house because there's a lot of county funded people they don't typically come in with cars and so i don't have a car that anybody see there a lot of them are now getting these electric scooters and buying's cool yeah so much cheaper than car insurance and you know all the stuff that comes with the car so they get around on some of them have really nice electric bikes that can drive on the streets okay cool

30:03Natalie Palmer:okay my next question is kind of like what do you look for in a property you own for now um what for you like what criteria do you factor in like potential parking um like what to you would make a good home if you're considering purchasing another one like what would you i don't know you know what I'm asking like what's a good investment here just how that's the location is it close to public transportation is it close to shopping close to somewhere they could get jobs easily where they could take the bus or walk or take their scoops or something um then I start looking then I kind of go down from there and I start looking at the side of the house uh and I usually tend to to go for six or more bedrooms okay and then can I add another bedroom can I um like for instance in my second house the master bedroom and well let me back up for a second so i also do six people to a bathroom so and that's like the county code in most places so it's to a bathroom you said okay you can determine how many people can be in a house so for instance if it's four bedrooms and three bathrooms then i know that only 18 people max could be in that house no matter how many people you could fit in the rooms or how big the rooms are um that doesn't mean 80 people can fit in the house because they could be smaller rooms but that's the max you could get into okay so um then i kind of go backwards from there like for instance i also think in california we we tend to build where i live a master bedroom has a bathroom in it and then maybe there's another bathroom in the hallway or something like that so i have to think well that master bedroom, at least six people could use, I mean, more than six people could use a bathroom, but that's just the ratio, right?

31:52Right. I'd have to think, I don't let people walk through other people's bedrooms. Well, only the people in that master bedroom can use that bathroom. So there are other bathrooms in the house that would fit the other people. If not, then I think of creative ways. Like in my second house, there's the bedroom next to the bathroom and then the master bedroom, and I was able to pop a door in that second one. So the two bedrooms now can use that bathroom.

32:16Natalie Palmer:So we turn it into like a Jack and Jill essentially. Okay. So I was able to do that in that one. Other houses don't have it in the master bedroom. They just have it in like two hallways. So it worked out good. So I look at things like that. If there's only two bathrooms in a house and one's in the master bedroom, that is just going to be a nightmare for me. So I always try to find three bathrooms at least one bathroom. What about like square footage? Is that something that the county cares about? No more than one person per like 150 square feet or something? Any rules around that? Yeah. So the standard is 50 square feet per bed.

32:59That's per bed. So a bunk bed counts as a bed. This is in my area. Other areas might be different. I go by the national standard because I just have really high standards with Miss Sober Living. So if I go at least a minimum of 50 per person. Okay.

33:15Natalie Palmer:50 per person, not per bed. That's a higher standard than what you have to do. Okay. And that's, so sorry. So who sets the standards? You said that there was a national like standard for sober living homes? Yeah. So the national standard is from NAR, N-A-R-R. okay and uh they have a they have like a national standards list of what they their higher expectations of what usually kidneys will ask for it so i just like to go with that standard over the normal 50 square i mean per bed okay and i just i imagine correct me if i'm wrong but that 50 square feet per person this is like for the entire house right so like a common area would be factored in or do you have to like really measure out like 50 square feet around each bed no i do a per bedroom so if there's 200 square feet in a bedroom then in my head four people could live in there comfortably okay now that might be a bunk bed i don't do regular bunk beds um a lot of people do bunk beds to fit enough people in the house my bunk beds that i do do custom built into like the whole wall with like staircases and stuff like wow wow I don't just do like the little metal bunk beds.

34:35So they're either single beds or if I have a bunk bed, it's like a, it's like a loft almost like they have curtains. It's like a staircase. It's all this thing. I get them custom built.

34:45Natalie Palmer:So people share rooms here. It's not everyone gets their own room. Could, do you have options where like someone could pay more for their own room or is it just like, this is you pay per bed and that's it. Um, I don't want an option. Maybe some people do. Uh, I just do it per bed. And then there's multiple people in rooms. There's anywhere between, this is going to sound crazy, but just hear me out. There's anywhere between two people in a room. And then my biggest room is seven people. But it's a huge room. And if you saw the bunk beds or staircases, it's super cool. And you don't even feel like there's seven people.

35:22Oh, my gosh. I mean, the ceilings are like 10 or 12 feet tall or something. So they have like really big. It's really cool. So it's not like they're shoved into this little room.

35:34Natalie Palmer:Can I ask like, how much does this cost to put in a like custom bunk bed? This sounds so cool. It's very, it's very expensive. All said and done, I think my bunk beds probably cost$10 ,000. Per? Yeah. Oh my gosh. Okay. So when you're purchasing a property, so things that you may have to add to make it work for what you're doing would be like the Jack and Jill bathroom. So looking, is there potential to add another door? You're possibly adding more walls and more bedrooms just for more privacy. For that, I assume you would cut into like the living room. Like, do you really need common areas in your space?

36:20I do. I think they like to hang out and watch movies and stuff. Oh, yeah. Okay, great. I always like, let's see, in my big house, I have one living room, but I also turn the garage and do a whole like big TV sitting area, workout area. In my smaller house, I have two sitting areas or two like living areas. My girl's house has just one big one, but they have a salon room that they get ready in with makeup and stuff. So they're in there a lot. I make sure it's a lot of good common areas. That is just so cool.

36:57Natalie Palmer:Sorry to cut you off, but I really, my thought process would have been that a lot of people operating something like this would be almost like scared to let people get together like like i don't know i would think that there'd be fear around like oh the sense of community what are people going to talk about are they going to like encourage each other to go back to some bad behaviors but clearly you have not had anyone trash your places you've never had to evict anyone so what you're doing is working so do you see like that that having the common areas and preserving that is like part of the reason you have a high retention rate and people are staying for so long.

37:33Natalie Palmer:Yeah, I do. I think a lot of people think the problems that have addiction is sobriety, but it's actually connection. And so they survive with connection. A lot of people are like, how do you put it in their own room? That's actually detrimental because they isolate. And then that's when they get to use. It's also for safety. So if they have two people in a room, A roommate's going to pick up on something way faster than if somebody was in a room by themselves. And nobody knows that they're using drugs or drinking. A roommate could say, oh, hey, go check on him because he doesn't seem, you know, he seems like maybe something's going on.

38:07But they thrive with connection. That's the opposite of addiction. So, yeah, it's actually detrimental to just put them all in their own room when they're in a place like this where they're seeking that connection.

38:20Natalie Palmer:Sure, sure. I would think yeah it'd be so tempting to be like I can make two more bedrooms and put you know eight more beds in here and sell more spots but if that's undermining their whole success like yeah what are you even doing here yeah also the only way I take common spaces out is like like in my second house I had a dining room like which would happen like a full dining room kind of issue and then a full another dining room and so I was able to to take and put a wall up and make that normal dining room maroon without taking away a dining okay okay so if i'm an abstract kind of space where i'm like edit not really getting used two dining rooms right next to each other i can i'll do something like that but i won't take away like a full front round or something totally okay and i'll just cut you off yeah sorry you know, all my men's house have pools and stuff like that.

39:20So like, and I allow even the police to come over and they're all washed and everybody's yelled up. They can have swing parties with each other. They can have barbecues. We have barbecue. Like I want them to enjoy the right. I want them to know that there's so much more than when they were using and not feeling good, right that they actually can have fun and have a place that that they can just be together and

39:48Natalie Palmer:yeah hang out this is amazing um you mentioned that you have this wait list right now how do people how do you choose who's off the wait list is it just in order of when they came or do you take applications do you interview people and make sure they're going to fit with the group that's in there currently um so and right in this moment i'll have a waitress and it's with the county so the county kind of calls and says okay this person's coming out of rehab so they get first choice i i keep it controlled and do the the interview with them first to make sure that they are a good fit for our house but not just that they're a good fit for our house i want to make sure our house is a good fit for them because i want them to be successful and i don't want to just take whoever and then knowing maybe it's above our capability of handling or maybe their adders fever for it or else for certain mental health issues because I don't want to um I want them to be successful I don't want them to come in or set them up for failure so I always want to mention our house is also a good fit is that something that you I would imagine that that took time to figure out like day one, first time filling your very first property.

41:06Natalie Palmer:What was that like? And like, what have you learned today that is a good fit for you and vice versa? That first one, I remember very distinctly. It was so nerve wracking. I was trying to think of all the questions to ask, but I think it all comes down to like gut feeling, but also not just that feeling, but really now I have my questions down so good that I can tell if I need to refer them to a different place, like a higher level of care or something like that. That doesn't happen very often. Most people I'm like, yeah, sounds like this will be great. And the lots that aren't serious about the recovery will weed themselves out on their own.

41:46like they just so it kind of is a natural thing that we that we've established um yeah i've just been doing it so long i could get on the phone and i just have my you know my little format i go through and it's a pretty quick there's it's not like an hour interview or anything like that i'm just just trying to determine do they need to go somewhere else are they going to be okay to come

42:08Natalie Palmer:to our house i know a lot of times with like midterm rentals for example or even long-term rentals, you might know who's coming in like three months. Like a corporate stay, they'll say, I need accommodations three months from now, and you can book those in advance. How does this world work? I would think if somebody's getting ready to come out of rehab, it's a pretty quick turnover. What's the placement process like? How quickly do you need to get them in so that they stay on track? Yeah, it's not too crazy. So before when they were just prior to pay, they usually went to rehab for about a month.

42:48That's an average if they're doing private insurance to go to rehab. I would always tell the rehabs because I would know all the case managers and stuff and they would call me and say, I need to place this. So I would say, as soon as you get a person, call me by the way and I'll put them on my list. So you know about 30 days in advance. Yes. I know when they're coming out, if a bed opens, I could call you and say, okay, I've got a bed open for this person. Now with county contracts, it's probably, it could be anywhere from the same day, which doesn't happen very often, but it's not been the other day where a county worker's like, do you have a bed open today?

43:25I'm like, I do. Or no, somebody was leaving. I'm like, yes, I can, I can get them in somehow. We work today. I always try to accommodate, you know, if there's something that they need, but, uh, usually it's like, okay, they're coming out on on the 20th. Like I just got one today that will be out on the 20th, but I have somebody else leaving either on the 18th, 19th or 20th. So they'll go in that bed. My turno, like I don't have beds open for two weeks while I'm waiting for somebody. It'll be that somebody is coming as soon as that person.

43:55Natalie Palmer:Okay. And that's just like, because of your, how many connections you have and the wait list that you have, that's how it's working. Would you say other sober living homes may have longer gaps or is this like pretty common yeah I think um yeah it all depends on the house and how they're ran and their reputation and and all of that the referrals and stuff like that could be it could be where people have longer gaps so I don't want to I don't want everyone to be like oh my gosh I'll have no gap if I go out do that perfect it'll all fall into place yeah the next thing I do want to say that is always important for me to stay on these things is don't get shiny object syndrome and and hear this and go oh my gosh i could go do this i of course i i'm an advocate i sit on help pains and boards of the silver living network and our coalition and stuff but advocate for quality uses if you're going to get into this do it because you want to help and you want to pay money it's great to do both but have a balance of that don't get in it to it just for the money because it will show because you won't put your heart into it you won't put an amount of money back into the house to make it stay beautiful and like like for me if the dish towel looked grungy i get new dish towels or i replace the rugs a lot of owners might not put the money back into it and then that's when the house was kind of start looking like grungy if i don't for lack of a better word um if you're gonna get into this do it because you care about addiction and possibly having a business.

45:28Natalie Palmer:Yeah. Yeah. I love that answer. That brings up a question I wanted to ask you because everyone's always talking about passive, passive investing and passive income. I would love to know your like honest take on how passive or not something like this is. Like once the house is full and you've got your house manager, it sounds like you're still pretty involved. Like if you find out somebody needs food, you're picking up a bag of groceries to get them through the week, or is that now the house manager's job? And then also things like placing. You said literally today, county called you and you have to get the place ready.

46:04Natalie Palmer:So what does your schedule look like operating four of these? So I have a lot of help doing this 11 years. So like I said, I have really good systems and procedures. I have nine amazing managers because that's just what I choose to have. Other people might have one per house maybe somebody just has a house lead i don't know how however other people do it differently i also have a really amazing assistant that does so much for me she's on all of our channels when the guys at the house say give up give the list of supplies for the month that they need my manager orders it has it deliberate i don't have to run around and do all that anymore that being said i did it for a long time um because i just loved being fluid of it and I loved being over there all the time.

46:50So I chose to do it. I probably could have gotten an assistant a long time. It's kind of like to be involved. Now I just so busy, I can't be as involved as I was before on like everything. But I think I choose when I want to go over now. I will say in the beginning, if you're going to start one, the first year is not going to be passive out. Like it's going to be where you need to be on top of your manager. You have to remember your managers are in recovery as well. And so you have to make sure that everything's on the up and up and everything.

47:22Natalie Palmer:I did not realize that. So your managers are all people in recovery too. You're not hiring someone like for a job that's just getting the discounted housing. I hire people who are in recovery because they know, they know the manipulation, they know the signs, they know all of that. And you can't fool them. Sure. I mean, out of business school, lots of managerial position or something. Yeah. No. And I'm sure that your tenants or what do you call the people living there? Tenants? Do you have another word for it? House guests. Oh, house guests. Okay. Your house guests. For them, they probably appreciate somebody that's been down the same path and understands the world they're coming from.

48:08Natalie Palmer:So, okay. I did not realize that. I was wondering like, where is this a job description you're posting somewhere? um so most of your house managers then have they almost like graduated from being with you at this point they lived there they came in as a house guest and now they're a manager yes i i thought in the moment was in my house no once uh maybe a manager says okay i'm ready to move out and on my own then i look for the most responsible person in the house it kind of's your train and that higher but my managers have been with me for a long time my first house I think my manager's been six and nine years like those are my managers and then my girl's house is going on five years and then my uh fourth house they've been with me yeah for three four years at my other houses and I moved to this house and then my newest managers have been with me going on like a year so okay yeah They've all been with me.

49:07Nine years.

49:09Natalie Palmer:And I have to ask, and I hope this does not come off as like an insensitive question, but in nine years, do they feel like they want to go live on their own or like they want to get married or start their life or like they just like what they found and they know that that's what's keeping them grounded? So interesting story. When he was married and he was really bad at his addiction, she actually, he wanted to end his life. She found him in the garage. so this is the same wife like he's been married through his whole oh my god wow and then got him into rehab and um and then he's only gonna be for a month and so but then after being in my house for a month he's like i'm not ready to go back but and so they worked on their marriage through the first few years of him staying there and he would go home like on the weekends and come back and it's just a great spot.

50:00They're still worried. He goes out to every other weekend. He does this quite a bit more where he helps her with the bills, but he's got a job down here and this is like his 100 % safe place. He's like, I still, every year he's like, maybe I'll double next year. And so then every year he's like, hopefully one more year I'm going to stay here. It's almost like he just, he's got, he manages, he loves the house, he loves all the guys. He loves giving back to the guys, but he also has that. but I think it's just the way they worked it out where it's nice that she gets and maybe like during the week, every other week.

50:36And then they have a great time together when he goes up there. And, uh, I mean, every year I'm expecting him to live that home.

50:44Natalie Palmer:That's going to be such a big loss when he does. I am shocked right now. So he's fully married, owns his own house and just still found a way to keep making this all work. what i didn't make our same stuff he's been tired and he his family lives up uh in the next county and every weekend he goes up there and he stays there with his wife and and she helps other kids with their grandchildren but he he always tells me he does the same thing he gives me a year he's like okay one more year i'm gonna be here and um he just loves he's he loves having this like little thing that he manages guys and has new guys coming in and he takes new meetings and he he has this whole little thing and then he gets to go home twice does he have kids or these his like de facto children now he's adopted in the house all grown like yeah they're all grown um and then i have managers that never had kids um and then i have managers who have young kids like one of them's leaving this weekend to go three hours away to visit his kids for the weekend so and they're little.

51:54So they're all in different spaces of life.

51:59Natalie Palmer:Yeah. For you, I know you said a lot of them, maybe it's typical to have a shorter lease with something like this, but you have people staying two to three even longer years. What is your goal? Is it your hope to see them graduate and leave? Or are you just thinking, as long as they need me, I'll be there for them, whatever that timeline is? well for like i would say the first nine years that was my thought process like it's not my space to say when you need to leave or when you don't need this anymore um but the last couple years with things changing with the county and different contracts it was brought to my attention and i in so now i'm kind of like i struggle with this uh i'm like that i like i don't know if i want to get into where they have a time limit right like six months or something like that because it's really hard for me to start thriving in my house.

52:50I find that. But somebody said, yeah, but you get to help so many more people. And we have so many resources that you can help. You can help so many more people than if you had just 10 people in a house for five years, which makes sense to me, right? But it's really hard when they do have that time limit. I'm like, oh, I wish you could get such a great garden loss. You're thriving and now it's time to move on. So I have to look at it in both ways. some of them need that extra time um but then also what i noticed is when they are there for a year two years or three years they're working and just living there and and they could go it's just their comfort zone so i find it's like i'm not to make that decision this year to be like okay guys you guys are people you guys are ready to go and we're gonna bring in some new people that need it today.

53:41Natalie Palmer:It's got to be hard today. That's like a parent, right? I mean, my kids are young, but I'm like, oh, the day they leave is going to be heartbreaking. But that's how I'll know I've done my job. So I'm sure it feels similar. Devana, I absolutely love this episode. This is so different from, you know, usually what we talk about wallpaper and like crazy stuff with short term rentals. But I wanted to bring you on because I think what you're doing is still tying in hospitality and guest experience within this niche. I really want to link the resources that you mentioned. So NAR was one of them, N-A-R-R.

54:17Natalie Palmer:And then you also mentioned you're on the, did I catch that right? You're on the board of like a sober living. What is that? Like any resources for somebody who wants to get into this? I'd love to link all of that in the show notes. Yeah. The sober living, that's a national organization. I sit on the executive board of that and then uh um my website is uh the house of courage.com the house of courage house of courage.com that doesn't sound right i don't know that sounds very nice right um instagram is uh devonna invests it's devonna it's another of the most things about the houses there um but yeah it's an interesting thing it's not for everybody but if you have more helping people or having a business at the same time it's amazing this is fascinating and yeah I'm sure people have so many questions this is again such a new world from what we've talked about and we've barely scratched the surface so I encourage people to go follow Devon on Instagram and then I'll link all those other resources you mentioned but thank you so much for just being such an open book about all of this yeah I want to say this too just to tie the hospitality in to to uh when they come into my house i want them to feel like they're coming into like a hotel or like a airbnb or a short-term renting uh their bed's made they have some stuff waiting on their bed for them i want to say what because then everybody will go like john our bed it's like chancing them all the lenders will be like do they have i'm like yes when they come their bed has to be made they have to have their pocket down their bed and i want them to just go okay they still sleep and then i can be somewhere i don't have to worry the next however many months for years whatever so even even that is like just above and beyond like what you're investing in the bunks and like this custom experience you've figured out um i don't know every like every detail you put so much thought into i'm still amazed that you do one fridge per four people.

56:24Natalie Palmer:I lived in a sorority house and we had one fridge for like 16 of us. So God bless you just on that alone. Yeah. Thank you. Don't do some stuff like that. I just get like a bunk bed and put it in there. Mine and have like a whole contractor. It's a whole design we designed. It's like a, it's a big project, but for me, it's worth it because I like aesthetically, I just like to walk into my houses and, and I just love the aesthetic part of it as well. So yeah, it's way different than most of them. You clearly take so much pride in all of this. So yeah, everyone go follow her on Instagram, check out her website, and you'll be able to see kind of what you've done with all the properties too.

57:03Natalie Palmer:All right. Thank you again, Devana. We'll put all those links below. Okay. Thanks, Natalie. Bye. And with that, it is now checkout time. Thanks for listening and I'll see you back here next week. Lastly, as Airbnb hosts, we all can appreciate a good five-star review. So you already know a great review on this podcast would mean so much to me. Please subscribe, review, share, and connect with me in the show notes below. Bye.

57:47you

From the publisher

This week I'm excited to be talking with Devana Cavé from The House of Courage, a collection of sober living homes that Devana owns and operates. Forget everything you've ever known or pictured about a sober living home, because Devana does things completely different.

Yes, she's a real estate investor, but what sets her business apart is the care she takes with every single house guest. From the colorful designs and nice furniture she invests in, to custom built bunks that offer total privacy, to the care package that every new house guest receives on arrival, Devana has made sure that what she offers is so much more than "heads in beds".

If you've been interested in investing in co-living spaces, but aren't sure if sober living is the right avenue for you, this episode will encourage you in how fulfilling and rewarding this type of real estate can be. Devana wants to be very clear – this is NOT for everyone! But if you feel called to offer an experience like this, you'll get to hear first hand how thoughtfully you can approach this for the people who need it most.

Check out some of the resources Devana mentioned:

narronline.org

The Sober Living Network

Find Devana on instagram @devanainvests

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