Does your lease meet CDPH (California Department of Public Health) requirements? Are you at risk of application delays because of missing details in your lease agreement?
Many home health and hospice agency owners sign leases without realizing that even a small mistake—like a missing business name detail—can lead to months of delays or outright denials.
At The Home Health Consultant, we’ve helped hundreds of agencies secure compliant leases (the first time) and avoid unnecessary application headaches.
In this guide, you’ll learn:
- The exact lease requirements CDPH expects
- Common mistakes that cause delays (and how to avoid them)
- How to secure an office lease that won’t hold up your licensing process
What Are the Office Space Requirements for California Home Health and Hospice Agencies?
Home health and hospice agencies are pretty unique when it comes to the physical space they work in. While hospitals or nursing homes host all patients and staff in one place, HHs & HSPs deliver care to patients’ homes. Despite this, there are still quite strict requirements for your physical office location.
Can My Home Health or Hospice Office Be In My Home?
While some states allow home health and hospice agencies to operate out of a private home, this is not allowed in California. All California home health and hospice agencies must be in commercial, not residential, zoned properties.
How Big Does Your Home Health or Hospice Office Have To Be?
California does not have a minimum square footage requirement for home health or hospice agencies. However, your office should be practical and private enough to protect patient and employee health records.
Choose an affordable space in your Geographical Service Area. The licensing process can take 2-3 years. You want to keep costs as low as possible during this time.
How Many Rooms Does My Home Health or Hospice Office Have to Have?
Just like square footage, there is no legal room minimum for a home health or hospice offices. Oftentimes, agency owners who are just starting on their enrollment journey choose small offices. These small offices typically have one or two rooms. This keeps costs low during a multi-year period where the agency can’t legally generate any income.
When deciding on how many rooms your agency will need, we recommend renting at least two rooms. This allows for privacy during sensitive patient health conversations and a place for a surveyor to sit away from operations.
What Are the CDPH Rules for Medical Record Storage in Home Health & Hospice Offices?
Your office must include double-locked storage for both patient records and employee health records. This means:
- Either a lockable filing cabinet inside a locked office OR
- A separate locked room within your office for secure storage
We personally recommend having both of these at your office if possible. It never hurts to add an extra layer of protection to your patients’ information. Patient and employee health records must be kept separately, with different levels of access. Both must be behind a double lock and only accessible to people who need to work on those files.
Is There a Conference Room Requirement for HHA & HSP Offices?
While not explicitly required, we at The Home Health Consultant recommend having a conference room if your office is only one room. With a conference room, you have a designated space to conduct private conversations about patients. You also have a space to host your surveyor, potential clients, and other guests who may need to visit your office.
Your conference room does not have to be only yours. It can be a shared space in an office building to help keep costs low.
What Renters Must Include in a Home Health & Hospice Lease
When signing your lease, make sure every detail aligns perfectly with your business registration and application. Here’s what to look out for:
Legal Name Matching
- The business name on your lease must match exactly with your business registration. For example, if your agency is a corporation, the name on the lease must match your Statement of Information.
- Example: If your agency is registered as “Tender Touch HH, Inc.”, the lessee must be exactly that on the lease. “Tender Touch Home Health” or “Tender Touch Inc.” would result in CDPH asking for a lease correction.
Lease Term
- Your lease cannot be month-to-month.
- CDPH typically likes to see a minimum 1-year lease term.
- CDPH also tends to respond more positively if, at the time of application approval, there are at least 6 months remaining on the lease term.
Proper Use of Office
- The lease must specify that the office use is for a home health (HH) or hospice (HSP) agency.
- Simply listing “office space” is not enough—make sure the exact business purpose is written in.
- This section proves to CDPH that the office space is used only for the agency, and that no other business is being run out of that office. This prevents HIPAA violations.
Guarantor Requirement
- If you’re a new agency, your landlord may require a guarantor to sign the lease.
- This person is usually the CEO or a shareholder of the agency.
- If your business fails to pay rent, the landlord will hold the guarantor responsible.
What are the Floor Plan Requirements for Home Health & Hospices Leases?
CDPH requires a “professionally drawn floor plan” with your application. This means no hand-drawn sketches.
Your floor plan must include:
- Exits
- Entrance
- Lobby area
- Signage location
- Medical record storage area
Again, you do not need to include square footage on your office plan. Below you will find an example of an agency floor plan that was approved.
What Landlords Must Include in a Home Health & Hospice Lease
Ensuring your landlord’s information is properly documented is just as important as getting your own details right.
Landlord’s Details
Your lease should ideally list:
- Landlord’s name or, if applicable, landlord’s business name. (Many office buildings are owned by a company)
- Landlord’s address
- Landlord’s contact information (an email address will suffice)
If the Landlord is an Individual
If your landlord is an individual rather than a company, you must also provide a grant deed that proves ownership of the property.
A grant deed is a legal document used to transfer property from one person to another. It assures the new owner that the seller truly owns the property and hasn’t sold it to someone else.
Most Common Lease Mistakes That Delay Your Home Health or Hospice Licensure
After processing hundreds of lease applications, we’ve compiled a few common reasons applications get flagged.
1. Ensure Your Address Matches Everywhere
Your lease, CDPH application, and USPS address listing must match exactly.
For example, if USPS lists your office as:
✅ 123 West Avenue, Suite 5
Your lease must not say:
❌ 123 West Avenue, No. 5
2. Your Office Location Matters
CDPH may ask exactly where your office is located within a building. If you’re leasing space in a large office building, be ready to request a building-wide floor plan from your landlord.
3. Trust Owned-Property
If your office property is owned by a trust, you must:
a. Provide the grant deed
b. List the trust's full legal name as the owner on the lease.
How to Avoid Costly Lease Mistakes for Your Home Health or Hospice Agency
Getting your home health or hospice license is already a long process. Don’t let an incorrect lease add months of delays. Often, CDPH provides as little as 15 days to submit requested changes. Agencies can lose thousands of dollars in wasted rent because they didn’t meet CDPH’s lease expectations. But these mistakes are avoidable.
Review your lease carefully before signing. If you’re unsure, consulting with a licensing expert can save you months of frustration and thousands in lost rent. Even small mistakes, like an incorrect business name or improper lease term, can result in rejection.
Licensing consultants handle hundreds of applications and stay updated on changing regulations. They can ensure your lease is compliant the first time.
If you’re looking for a helping hand with your applications, check out our sister company, Smart Business Solutions.
If you’re not ready to work with a consultant yet, click below to read more about your office location and how it can affect compliance with state and federal regulations.
*This article was written in consultation with Mariam Treystman & Kelly McCarthy.
*Disclaimer: The content provided in this article is not intended to be, nor should it be construed as, legal, financial, or professional advice. No consultant-client relationship is established by engaging with this content. You should seek the advice of a qualified attorney, financial advisor, or other professional regarding any legal or business matters. The consultant assumes no liability for any actions taken based on the information provided.
