Rental communities for seniors
You pay a month-to-month rent on your residence, which typically includes maintenance and basic utilities and a selection of amenities. This type of community works best if you are able to live on your own and don’t expect you’ll need care in the future or are willing to pay for it out of pocket.
- Lower initial investment – because there’s up-front entrance fee
- No long-term commitment – you can leave at any time.
- You pay only for the services you need or want
- Rental communities typically offer limited services, amenities and activities
- Certain services, like housekeeping, transportation and dining, may come at additional cost
- You’ll probably have to move out if your health needs change, or you can no longer pay rent.
- If a senior living rental community offers a higher level of care – not all do – such as assisted living, you’ll pay market rates.
- Rental fees are usually not tax deductible.
Life Plan Communities
A Life Plan Community like Smith Village works best if you’re looking for an all-inclusive lifestyle and want to plan ahead for your future healthcare. Life Plan Communities charge an upfront entrance fee that guarantees access to what is called a “full continuum of care,” There is also a monthly service fee based on the floor plan and number of occupants.
- Guaranteed access to a full continuum of care, including assisted living, memory care, skilled nursing care, and senior short-term rehabilitation.
- Discounts on senior healthcare services.
- The monthly fee is all-inclusive, including all utilities, maintenance, housekeeping, dining plan, activities, amenities and scheduled transportation.
- More social interaction and a full calendar of activities and wellness programming.
- Greater financial predictability – Since you know up front what your potential costs will be, you can better plan ahead.
- Part of your entrance fee and monthly fee may be tax deductible as prepaid health care.
- Many Life Plan Communities, like Smith Village, will continue providing housing and healthcare if your funds run low.
- The entrance fee is sizable. However, depending on the contract, it may be partially refundable (up to 80% at Smith Village), when you leave the community.
- You will need to demonstrate you have adequate financial resources.
For-profit vs. not-for-profit: It matters.
Be aware that some senior rental communities can be not-for-profit. And likewise, some Life Plan Communities operate as for-profit businesses. What’s are differences, and how can they affect you as a resident?
For-profit senior living communities have an obligation to their shareholders/investors to deliver a reasonable return on their investments. The emphasis on maximizing profits can affect staffing levels, quality of amenities and services, quality of life and the community culture. This is not to say that for-profit communities don’t reinvest into their communities. But it’s likely not at the level you’d find at a not-for-profit community.
Not-for-profit senior living communities are usually mission-driven and operated by a faith-based community or fraternal organization. While they do need to make money, as tax-deductible organizations their first duty is to serving their residents, and they reinvest significantly more revenue back into the community. They also answer to a board of trustees dedicated to upholding the values and mission of the organization.
Learn more about how Chicago’s leading Life Plan Community can benefit you. Fill out the request form below.