The cost of senior living in Brandon, MS, is one of the most important factors to consider when choosing where you want to live. You probably already know there are many retirement communities with unique amenities, services, and price tags. But did you know that some communities charge an entrance fee while others don’t?
In this article, we’ll discuss entrance fees, how they work, and why some senior communities choose this model over others.
What Is an Entrance Fee?
When you move into a senior living community, you must pay an entrance fee. The entrance fee is a one-time fee that covers the cost of your apartment, utilities, and other services.
Why Do Senior Living Communities Have Them?
The main reason communities have entrance fees is to cover the cost of building new facilities, renovating existing ones, and maintaining them. Entrance fees include operating expenses such as salaries and benefits, marketing campaigns, food service costs, and activities programming.
Is There a Lifetime Cap on the Entrance Fee Increase?
Yes. The entrance fee increase is capped at a percentage of the original entrance fee, but it depends on the community.
Some communities cap their increases to a certain percentage of the original entrance fee. In contrast, other communities may have an increase that caps at a percentage of inflation (consumer price index). Still, others may have an increase that caps at a percentage of average wages.
Can I Get My Entrance Fee Back if I Move Out of the Community?
The entrance fee is non-refundable and non-transferable. This means you can’t use it for any other purpose except to pay for your initial move into the community.
The entrance fee is also not tax deductible. Note that even if you move out of the community before your lease term ends, you still have a financial obligation to pay rent until the end of your lease term. Suppose a resident wants to terminate their lease early because they have decided to move back in with family or friends outside their new community (or any other reason). In that case, they may request an early termination of their lease agreement by submitting an Early Termination Request Form.
How Do I Pay for the Entrance Fee?
There are several ways to pay for your entrance fee. You can pay in full, in installments, or with a credit card. If you choose to pay by check, it must be made payable to the community and mailed with your application documents.
These communities also accept cash payments at the time of move-in. A wire transfer is another option for paying your entrance fees. However, this method may take longer to process than other options listed above because it requires additional paperwork and signatures from both parties involved (you and the community).
If I Cannot Afford to Pay the Entrance Fee, Are There Other Options to Consider?
If you’re unable to pay an entrance fee, there are some things that you can do to help make the process easier. First, find a community that offers different payment options. Consider finding one that offers a payment plan or no-interest option. This will make it easier financially and allow you more time before moving into your new community.
These fees are essential to cover costs. They also help the senior-friendly independent living community to keep up with their standards and maintain a quality service. From maintenance to amenities and utilities, there’s always something that needs funding for everything else to run smoothly. Remember that each resident pays these fees so all staff members can provide excellent care for you.