If you are thinking about moving into a senior living apartment or community, it is important to make sure that you understand all of the different financial aspects involved.
Leases are Month to Month
In most senior living apartments, the leases are month to month. These lease terms mean that if the senior living community is not working for you, you just need to give them a 30-day notice to move out. You will not be locked into long loan terms. If your physical needs change, you can easily move out of your senior living apartment into another arrangement that works better for your current needs.
No Real Estate Taxes
With a senior living community, you no longer have to pay real estate taxes. You do not own your apartment, you are leasing it, so you no longer have to worry about saving up and paying expensive real estate taxes every month. Instead, you can save and invest that money back into your life right now.
Renter's Insurance, not Homeowner's Insurance
You no longer need to carry an expensive homeowner's policy, because you are renting and no longer owning your home. Instead, you can get a renter's insurance policy, which costs a lot less per month and can really help trim back your budget, while still giving you the insurance protection you need.
Next, you need to make sure that you understand what your monthly fee or rent covers. The monthly fee will cover your space that you are renting, but it will also cover different services and amenities as well. Depending on the senior living community that you choose, your monthly fee may cover amenities such as cable television, internet, housekeeping, community activities, maintenance, transportation, and emergency assistance. There may be additional fees that cover more or there may be one-time fees that you have to pay for certain services. In some senior living communities, your monthly fee will include the cost of breakfast, lunch, and dinner as well.
Before you move into a senior living community, you need to understand what your monthly fee will cover and what expenses you are still going to have to cover and pay yourself. You also need to make sure you understand the different things you will no longer need to pay, such as property taxes and homeowner's insurance. Moving into a senior living community is not just about moving into a new home; it is a life-changing step that you need to make sure you fully understand.