Senior Living with No Entrance Fee
A senior living community with no entrance fee is a retirement community that does not charge an upfront fee. Unlike some CCRCs (Continuing Care Retirement Community), a senior living community that offers monthly rent or lease options don’t require big buy-in fees. This is something you’ll want to take into consideration when researching your senior living options.
That’s because an entrance fee can range anywhere from $40,000 to $2 million (AARP). In fact, according to Kiplinger, today the average entrance fee (initial payment) for some CCRCs is $414,722. Paying one would mean less money to do the things you want to do because it is an upfront payment. So, if you are just starting to research senior living communities and are not sure what an entrance fee is, we offer more insight here.
What is an Entrance Fee at a Retirement Community?
What is an entrance fee at a retirement community? An entrance fee, also called a buy-in at some communities, is an upfront fee required by most CCRCs. The money is used to prepay some of the fees that come with offering access to continuing care (assisted, memory, or skilled care).
Unlike some CCRCs that require an entrance fee (buy-in), a 55 plus senior living community typically charges one monthly fee. The monthly fee covers things like rent, utilities, as well as services and amenities you would not get in a typical apartment setting.
Rental or Lease vs Buy-In Senior Living Communities
A senior living community that offers monthly rent or leases is the least expensive path to downsizing. With no entrance fee or buy-in fee, you save on the initial investment. You’ll get a variety of services and amenities built into your monthly payment. These can include housekeeping, transportation, meals, maintenance, and events and activities.
CCRCs or Life Plan Communities are a long-term care option for older people who want to stay on the same campus throughout the aging process. For example, a resident can start out living independently in an apartment and later transition to a higher level of care in a different building when needed. But that comes at a cost.
Cost of Senior Living
The cost of senior living can vary greatly depending on the type of retirement community you are moving into. The cost at some CCRCs can run into six figures making it unaffordable to most people. For example, the average entrance fee for some Continuing Care Retirement Communities is about $414,722, (Kiplinger).
Although the entrance fee may secure lower rates for any care you may need, paying one might mean you’ll have less money to do the things you want while you are able to. In addition, you may remain healthy and need little or no care. Which is why this type of community is not for everyone.
A rental senior living community (or a community that offers monthly rent or leases) is the least expensive path to downsizing. After all, there’s no up-front cost to pay beyond the security deposit, and the monthly fee is straightforward. In addition, you may remain healthy and need little to no care.
Bottom-line: if you are comparing the cost of living in a rental retirement community vs a buy-in, make sure you know what is important to you. Prioritize your needs and wants when researching places and spend time in them. After all, until you’re there, it can be very difficult to know if the community is a good fit for you.
Independent Living Communities
While some independent living communities do not offer care, others support aging in place (like Chateau La Jolla). At Chateau La Jolla, care options are available to give you the flexibility and choices that you may need when you need it. You can receive home care, home health care, hospice, physician visits and other services in the comfort of your apartment.
For today’s independent seniors, looking for an exceptional living environment, we offer overnight and extended stays during which time you can better acquaint yourself with our community.
