Under a rental agreement the resident typically pays a modest one time Admission or Community Fee. They execute a rental agreement that may be month-to-month or for a specified term. Rent is paid monthly and should the resident desire to leave for any reason, they provide 30 days notice and they are free to move and relieved of any and all financial commitments. Spectrum Retirement Communities offers a Month-to-Month Rental arrangement for their Residents.
Under the Buy-In (Entrance Fee) arrangement the resident pays a significant deposit for the right to live in the Community. It is not uncommon for the deposit to be several hundred thousand dollars. The amount also varies depending upon the apartment size selected. The Buy-In affords the senior the right to live within the Community during their lifetime and it may afford them priority access to higher levels of care within the Community, should such services exist. In addition to the Entry Fee Deposit, the resident will be charged monthly fees that, in most cases, are similar in amount to those charged in Monthly Rental Communities.
Typically the deposit (Entry Fee) is paid to the Owner of the Community and is refundable to the resident, only at such time as the owner vacates the unit, the community owner resells the unit and it is occupied by a new resident. The Community Owner handles this process and the senior resident currently occupying the apartment has no control of this process as they have no ownership rights. The senior occupying the unit has a lifetime right to occupy the apartment but has no ownership rights.