Moving to retirement housing used to mean paying out huge entrance fees or other upfront charges before you ever got to the basic housing costs. But today, senior citizens have an alternative that lets them keep their hard-earned savings: It’s called renting.
The rental alternative often offers the same services and amenities as other retirement housing, including food and social services, security, maintenance and long-term care options.
But with more and more senior rental buildings available, how do you decide if, not to mention when, renting in such a community is right for you?
“Start by asking yourself the following questions: What can I afford? What are my priorities in the areas of health care, social services, housekeeping and security?” advises Kathy Pistone Erickson, vice president of marketing for senior housing for The Prime Group, a Chicago-based real estate development company.
First, the only thing rental retirement communities have in common with rental apartment buildings is the rental concept-that is, leases are short-term. Because retirement rentals include an array of services and amenities in the price, they are inevitably more expensive than the standard apartment building.
For example, a standard studio apartment can range in cost from $400 to $700 a month with or without utilities; a studio in a retirement community starts at around $700, and includes a standard package of amenities and services.
“This usually includes daily or weekly housekeeping and linen service; two meals a day; transportation to shopping, recreation and downtown; participation in social and cultural programs; long-term health insurance; emergency response services; and access to facilities,” according to Mary Pat Kilbride, director of marketing at The Hallmark, an upscale rental retirement community in Lincoln Park.
Many programs, she says, are flexible, offering leasing options that exclude meals and/or insurance. Others allow a deduction in rent for time spent traveling.
Depending on the program, a senior resident choosing to exclude some or all meals from the rental package can save several hundred dollars a month. At the Oak Park Arms rental retirement community in Oak Park, for example, the cost, excluding meals, of a one-bedroom apartment is $1,080. With two meals a day, the monthly rent is $1,305.
“For many senior residents who are alone in the world or have just lost a spouse, the social agenda is of the utmost importance,” according to Kilbride.
“That is why the social aspect of my life here is so important to me. This is my home, where I have established lasting friendships,” says Maduros, who last year was elected a spokesman for the Oak Park Arms by his peers.
A typical day of social and cultural activities at the complex might include an arts and crafts or exercise class in the morning, followed by playing cards-bridge or poker-in the game room or library, a shopping excursion to a local grocery store or mall, religious services and a pizza party in the evening.
But retirement living is not all fun and games. Finding the right place for you involves a lot of research and know-how, according to Erickson.
Beyond leasing options, what does a prospective retiree look for when evaluating the overall quality of a retirement community?
Shopping checklist
To help seniors in this endeavor, the Illinois Retirement Housing Association (IRHA), whose members are retirement housing professionals concerned with standards of quality in the retirement housing industry, has established a list of indicators to take with you on your search:
– Residents. Do residents have the opportunity for social interaction; appear to be happy and active; display a sense of security?
– Physical plant. Is the facility clean, pleasant and soundly built? Does it provide security and safety measures?
– Services. What services are available? Is a quality food service program in place? Is the menu appealing? What regular activities are provided that interest you? Ask to see a social calendar. Are emergency health care and community services available? What housekeeping and maintenance services are offered?
– Management. Does the staff appear qualified and knowledgeable; to work as a team; dependable; and sensitive to residents’ needs? Obtain a list of resident references. Are staff members accessible and quick to respond to residents’ inquiries or complaints?
– Finance. Is the facility financially stable? Do fees reflect the services provided? Ask to see financial reports.
– Resident organization. Does the facility encourage resident participation; a forum by which residents can share issues of concern with management?
– Policies and procedures. Are policies and contracts presented in writing, clear and open to residents’ input?
Security concerns
According to the Hallmark’s Kilbride, security is a primary concern among seniors considering retirement housing.
“Seniors who make the move into a retirement community often are prompted to do so by an incident of poor health or a worsening illness that has scared them,” Kilbride says. “Around-the-clock monitoring and/or emergency response systems afford them a sense of security.”
For Angeline Joselinas, 79, the 24-hour emergency response system at the Devonshire, a rental retirement community in Lisle, was key in her decision to retire there.
“I have very bad arthritis and can’t get around well. One of my greatest fears was that something would happen to me and I wouldn’t be discovered. But that won’t happen here. This is nice,” she says, referring to the emergency pull cords in the bathrooms, bedrooms and living areas of each apartment.
“All I have to do is pull the cord, and the staff (who are trained in CPR) will respond immediately,” Joselinas says.
If quick, accessible medical care is important to you, be sure to check out a retirement community’s affiliations with hospitals.
In addition to offering on-site clinics staffed by qualified health-care personnel, such as a registered nurse, many retirement communities contract for services and beds with nearby hospitals, according to Jean Elliott, director of program development for IRHA.
When Pauline Fox, 78, first moved into the Hallmark about a year ago, she never gave a thought to how this intricate network of health-care services might work for her. Then she suddenly became ill.
“I spent 11 days in the hospital with dangerously low blood pressure. But everything went so smoothly. I never had to worry about bills or paperwork, just my health. Everything was taken care of for me.”
Health care
Fox “was taken care of” because included in her monthly rent of $1,600 is long-term health insurance coverage for any medical or personal care she might need, according to Erickson.
Where health-care insurance is optional, as it is at the Devonshire in Lisle, the cost for five years of coverage, for up to $100,000 of medical expense, is about $100 a month.
According to Teresa Myers, marketing director for the Oak Park Arms, adequate coverage, combined with comprehensive health-care services, keeps senior residents active, healthier and out of nursing homes longer.
“And if it comes to (entering a nursing home), at least the transition is smoother and not financially devastating,” she says, adding that most retirement communities have ties to skilled nursing facilities as well.
Myers says that personal care options, ranging from simple bathing services, to extra housekeeping and laundry help, to the services of a live-in companion, help seniors better cope within their own environments.
A final consideration when determining if the rental retirement option is right for you is safety, a factor, according to Erickson, that most influences management’s decision concerning eligibility to live there.
“Every senior tenant must be able to comprehend and implement housing safety and evacuation procedures and rules. That includes being able to evacuate the building in an emergency and knowing the procedures for calling for help,” she says.
And safety requirements extend well beyond the physical plant. Although medical and nursing care is available on-site and/or through hospital affiliations, tenants are expected to be able to get around on their own and function semi-independently.
