In recent years, a significant number of rental communities have entered the arena of Life Plan Communities. The Rental Agreement has an attraction to the prospect who may want to “try on” a community or even a specific geographical area. The industry has witnessed tremendous growth of the rental option and its appeal has grown in the last few years.
BRIEF OVERVIEW OF A RENTAL AGREEMENT
A Rental Agreement is self-descriptive in its name; it is a month-to-month rental.Most Rental Agreements do not involve an Entry Fee, although some communities require a minimal Community Fee. In order to provide the services, amenities, and levels of care without a significant investment at time of entry, the Monthly Fees for Rental Agreements tend to be higher.
ADVANTAGES OF A RENTAL AGREEMENT
Rental agreements are terrific for seniors who do not want to be tied to one community or one location. Prospects may want to experience the lifestyle of a Life Plan Community without the significant Entry Fee that tethers them to their community. These seniors may choose to move from one location to another in order to experience different geographic regions during their retirement years. Some even chase the sun as they move to more moderate climates as the seasons change; for example, Florida in the winter and Connecticut in the summer. The flexibility is attractive to many of today’s seniors. Affordability is certainly another attractive feature.With no requirement of an upfront fee, residents have access to more of their asset base which is not tied up in an Entry Fee.
SELLING AGAINST COMPETITIVE AGREEMENTS
Stressing the advantages mentioned above is the best way to promote a Rental Agreement as it is compared to other types of agreements.The affordability and flexibility are key attractors. Similar to a Fee-for-Service agreement, the resident of a rental community is not paying for something they do not need or desire. Also in contrast to Entry Fee Communities, a resident may leave a Rental Community easily with no strings attached.
A premier Rental Community offers all of the services and amenities of a Life Plan Community without the substantial Entry Fee.
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About the Author
Patty Scotten is a consultant with Retirement DYNAMICS® and serves as their marketing manager. Patty has over twenty five years’ experience in the senior living industry and has led several communities in preselling expansions or increasing occupancy levels. She graduated from Elon University and holds a Masters Degree from University of North Carolina at Chapel Hill. Patty is licensed as both an assisted living and nursing home administrator.