Senior Living Showdown: Rental Life or Life Plan?
With retirement just around the corner, Bob and Betty find themselves at a crossroads. After three decades in their sprawling four-bedroom suburban home, where they raised their children and created countless memories, the couple is ready to put their house on the market. But they’re torn about their next move. Should they embrace the spontaneity of rental life or choose an entrance-fee arrangement at a Life Plan Community?
A rental senior living community sounds tempting because there’s month-to-month flexibility, no hefty entrance fee and the ability to pack up and leave whenever they feel like it. On the flip side, life plan communities offer an active retirement lifestyle and they wouldn’t need to scramble for a new place to live if one of them needs more care.
This blog will help active older adults like Bob and Betty explore their options and weigh the decision between rental and life plan living. We’ll decode common senior living terms and questions, from “What is a Life Plan Community?” and “What does CCRC stand for?” to “What are retirement home rentals?” and “What does ‘life rental’ mean?”
CCRC Senior Living and Rental Living Lingo
Before weighing rental retirement communities’ and Life Plan Communities’ pros and cons, let’s address two questions: What is a Life Plan Community, and What is a CCRC?
A Life Plan Community is also called a CCRC (Continuing Care Retirement Community). This senior residence option offers a full range of care on-site, including independent living, assisted living, skilled nursing, rehabilitation and memory care. Life Plan Communities make it easy to transition between different levels of care as your needs change over time, allowing you to stay on the same campus. Depending on your Life Care contract, you may either have guaranteed access to on-site health care at a predictable rate for life or pay only for the health care services you use.
A rental senior living community or retirement home rental charges a monthly fee for independent living or assisted living accommodations. Rental communities provide a comfortable living environment, often with amenities like dining, housekeeping and social activities; however, they usually don’t offer a full continuum of care and can’t guarantee the future costs of that care.
Key Differences: Rental Retirement Communities vs. Life Plan Communities
When considering rental options versus a Life Plan Community, consider your long-term needs and what will provide the most peace of mind. With a rental senior living community, there’s no significant upfront fee, making it easier for some seniors to move without a significant financial commitment. Renting can offer more flexibility and freedom if you’re unsure where you want to live long-term or are not ready to commit to a single community. Retirement home rentals are great for those looking for short-term living arrangements.
Most rental senior living communities don’t offer all the available types of care, such as skilled nursing, rehabilitative care, assisted living and memory care. If your health needs change, you may have to move, which can be stressful and disruptive. In rental communities, care services aren’t typically included in your monthly rent so your living costs can increase significantly if you need additional support or medical care. In addition, most rental communities are for-profit, whereas most Life Plan Communities are not-for-profit with lower monthly fee increases and benevolence funds available.
Opting for the flexibility of a rental community might feel like you’re gaining more “freedom,” but it doesn’t offer freedom from future what-ifs. Without a guaranteed place in higher levels of care, you could face uncertainty and financial strain if your health needs change.
While retirement rental communities might seem more affordable initially, they can’t match the long-term security and continuity of care offered in a Life Plan Community. Under a Life Care contract, a one-time, mostly refundable entrance fee and a monthly service fee lock in your rate for life, giving you priority access to a full range of health care services, all at a cost significantly lower than the local market.
The entrance fee isn’t just an expense; it’s your ticket to a stable, vibrant future without the uncertainties of rental life. It’s an investment that adapts to your needs and ensures you won’t face unexpected costs if your needs change. With access to on-site, high-quality care from trusted staff, you can stay in control of your lifestyle and age in place comfortably.
Longhorn Village: Your Life, Plus
Retirement should be a time to relax and enjoy life, not worry about skyrocketing health care costs or whether declining health will force you to move again. And in a senior living showdown between rental life and a plan for life, Longhorn Village will always come out on top.
Choosing Longhorn Village isn’t just a decision for today. It’s for all the tomorrows you’re looking forward to, such as first-class services and amenities, maintenance-free living, chef-prepared meals, fitness, learning and creative outlets, a vibrant social atmosphere, and endless opportunities for an active and fulfilling lifestyle.
Our community is designed with older adults like Bob and Betty — and you — in mind. It’s a place to support you through all stages of aging. Here, there’s always something fun to do, you’ll always be in a familiar place with people you know, and you’ll have access to the care you need in a community you love.
Ready to find out more about what a Life Plan Community like Longhorn Village has to offer? Give us a call at 512.503.8288.
Featured Image: Longhorn Village, 2014