What You Should Know

by Janelle Meyers, CSA®, LALD

You have found your perfect senior living apartment.  Your belongings are packed. You hired a mover.  Before you receive the keys to your new home, you will need to sign a contract or residency agreement.  This contract will have the requirements of you and the facility.  It will have multiple pages and a lot of legal language.  It can be confusing, and many people don’t take the time to read through the entire document.  There are some important things you should know.

The Basics

When you move into an apartment the agreement has some basic items.  These include:

• Name of apartment occupants
• Managing agent and/or building owner
• Effective date
• Unit to be occupied
• Amount of rent due
• Items included in the cost of rent

In most cases, the information above is included in the first page of the contract.  In assisted living it is often referred to as the signature page. It is important to note the date the contract begins.  This is the day you will be responsible to start paying rent.  And make sure you understand what it costs.  Rent in assisted living or senior living is usually the same each month unless you receive notice of an increase. Most communities charge a second person fee when more than one person will occupy the apartment.

Agreement Terms and Conditions

Senior housing is different from multi-family housing.  In assisted living, most contract terms are month-to month.  At the beginning of the month it automatically renews unless notice is given to vacate.  When I worked in senior housing as an executive director in Minnetonka, we required a 30 day or full-calendar month notice to vacate the unit.  This was true when a person chose to vacate the unit or if they died.  Sometimes if the facility can rent your unit prior to your notice period they will pro-rate the rent for you and shorten the notice period.

Some independent senior living facilities that do not offer assisted living have terms of a full year.  They typically require a longer notice period and may require a medical reason to break the contract.

The terms and conditions portion of the agreement is generally the largest section. Sub-sections include, but are not limited to:

• Residency requirements
• Payment due dates
• Changes in rental amount
• Late fee charges
• Termination of the agreement
• Responsibilities of the facility and the resident/tenant
• Availability of public funds
• Assumption of risks

Utilities

In assisted living, many of the utilities are included in the cost of rent.  This is one of the reasons rent is higher. In the Minneapolis and Saint Paul area it is common for independent senior living apartments to individually charge electricity to the renter.  The agreement will disclose what is included and what you pay for individually.

Community Ownership

Did you know that many senior housing communities are managed and owned separately?  The contract will state who owns and manages the community.  They also must disclose the type of license they hold with the department of health when assisted living services are offered.

Other Important Items

Some assisted living communities participate in public funded programs and others do not.  If finances are a concern, you want to know if the facility participates in elderly waivers or housing assistance.

Another important point to note is that the building is insured, but your belongings are not.  You may want to purchase renters’ insurance to cover your belongings and reduce your personal liability.

Attachments

Each senior living community will include attachments to the residency agreement.  The attachments will cover additional services, rates for additional services, assisted living care package costs and much more.

UDALSA

The Uniform Disclosure of Assisted Living Services and Amenities (UDALSA) is a document provided to people moving into assisted living. The UDALSA discloses the types of care services offered, staffing ratios, licenses held and types of payment they accept.  Each assisted living facility is required to have this available to people prior to moving in.  It will be unique and tailored to a specific location.  Request a copy prior to moving into assisted living.  It is the best way to know what the community offers.

Before Signing

Prior to signing your agreement spend some time reading through it a few times.  You may also want to have your attorney or another trusted professional assist you in understanding the fine print. It is a legal contract you are entering.  Ask questions prior to the date of signing to be certain you understand what you agree to.  Every community is unique in what they offer, how they charge and how they manage the building.    The advisors at Choice Connections can assist you in knowing the best options for senior housing and care.  Have questions?  Visit us at www.choiceconnectionsmn.com