How much will daily living in a retirement village cost?
Most retirement villages are resident funded villages. This means that residents contribute to the costs associated with the day-to-day and ongoing management and maintenance of the village. This is an effective way of ensuring that facilities and services, that would normally be out of reach of most people, are available.
The general services charge is a fee that covers the running costs of the village e.g. day-to-day village management and administration, general village maintenance, insurance, security costs and gardening. The general services charge also includes a contribution to a mandatory fund called the Maintenance Reserve Fund, which is a fund that is used for major maintenance and repair of the retirement village’s capital items – e.g. repairs to the village lawn mower. Residents are solely responsible for payments into this fund and the amount required to be paid by residents is determined by an independent quantity surveyor.
Personal services charges are optional services supplied or made available to residents and, usually, are those services, such as laundry, meals and cleaning, which are provided to residents residing in a serviced apartment. Most villages will also provide these services to residents residing in an independent living unit, on a user pays basis.
The cost of services is reviewed with the introduction of each financial year. Residents must be allowed to consult with the operator of the village with respect to the introduction of fees.
Once you leave the retirement village, you will be required to continue to pay the general services charges for a period of ninety (90) days after you leave. After this period, you and the operator share in the costs of these fees in the same manner that you share the costs of sale. If you receive personal services as part of your contract, you will be required to continue to pay these charges for twenty-eight (28) days after you vacate your accommodation unit.
The general services charge is a fee that covers the running costs of the village e.g. day-to-day village management and administration, general village maintenance, insurance, security costs and gardening. The general services charge also includes a contribution to a mandatory fund called the Maintenance Reserve Fund, which is a fund that is used for major maintenance and repair of the retirement village’s capital items – e.g. repairs to the village lawn mower. Residents are solely responsible for payments into this fund and the amount required to be paid by residents is determined by an independent quantity surveyor.
Personal services charges are optional services supplied or made available to residents and, usually, are those services, such as laundry, meals and cleaning, which are provided to residents residing in a serviced apartment. Most villages will also provide these services to residents residing in an independent living unit, on a user pays basis.
The cost of services is reviewed with the introduction of each financial year. Residents must be allowed to consult with the operator of the village with respect to the introduction of fees.
Once you leave the retirement village, you will be required to continue to pay the general services charges for a period of ninety (90) days after you leave. After this period, you and the operator share in the costs of these fees in the same manner that you share the costs of sale. If you receive personal services as part of your contract, you will be required to continue to pay these charges for twenty-eight (28) days after you vacate your accommodation unit.