BLOG ARTICLE

MAIN BLOG > POST: Comparing Buy-In vs. Rental Senior Living Communities

Comparing Buy-In vs. Rental Senior Living Communities

Is a buy-in or rental senior living community right for you? Check out the pros and cons of each to help you decide.

In this article:
    Add a header to begin generating the table of contents

    Buy-In or Rental Senior Living: Which One is Best for You?

    As if making the decision to move to senior living isn’t difficult enough emotionally, navigating all the details and the lingo can be downright overwhelming. We get it and are here to help. There’s often a lot of confusion around the types of payment models senior living communities offer: buy-in or rental. Let’s explain and help you determine which could be best for your needs.

    Payment Models Defined

    Quite simply, this is the way in which you will pay for your senior living community’s services. Many communities offer either rental or buy-in. But some communities give you both options so it’s important to understand how they differ.

    Rental

    You pay a monthly fee based on the level of care you receive (independent living, assisted living, skilled nursing, etc.) with the cost increasing as your needs increase. Your typical monthly fee often includes the following:

    • Meals
    • Home maintenance
    • Housekeeping
    • Social activities
    • Some utilities
    • Emergency call monitoring
    • Security

    Buy-In

    A buy-in or entry fee community is typically a continuing care retirement community (CCRC). A CCRC offers at least three levels of care on one campus. Although there are rental CCRCs as well, in a buy-in situation you would move into independent living and pay an upfront fee in addition to your monthly fee. You could consider this fee as a down payment for your future care should you need to move to assisted living or skilled nursing for example down the road.

    The Pros

    By and large the main pro of the rental model is the flexibility. You’re not locked into a long-term contract. In addition, you can get many of the same perks of the buy-in option and retain complete control of your assets.

    With the buy-in payment model, you’re really giving yourself peace of mind for the long term. Should you need to move to assisted living or skilled nursing, your buy-in may ensure you have priority access. In addition, this money can help to offset those more expensive care costs and is considered a prepaid medical expense by the IRS, so tax deductions may be available. Lastly, you may also have the option for up to 90 percent of your buy-in fee to be returned to your estate or designated beneficiary.

    The Cons

    In a rental model you don’t have the predictability of knowing now what you’ll pay for future care and having that money set aside. The fear of not being able to pay future health expenses is a top concern for seniors.

    The upfront fee for the buy-in model can run into the hundreds of thousands of dollars. Although many fund this through the sale of their house, realistically not everyone can afford it.

    What’s Best for Your Needs?

    Both rental and buy-in payment models are great options for senior living in the right circumstance. And that’s really what will drive which you choose – your wants and needs for the future as well as your budget.

    For more information on moving to a senior living community, check out our Guide to Funding Senior Care & Housing today →

     

    download our senior funding guide

    RELATED ARTICLES:

    How to Research Your Senior Living Options

    CATEGORIES: , , ,

    When considering joining a senior living community, there’s a lot to learn before making a decision. Even with friends already living in a senior community, it’s important to recognize that everyone’s needs are different, and understanding those needs and the suitable options available, will help steer the decision-making process to the right choice. To begin researching, take a look at the basic senior living options available:

    READ MORE

    Home vs. Senior Living: How to Choose

    CATEGORIES: , ,

    When choosing between home and a senior living community, a thorough assessment of the current situation can help ease the way. An honest look at needs, help required and finances can go a long way toward making the best decision.

    READ MORE
    touring senior living communities

    10 Questions to Ask When Touring Senior Living Communities

    CATEGORIES: , , , ,

    Would you like to tour senior living communities but aren’t sure what you need to know? 12 Oaks Senior Living tells you 10 of the most important questions to ask.

    READ MORE

    5 Things to Consider When Choosing a Senior Living Community

    CATEGORIES: ,

    When deciding between senior living communities, the more you know the better. Find out the five things to do to make the right decision.

    READ MORE

    Family Conversations: How to Talk to Your Parents about Senior Living Care

    CATEGORIES:

    When caring for a parent becomes too much, maybe it’s time to consider a senior living community. If you’re dreading “the talk” with a parent, take heart and check out our blog.

    READ MORE

    Senior Living Now and Then: Not Your Grandma’s Rest Home

    CATEGORIES: ,

    Today’s senior living options have almost nothing in common with “homes” of the past. Find out why there’s never been a better time to join a senior living community.

    READ MORE

    How to Make Senior Living More Affordable

    CATEGORIES:

    Don’t let the rising cost of care and resort-like feel of today’s communities fool you. Senior living can be affordable. Check out how you can make it work for your budget.

    READ MORE

    Comparing the Costs of Aging at Home versus Senior Living

    CATEGORIES:

    Think your heart and head will always choose aging at home versus senior living? Put them to the test. Let’s compare the costs and value here.

    READ MORE

    How to Pay for Senior Living

    CATEGORIES:

    How do you pay for senior living? Learn about costs, the value and the variety of ways you can stretch your budget as well as your options.

    READ MORE

    COVID-19 Myth Busters from the World Health Organization

    CATEGORIES: ,

    As the pandemic intensifies, so too do the rumors and myths circulating online. Find out what’s true and what’s not from the WHO.

    READ MORE

    SUBSCRIBE TO OUR BLOG

    SCHEDULE A PERSONAL TOUR

    If you're interested in learning more about 12 Oaks Senior Living, please call 214-871-2155 or click here to schedule a personalized tour.

    214-871-2155