Hammered by Recession: Senior Living Facilities Hit Hard

MOORPARK, Calif., Aug. 10 /PRNewswire/ -- The older generation of Americans who strategized to sell their homes in order to fund their eventual moves to assisted living and retirement communities, have seen their plans devastated by the housing market crisis, not to mention the free-fall decline of their investment portfolios. People who are in need of care but have no long-term care insurance (which is the majority) have been especially hit hard financially.

On average, the cost of a room at a nursing facility can be about $76,000 a year for each person. In comparison, the cost per year for a one bedroom unit in an assisted living facility averages about $35,000. However, in light of the recent economic downturn, many independent and assisted living facilities, some reeling from expansion plans that are now in danger, have offered potential residents special deals in order to boost sagging occupancy rates.

"These days, many facilities are deferring rent until their target residents can sell their homes, or at the very least are offering lower move-in rates," says Mary Jo Leste, chief executive officer of Senior Smart, Inc., a marketing company specializing in assisted living and home hospice referrals (see http://www.800seniors.com). "I've seen communities permit couples to move in after collecting the entry fee initially, but allowing a postponement on the due remainder for a period of six months after they move in." In some cases, many facilities will waive what's known as the "community fee" to those who ask. This is a deposit that is usually about the same amount as one month's rent. Smaller residential homes are the ones cutting the best deals amidst the crisis, as they are the ones who need to fill vacancies more quickly and have the most freedom to implement such deals.

Assisted living facilities all across the country are feeling the effects of the slowing housing market. Some of the larger, publicly traded companies operating in the assisted living industry include: Brookdale Senior Living, Sunrise Senior Living, Assisted Living Concepts, Five Star Senior Living, Emeritus Senior Living and Capital Senior Living.

Mrs. Leste suggests inquiring about "non-premium rooms" that aren't generally advertised but can be real money-savers along with "companion rates" that are also available. Although having a roommate might not be what everyone likes, those who are willing to share can lower their rent by at least $1,000 a month. Also, widening your options when it comes to geography can reveal a wider array of budget-friendly options. An "intra-family loan" can be another option as well. These loans are available to the children of seniors, which allow them the resources to loan money to their financially struggling parents as they try to sell their homes. While it's true that less desirable views and locations can account for these cheaper rates, those who are willing to make these simple sacrifices might want to jump at the opportunity.

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SOURCE Senior Smart, Inc.