Money is tight for many seniors. More than 15 million Americans older than 65 live at or below 200% of the federal poverty level. Even seniors who aren’t “poor” but rely on Social Security struggle to meet their monthly expenses. Already facing rising healthcare costs, many also fear they might have to deal with higher senior housing rents.
“I’m looking at affordable senior housing 55 and above,” a senior reader named Kathy told us, “Yes, I can probably afford the rent now, but if increases are imposed, it would not be long before it would not be affordable for me.”
While an annual increase in living expenses is expected, is the same true when you live in a senior apartment or retirement community? If you’re concerned like Kathy, read on to learn more about how rent increases are handled in senior housing.
Senior Housing Rents on the Rise
Housing is a major expense no matter what type of housing you choose, and costs are going up. In general, you should expect rental rates to increase by about 3% a year, based on several recent reports. This is true for senior living apartments, as well. Assisted living costs are growing at a rapid clip, averaging $4,774 per month as of April 2023.
According to the Genworth 2021 Cost of Care Survey, 10,000 baby boomers a day will turn 65 until 2030. Here are some of the increases in senior housing since 2020:
Assisted Living: Up 4.65%.
Nursing Homes: Up 1.96% for a semi-private room, up 2.41% for a private room.
Information about rent increases in independent living and senior apartments is harder to come by. But these rates have been reported:
For seniors living on a fixed income, a rent increase can make it that much harder to make ends meet. It doesn’t matter if you are paying for your housing from a retirement fund or with assistance from Medicare or Medicaid.
Handling a Senior Housing Rent Increase
When and how much your rent increases in senior housing depends on where you live, your income, and how much care you receive.
For instance, if you or your loved one in assisted living has a decline in health and needs additional care, this can result in a higher housing rate. This can include something as simple as one additional shower per week or eating in your room as opposed to the community dining area.
As for a senior apartment, a property manager can raise your rent as much as he chooses at the end of your lease — unless you live in a rent-controlled or rent-stabilized area, are governed on a local level, or have rules about how often and how much your rent can be increased. New York City, for instance, has a Senior Citizen Rent Increase Exemption.
However, a property can raise your rent only when your lease expires and with a suitable amount of notice (30 to 60 days). You also will want to make sure the increase doesn’t violate the terms of your lease. If you still feel your rent increase is too high, you can try the following:
- Negotiate with your property manager
- Do your market research to know what a fair price is
- Contact a housing mediation service or real estate lawyer
How to Avoid a Rent-Hike Surprise
No matter where you live, your rates, services, and fees should all be outlined in your admission agreement or rental contract.
In senior housing especially, it’s important that you understand whether and how management bills for extra services. Also, ask about how the senior housing community has increased rental rates in the past. For additional questions to ask, see After55.com’s Assisted Living Guide and Independent Living Guide.
If you do your homework when considering senior housing, there shouldn’t be any surprises.
