Saturday, June 4, 2022

SENIOR HOUSING CROOKS

       As you know I have been looking at senior housing options for the last six months. 

      The learning curve is steep. With two of us making the tours, asking questions and taking information home, it's still confusing. Then they throw a few wrinkles in and the whole mix becomes more confusing. 

     The people giving you a tour are sales people. They just want to get their units full with paying customers. They try and make things as glamorous as possible. 

    I guess I've seen too many of these facilities and I'm starting to notice some devious practices. In one facility I asked if there was a damage deposit and how much. So I was told yes there is a damage deposit but you don't get it back. They use it to renovate the place when you leave. So I thought a damage deposit was to cover any damage you did? Nope, they use your damage deposit to replace carpets etc Who's to say what is done or if your damage deposit or does it  just go in their pocket. 

    Some places have a deal where you give them a dump truck load of money and you get free rent. In the case I saw , you gave them $300000.00 . So they take your 300000.00 and use it for another investment. I have never been able to follow the arithmetic on this deal. I can't get the answer they get.

    So if  an elderly confused senior looking for one of these places there easily could be some advantages taken by the business.

    I know I may have to live in one of these places some day. I hope I can avoid the tricks. 

40 comments:

  1. Oh my goodness! You have me really worried. The senior homes here cost an arm and a leg. It's spooky.

    ReplyDelete
    Replies
    1. It's very costly here too. However, I think most of them are decent.

      Delete
  2. Sounds like you're doing good research Mr. Red. It's all for profit. I've seen a newly-built one change owners and names 3 times in just a couple of years. Linda in Kansas

    ReplyDelete
    Replies
    1. We are doing the research in case something unforeseen happens and we have to make a quick decision.

      Delete
  3. You're so right! These places are shockingly expensive! Dear friend of ours has her Mom in one, touted to be the "finest, highest quality of standards" around, and with a price tag to prove it. Was a "buy-in" of $350,000, which they hold in "escrow," while she STILL pays $12,000 a month rent! Which covers food, cleaning, laundry, blahblahblah. Her care there has been no better than any of the freaking Medicaid only places. The food is marginal. Oh sure, when her Mom dies, the family will get a percentage of the $350G back, you know, because "costs" must be covered. It's shameful. So, the deal in the U.S. is, you'd better have bags of money, or NO money. Either way, your care isn't determined by one or the other. Sigh.

    ReplyDelete
    Replies
    1. As I said , I can't do the arithmetic on the buy ins. I'm not fussy about any of their wonderful services either. thanks for visiting Hiawatha House.

      Delete
  4. Unfortunately, there seems to be a tendency on the part of some people to cheat and take advantage of seniors in any way they can. If there are a few bucks to be made, no deed is too dastardly for some.

    ReplyDelete
    Replies
    1. Sadly , there are people who would take advantage of seniors.

      Delete
  5. Whoa - that $300,000 plan doesn't sound like a good idea, does it? Your research is turning up some interesting things. Keep us updated as you go, as some of us (or a lot of us) are also looking ahead to what we're going to do in a few years.

    ReplyDelete
    Replies
    1. The $300000.00 plan doesn't pass the smell test with me. We have now been able to pick two places that we would be happy with.

      Delete
  6. I went through this with my parents and it was complicated as you have said. I think if you know people that live in the place you are looking at a personal recommendation is most reassuring. Maybe you can talk to some of the people that actually live there and get their opinions.

    ReplyDelete
    Replies
    1. People are all too ready to give you recommendations. However, if you move in on someone's recommendation they get a cut in their rent. So it's still all about money.

      Delete
  7. My daughter is in the biz, so she would help us sort through it. I must say, her place is sold out — both the regular seniors housing and the new seniors apartments, which aren’t even built yet.

    ReplyDelete
    Replies
    1. Yes, I was surprised that most of these places are only about 75% occupied.

      Delete
  8. I hope you can avoid their tricks too. I also hope you find a place that isn't so tricky and is more interested in providing good senior housing with reasonable business practices.

    ReplyDelete
    Replies
    1. We know of two that we would be satisfied with.

      Delete
  9. It is such a shame. I hope you can find a decent place that won't cost you everything. The place near us is $4 - 6,000 a month, all in.

    ReplyDelete
    Replies
    1. I think we've got two that sound reasonable. we do not intend to move until we have to. we'd rather stay in our own house.

      Delete
  10. I can't imagine how confusing it must be to look at all the options. My mom chose a place where she bought a condo, but it was almost like a lifetime membership, and they will take care of her through graduated levels of care for as long as she needs. Now she's in memory care, no longer in her condo -- but still provided for. I have no idea how much she paid at the outset.

    ReplyDelete
    Replies
    1. I hope it works out for your family.

      Delete
  11. Which is why we should check these places out BEFORE we really need them, and/or bring along a friend or son or daughter to ask more questions. You're doing the right thing.

    ReplyDelete
    Replies
    1. Yes, it does help explain things when you talk to other people.

      Delete
  12. That $300000 deal doesn’t seem like a great deal for the senior.

    ReplyDelete
    Replies
    1. It doesn't pass the smell test with me.

      Delete
  13. That is interesting. Thanks. The farmer is not planning to retire until he is 90 so we have a ways to go before thinking about moving.

    ReplyDelete
    Replies
    1. You are living in a suitable place now. I wish the farmer luck in farming to 90! Thanks for visiting Hiawatha House.

      Delete
  14. I hope you can avoid the tricks too. It scares me today because so many people care only about the money and how to get more of it. We see what looks like nice places advertised but when you check out the price we find most are not affordable, at least for us. My brother lived in one for a few years but they kept raising the price on him until he finally moved out.

    ReplyDelete
    Replies
    1. The prices are scary. We often hear about seniors living in very poor accommodations.

      Delete
  15. It's good you are doing research. The whole senior housing here is just another corporate gimmick.

    ReplyDelete
    Replies
    1. We've got the same thing here and it's ruthless.

      Delete
  16. Senior housing is very expensive. You have to buy in and still pay monthly rent. I don't know if we can afford it. We are asking ourselves if we can stay in our own paid for house and hire out some services for as long as we can.

    ReplyDelete
    Replies
    1. I would hope that you have other options than giving them dump truck full of money. Yes, we plan to stay in the house as long as possible.

      Delete
  17. Best to do all that research and hope you don't need it.

    ReplyDelete
  18. Holy cow. I must say that the idea of $300,000 for senior housing was just mind boggling to me. I googled housing prices in your area and discovered that they are quite a bit higher than here. But still...this is a lump sum that you hand over and you don't own the property. You get free rent but if you die after a couple of years, they've sure made a lot of money off you, haven't they? I guess there's a lot I don't know about things like this. I'm glad you're researching in advance. I think that people are a lot easier to take advantage of when their backs are against the wall.

    ReplyDelete
  19. It is good that you have visited a few places and you are learning about this housing sector and its practices. Consequently, when you and The Micro Manager make your decision it will be well-informed.

    ReplyDelete
  20. I am glad you are checking these places out. I don't think there is even one here in my town that I could afford, so perhaps I'll have to stay in my rented apartment until the end.

    ReplyDelete
  21. Gosh, that’s depressing. Bad enough along the way we have had to deal with used car salesmen, cell phone providers, time shares and cable networks…it looks like in our old age they would give us a break.

    ReplyDelete
  22. Hi Red, I agree with you completely. Senior housing is tricky to get set up to make sure it can be an enjoyable home. I have heard of those deals where they take a truck load of money up front. I just can’t go for that. And I’ve heard that they may not give that money back if things don’t turn out well. And as for a damage deposit, if they don’t use it for damage, they might as well call it an admission fee. Another good post here. Thanks for your kind comment on my blog today. John

    ReplyDelete
  23. It's good that you are researching the ins and outs of these places. Always in the back of my mind is, can you trust the people and what they say.

    ReplyDelete