Reviewed by Rachel Levy, BSW, MPH, senior living expert Rachel Levy, BSW, MPH, and a senior national account manager at A Place for Mom, has worked in senior care for more than 20 years.
While an assisted living rental agreement is something your parent must sign to be accepted, many aspects of the contract are negotiable. An elder care attorney can help you review the rental agreement and guide you through the process. Some things you may be able to negotiate include the care fees specified in the contract, the process for breaking the rental agreement early, and the reasons for an involuntary discharge.
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Take our free care quizSince most assisted living resident agreements are full of industry jargon and legal terms, it can be difficult to completely understand the conditions of the agreement, which is why it’s beneficial to have an attorney review it on your behalf.
Stuart Furman, an attorney whose practice focuses on elder law in California, explained that most families do not consult with an attorney before signing an assisted living resident agreement. This is often because families don’t realize that some aspects of the contract are negotiable. Another reason is they’re feeling overwhelmed or pressured to make a decision – there’s an available spot, and the senior living community needs to know immediately if the family is going to take it.
“People don’t think they can change the terms,” said Furman, “but an attorney will help you understand what you’re signing, what the terminology really means, and what is and isn’t negotiable.”
As you look at senior living communities, make it a part of your research to review a sample assisted living resident agreement . Familiarize yourself with the provisions that are included in the sample, and compare them to those that you would want to be added. For example, what activities of daily living tasks do you need support with, or what are the monthly costs and fees?
Many assisted living resident agreements will be generic documents that favor the interests of the facility, so it is important that provisions are added to the contract to reflect the needs of the individual. The resident or family should insist the contract lists certain items:
According to Furman, the community should be able to accommodate care requests from individuals and families as long as the care is allowed under the facility license.
A number of communities will offer options such as laundry and housekeeping services or recreational activities . For residents who are attracted to a community based on the services and activities it provides, it is important to know how often the services are provided and if they are included in the community’s monthly fees. The contract should list the services and activities offered and any additional costs.
When reviewing the section of the agreement that refers to the physical space you or your loved one will be occupying, make sure the following items are clearly stated in the contract:
Ask about included amenities, and ask that they be listed on the agreement along with any additional charges. The following are great examples of questions to ask:
It’s also important to make sure that the agreement states the terms and conditions concerning a potential decision to leave the community, for health or other reasons.
Costs of assisted living can be complicated, so it is essential that you take time to understand the pricing structure of the community and request that it be highlighted in the contract. There are some common fee structures across assisted living communities:
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Take our free care quizWhile there are numerous ways communities charge for services and care, not all states require that communities include fees in the agreement, therefore it often is up to the future resident to make that request.
In addition, if you don’t see anything in your contract about cost-of-living increases, then ask the community when and how often prices typically increase and how much notice they will give you. Then, ask them to add these terms in the contract. According to Furman, cost of living increases are often negotiable.
An involuntary discharge is when a resident is forced to leave the community against their wishes. A review of what conditions would force an involuntary discharge, and options to pursue if that occurs, may be a valuable inquiry for families. Some examples of conditions that could lead to an involuntary discharge include the following:
While certain terms of discharge are not negotiable, beware when this part of the contract is left too vague. Furman points out that these terms are often left open because discharges happen on a case-by-case basis. But a community is bound to follow state regulations. So, if you feel the contract you’re considering is too vague, then ask for clarification or examples.
No matter what type of senior living care you’re receiving, the community must meet state regulations that govern discharge situations. Furman explained that California’s “Title 22” defines prohibited conditions as a lower level of care than the resident needs. In other words, if your care needs exceed the level of care that your community can offer, then you aren’t legally able to stay.
If you find a mandatory arbitration clause in your contract, Furman said cross it out. This is an area that is often negotiable.
A mandatory arbitration clause (sometimes called forced arbitration) requires disagreements to be settled by a third-party arbiter and not in court. Consumer Reports also suggests striking this clause from the contract, stating “there’s little risk that your loved one won’t be admitted if you try this. If the management insists that arbitration is mandatory, you can decide whether it’s worthwhile to agree.”
The contracts at continuing care retirement communities (CCRCs) differ from standard assisted living resident agreements, as they address the continuum of care the community offers. There are three common CCRC contracts, and the best type will depend on your family’s financial situation as well as your current and anticipated health care needs.
CCRCs, or life-plan communities, offer independent living, assisted living, and nursing care all on one campus. CCRCs are a great option for residents who would like to stay in the same place as they age, even if they end up requiring a higher level of care.
