It is no surprise that the slowed real estate market, failed financial institutions, dried up access to debt and plummeting stock market conditions have all contributed to all-time lows in assisted living stock market valuations.
It is no surprise that the slowed real estate market, failed financial institutions, dried up access to debt and plummeting stock market conditions have all contributed to all-time lows in assisted living stock market valuations. Many assisted living providers working closely with SNAPforSeniors report occupancy down as prospective residents can’t sell their homes at the prices they wanted. In the majority of cases, the homes are taking about three times longer to sell and move-in timeframes are protracted as compared to 2007. Both scenarios result in seniors not having the available proceeds from the sale of their homes to use toward down payments and monthly fees for moving into senior living in a timely way. The adult children who might have willingly contributed toward their parent’s transition by picking up some of the senior housing costs now have greater reluctance or can’t afford to step up due to their own shrunken “nest egg” and competing financial obligations.
So what is SNAPforSeniors seeing as creative, proactive solutions to respond to these challenging market conditions? To help families make the decision to move now rather than later, some innovative chief marketing officers have implemented incentives such as coupons offering cash toward moving fees or paying for a professional move manager (to find a move manager- check out nasmm.org). These options help with the logistics and coordination of the physical move and to minimize the psychological barriers. Others are waiving expensive move-in deposits or giving cash coupons to families to use toward transition costs. We have also heard that some larger providers are facilitating bridge loans from outside financial sources (such as
Elderlife Financial Services) at low interest to provide working capital until cash from the home sale becomes available. Many facilities accept credit card payments to help with move-in fees and offer respite stays to relieve caregivers and to give seniors a chance to experience living in a community before making the move.
Providers are also playing a larger role in assisting families in their efforts to seek other sources of financial assistance. For example, for eligible veterans and surviving spouses or couples, the Veterans Administration Aid and Attendance Program is a Federal benefit provided through the Department of Veterans Affairs that offers up to $1,800 per month. Go to
benefitscheckup.org to see if you are eligible. Some facilities offer help to cover rent and fees while awaiting payment from this benefit. Another creative option is to search for “friendship suites,” senior units in many facilities that unrelated seniors can share for both companionship and to help live within a budget.
Just yesterday we received an email from an assisted living provider in the SNAPforSeniors database notifying all local professional referral sources and leading online senior serving sites that they are offering $10,000 referral fees for placement of a resident. This is double or triple the usual and customary fee paid for placement in most assisted living communities (SNAPforSeniors does not accept referral fees for resident placement at any facility).
These tough economic times require senior housing operators and families to think outside the box if they want to see their loved ones settled soon in the right retirement community, life-care community or assisted living community. My advice is for the senior and the family to discuss what the mental, financial and physical hurdles are to relocating now. Then check out the senior housing options that best meet their lifestyle and care needs. Have an exploratory conversation with the desired housing provider about how they can help facilitate a timely transition that is truly in the best interest of the older person. You might be surprised by the negotiating power you have and how soon you can experience peace of mind from knowing that your loved one is safe, socially stimulated, eating healthier and spending less in the long run as compared to remaining in their current home situation.