Senior Living Communities - Where Does Mom's Rent Go?

Retirement communities seem like a great idea ontour, and call them later for a personal chat. They will
the surface: like a cruise ship for seniors. Socialtell you. Most workers, and local property leadership
opportunities, wellness opportunities, fine dining,in these companies are disillusioned too. Or they have
special holiday functions, maintainence services,darker motives for staying in silence.
housekeeping; some have nurse stations, and someThere are many things I discovered in my tenures,
have full time LVN's represent a picture of completethat have turned me off to retirement communities
care just waiting to put it's arms around your agingas a viable future option for aging adults. I have not
parent.even touched on the average direct care-giver to
You and your parent tour a facility. The people areresident ratios of 1 to 20 :at the very best. This ratio
so nice. The place looks like a fine hotel. Everyone isis at the very root of the problem. Try caring for
so happy to see you. It must be heaven. Oops,twenty parents with two hundred challenges daily per
trying to avoid that! But as the last stop on route,parent, and you will get the picture. The cloth just
except of course for some of you, not a bad placedoes not stretch to cover the need.
to hang your silk scarf, and support hose.Higher corporate costs drive operational changes that
"That beautiful apartment is how much?" $5,000should concern adult children seeking quality residential
dollars a month..."and up!!!!????" You swallow. Subtle,solutions to caring for their aging parents. I do not
but hard. Your parent imagines friends,fun, privilege,believe that all upscale retirement communities really
bridge players, and chocolate. So where does yourfulfill their care giving promises: and today there are a
rent go? I will give you a hint: it is not dining services,lot of other alternatives you should also consider.For
or housekeeping, or maintenance, or capitalthis much rent ( and more), similar services, are
improvements of health care, or activities. In manyoffered for this inclusive price: you should, and do
upscale senior living communities, you may beexpect five star level housekeeping, fine dining
surprised to discover that over 40-50% of thecomplete with special holiday programming; wellness
operational dollars go to marketing and not toprograms that focus on fall prevention, strength
services that directly benefit your parent.training, and balance education for your parent;
The reason is simple, senior residents move intomaintainence (toilets do have their problems, so do
these communities when they have an average of 5air conditioners/heaters, elevators).
years left to live. Sad, but factual. So inherent in allIf you are still considering an upscale independent
"retirement communities" is alot of resident turnover,living community of 100 to 500 occupants, consider
even when residents are content within theirthis: every year, you can expect a cost of living
community. Just imagine the numbers, when theincrease of 5-9 % in these communities: whether you
residents are not content.like it or not. And trust me, the corporation can
When a resident dies, an apartment becomes empty,always defend the reasons for the increase. You will
and corporate revenues shrink. Some corporationshave only the choice to pay or move.
have silent partners (investors), who do notAre independent living communities really full of
appreciate declines in occupancy levels. Lessindependent living seniors? Retirement communities
occupants, less profits. So a tremendous amount ofusually bill themselves as housing for independent
your rent dollars are spent attracting a continualliving residents: those with minimal mobility and
stream of new residents. 40-50% of the yearlyfunctionality issues. But in the last twelve years, I
budget at the property level is spent on marketing,have seen less truly independent residents, and more
and the recruitment of future residents. There ishighly dependent, borderline assisted living or early
even greater turnover, of course, when the servicesdementia type residents move in. The corporation is
are so-so. I was given $2.40 per person per meal,motivated simply by the drive to keep the place full.
based on two meals per day in one such upscaleThis creates a great demand on service personnel,
retirement community in La Jolla California, as recentlyoften untrained. If your parent is very independent, it
as 2007. Marketing first, nutrition? Somewhere muchcan be depressing. Your high functioning parent may
farther down the list.be seated in the dining room, at dinner, with
The caretaking mission represented by thesesomeone with incontinence issues. Or worse.
corporations is really not their mission. Profit, notSo before you sign that rental agreement, remember
people, again is the mission. The mission of most ofwhat I have shared with you : current and future
these communities is NOT to keep your parentsresidents are hunted constantly by full time marketing
content with cruise ship five star services, no matterpeople to keep the building full. We had 140 residents,
what they say to you, during your "free" marketingand two full time marketers: they were each required
tour and lunch. The corporate mission is to keep theto make 50 phone call contacts each day to
building full, create large revenues, make tremendous"prospects". Be comfortable but observant, when
profits,purchase more properties, turn them in totaking a marketing tour of a community: observe the
more goldmines. Oh, the hours spent in departmentalcare giving ratio; study the interaction of the
leadership meetings, working on the shape of theresidents with each other, and with department
spin.heads, peak into administrative offices, talk with the
Until late 2007, I functioned as the Dietary Directormaintainence director and the dietary director about
for one such "for-profit" corporation. This Carlsbadthe challenges of their positions. Call them later to ask
company, proudly announced, at the 2006 dietaryabout what they didn't say. Find out about the
conference for all dietary directors, that they made aproperty's budget: anyway you can. Look at the
NET profit of $11 million dollars with their 23food served; tour the kitchen, look in those walk-ins.
properties nationwide. More shocking is the fact thatFresh, homemade preparations or commercial
some of their properties went much of the yearpreparations? Sit down at lunch with a random group,
below full occupancy. You can just imagine the profitand not of the marketer's choosing. Always try to
at full occupancy. Al ot of profit for a company thattake an 'unplanned' tour, to get the most honest
on my campus, outside of dining services, had a lotinsight.
of resident turnover, unhappiness with other services,In conclusion, you may get more services, of a
and four executive director turnovers in two years!better quality, in smaller board and cares, than you
It is only about occupancy folks. The rest iswill in large retirement communities. Retirement
marketing.communities do have a huge socialization advantage:
I am not alone in my understanding of just howa lot more prospective playmates for your parents.
senior living communities operate. But, people on theBut they are not for everybody. Make sure to take
inside of the industry, do not speak up because: theyan industry savvy professional along with you while
are care-givers, and need these jobs. Some, like me,you are touring, and examining what you really ARE
become disillusioned care-givers, and leave thegetting for your rent.
industry. Find the honest broker on your marketing