Retirement is an exciting time in anyone’s life! A decision that is on many people’s minds is if they want to stick with owning their own home, or if they want the flexibility of renting properties. Retirement villages allow senior citizens to come together for new friendships, security, and additional amenities. Is it possible to rent in a retirement village, or are you required to purchase a piece of property?
Are you able to rent property in a retirement village? The short answer is, yes! Renting offers a different way to have the comfort of a retirement village, and still remain within your budget. Renting in a retirement village also offers a variety of benefits that you cannot find in a regular neighborhood or complex.
Retirement villages realized that their tenants want more flexibility in their living situations. While not all retirement villages allow renters, the locations that do are top-rated among the senior citizen community. Is renting the best option for those who are over the age of 55? Let’s talk about how it compares to traditional homeownership, and what renting in a retirement village is really like.
Advantages/Disadvantages of Renting In A Retirement Village
Below is a table to help break down the pros and cons.
| Advantages |
| Renting is more affordable than traditional homeownership |
| There is less commitment with renting |
| Retirement villages are more inclusive |
| They can create positive social environment among tenants |
| There is a large variety of on-site amenities |
| Disadvantages |
| They cost more than a traditional rental complex |
| Not all retirement villages offer rental properties |
| Tenants are not as diverse as they are in other areas |
| You can sometimes feel trapped or like you have no independence |
| Space can be limited in terms of apartments and outdoor areas |
Can You Rent in A Retirement Village?
More and more retirement villages are offering people the flexibility to live how they choose. Many senior citizens want the benefits that come from living in a community of people like them, but they also desire the flexibility to come and go as they please. Retirement villages know that their tenants want the ability to move wherever they want to. Renting is the best way to keep tenants happy and to allow those who may not be able to purchase a home to be part of the community.
Many types of rental properties are available to those seeking accommodations. Homes, apartments, and condos are just a few of the offerings available. Many of these rental properties not only offer high-quality accommodations, but the monthly cost can include benefits such as on-site entertainment, healthcare services, and even transportation services that are attractive to many who are seeking to live in a retirement village.
Renting at a retirement village is often safer for senior citizens because many have robust security measures set in place, and they are restrictive on who can live in the complex. These are many of the reasons why renting is an excellent option for those who are retired. There are also some disadvantages to living in retirement villages as well.
Although many think that retirement villages are strictly for those who are retired, the requirements are not always that strict. Many areas let people who fall within a determined age range live on the property. Most retirement villages have a minimum age of 55 years of age as one of the requirements for occupancy. Others only require one individual to be over the age of 55, which means that fellow family members may live in the home, apartment, or condo as long as they live there.
Should You Rent in a Retirement Village?
The ultimate question is, is renting right for you? If you are someone who is nearing retirement or sick of taking care of a full home and yard, then renting is an option that you may want to consider. Not only can you use the money from the sale of your home to join these communities, but it can also help prolong the income from your retirement settlement. Renting in a retirement village offers you the ability to feel secure in your own property, and it also allows you the freedom to live wherever you choose.
Retirement villages can offer additional benefits such as healthcare and transportation, that the average apartment complex may not provide. For many, the benefits that you receive from living at a retirement village outweighs the sometimes increased cost compared to other rentals in the area. Some even offer on-site entertainment, recreation, and restaurants and lounges, which reduce the need to leave the complex.
The income that you are receiving should make a big difference in your decisions. If what you are paying for the mortgage of your home is low, then staying where you are maybe the most beneficial in terms of finance You will have to set aside money for upkeep, repairs, and healthcare costs that are added on top of what you are already paying. Paying one flat rate for all of those features is a huge draw that has made renting in retirement villages so popular.
Before you make any decision on where to live, be sure to research your options. Know what the property you are looking at offers, and don’t be afraid to ask for opinions from others. Many complexes have social media that can have reviews from current or past residents that you can use to make your decision.
Is Renting Better than Home Ownership In A Retirement Village?
Renting has a few benefits that traditional homeownership does not offer. Renting is great for those who are on a budget because they can change their living situation as their income changes. Many people who are retired are living off a fixed income. The ability to reduce the risk of possibly losing your home is something most people are looking to do.
Even if a retirement village increases their costs, the individual can decide for themselves if the rental fits into their budget. If not, they can move to a place that fits better without having to worry about selling their current property. Renting is also an excellent option for those who do not want to work after retirement at a part-time job. Renting is also perfect for those who are looking to cut down on the maintenance associated with a home.
The cost of retirement village rentals tends to include the extra costs associated with homeownership. Taxes, maintenance, community dues, and even repairs can all be covered in those costs. Many of these retirement villages also offer on-site entertainment, which is an attractive draw to those who are on a fixed income. Keep in mind that not all retirement villages provide additional amenities, and it is essential to see what is included with your monthly rent.
With that being said, renting does cut down on the freedom that you get when you own a home. What you can do to your property is limited by the rules of the complex. Rental regulations can range from what kind of furniture you can have all the way to the color of your walls and floors. If you do not have the ability to drive yourself, you may also be limited to where you can visit.
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Why Do People Choose to Live in Retirement Villages?
Most people choose rentals because you can get into them quickly, they are much cheaper than a traditional home, and you do not have to worry about selling the property if you choose to move away. Retirement villages that offer rental properties understand that not everyone wants to be tied down to their home. For many, the benefits that come from retirement villages outweighs the additional fees that go with them.
While most of the benefits attract people to live in a retirement village after the age of 55, the same benefits can also be seen as disadvantages. It ultimately depends on what you are looking to get out of the community your home is located in.
What are the Advantages of Renting in a Retirement Village?
• Renting is More Affordable: For retirees and non-retirees alike, renting is a more affordable option. You can choose an apartment that fits into your needs and budget. With renting, you do not have the high cost of upkeep like you do with a home, and you can pick the right size place for your lifestyle without spending extra on rooms and amenities that you don’t need.
• There is Less Commitment: A lot of people just do not want the stress and commitment that is owning a home as they get older. Rentals cut down on the need for maintenance both inside and outside. It is also easier to change cites, neighborhoods, or even countries since a rental agreement ends or can be broken.
• It is More Inclusive: Many retirement communities offer more than the ordinary neighborhood or apartment complex. With the added costs of living in the area, they provide recreation and entertainment on site. Many have full-service restaurants and live entertainment among outdoor recreation facilities.
• It Creates a Positive Social Environment: One draw for retirees is that they are able to live in a community where everyone has similar interests and ages. Retirement villages encourage socialization, and it is often easier to find new friends in the complex.
• On-site Amenities: In addition to entertainment on-site, retirement villages usually have some sort of healthcare service, landscaping service, or transportation service, which makes the life of the tenants much more comfortable than if they had to do these on their own.
What are the Disadvantages of Renting in a Retirement Village?
• Costs are Higher Than Traditional Complexes: Renting in a retirement village is not as affordable as renting in a regular complex. This is due to additional costs that go along with the benefits of renting in a retirement village. The costs are made up for in entertainment, services, and upkeep with the property.
• Not as Many Units are Available: Although rental properties are gaining popularity in retirement villages, they are not available everywhere. Some retirement villages still require you to purchase property with them in order to receive the benefits. If you are looking at a particular complex, make sure you confirm that they offer rental options.
• Lack of Diversity in Tenants: Many people who choose retirement villages enjoy being around people who are similar to them. Others may feel like they are not getting the socialization they get from their everyday life. Most retirement villages are specific with who can and who cannot live and visit their property.
• Not as Much Independence: The idea of not having as much responsibility around the house may be a dream to some, but that can also make you feel like you are not needed. If you are unable to drive, then you can also be limited to where the village transportation offers.
• Space May Be Limited: Most retirement villages are built in small areas. While it may be helpful not to have to walk too far to reach the clubhouse, it also means that you are not going to have as much room as you did coming from a traditional home. Room for visitors, activities, and general lifestyle may be something to consider before committing to a specific property.
How Much of Your Retirement Should Go To Living Expenses?
Since most retirees are working with a fixed income, you may be asking yourself how much of your income should be going toward accommodation expenses? Most people who decide to move into a retirement community will put the from the sale of their house to cover the cost of their accommodations. For those who are choosing to live in a Life Care complex, the high cost of them is often covered by the amount.
Forbes estimates that your goal after retirement should be to spend 30% less on accommodation costs than you were before retirement. For many people, this can be anywhere from 15% to 25% of your annual income for those who are retired or those who are over the age of 55. If you are considering renting after retirement, the Forbes article contains a lot of useful information, you can read it here!
If you are approaching retirement, or possibly considering creating a retirement plan, you can talk to a retirement planner and ask about what your options are. They will let you know that not only locations around you that may be great options but also steps that you can take at whatever stage you are at in your life. Additionally, you can go ahead and start a savings account for the sole purpose of renting after retirement. A retirement planner may also suggest creating a separate bank account for rent, which ensures that you always have enough to cover your bills, and it can help you determine how much of your income you can spend on everyday life.
What is the Expected Cost of Retirement Rental Properties?
The cost of rental properties is determined by the complex in which it is located, the cost of living in different regions around the world, and the size of the place you are choosing to rent. Additional factors to consider may be determined by the amenities and extras that are provided by different retirement villages.
Fees per month can range anywhere from $1,000 to $5,000, depending on what is offered. Some retirement villages do not include the rent at this cost. There are Life Plan community options that require an upfront fee that can sometimes cost over $100,000. Although these costs seem to be higher, they cover more than the average monthly rate, which can cut costs for entertainment and additional living costs.
Those who are living in states such as Missouri may only spend around $2500 per month while people living in areas such as the District of Columbia are paying on average, over $6500 for regular services. Although there are apartments in those areas with better prices, the benefits you are receiving from a retirement village make up for it. There are also retirement villages that do not add to the additional benefits, which can keep the cost of some apartments under $1000.
Do You Have to be Retired to Live in a Retirement Community?
The majority of retirement villages do not actually need you to be retired in order to live there. They will most likely have a minimum age, usually 55, that someone in the household needs to meet in order to live there. If you are looking for a place for you and your mother, who is over the age of 55, as long as she lives in the household, you can live in a retirement community.
For those who meet the age requirements but may still be working, many of the occupants in complexes still have full or part-time jobs. Some like the security and stability of a retirement village, while others have planned out their budget to allow them to stay there. Some retirement villages even offer employment for tenants who are looking to stay active in a work environment.
