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What Percentage Increase in Rent Can Assisted Living Communities Charge?
Date Updated: July 26, 2024
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With over a decade of dedicated experience, Andrea Miller boasts an extensive background in healthcare writing and editing. Her expertise spans various facets of the healthcare industry, with a particular focus on nursing, senior care, Alzheimer’s disease, and public health. Andrea has also contributed her editorial talents to reputable publishers in the Philadelphia region, complementing her extensive freelance work.
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The percentage increase in rent that assisted living communities can charge is unrestricted by law, as there are no limits on annual rent increases for long-term care facilities. Generally, assisted living centers raise rent by about 3% to 7% each year.
How much will my rent go up each yearin assisted living?
Your rent will go up by about $1,620 to $3,780 each year in assisted living. That range represents 3% to 7% of $54,000, which is the median annual assisted living cost, according to data from the Genworth 2021 Cost of Care Survey.
Why do assisted living costs increase?
Assisted living costs increase to compensate for the rising cost of staffing, food and other necessities. They also produce robust shareholder profits, with generous operating margins of 20% on average.
In addition, many assisted living facilities use an à la carte model that assigns points to each service. Under this arrangement, patients receive an increase on their bill to reflect the number of staff minutes each time they require help with a task, such as bathing or dressing. As you need more care, assisted living costs increase.
How do families pay for assisted living?
Many families pay for assisted living out of pocket. Common strategies include using annuities, taking out a reverse mortgage or selling the person’s home to cover assisted living costs. Seniors in many states qualify for Medicaid waivers that pay for some long-term care expenses. Veterans are also eligible for long-term care (LTC) benefits, such as the Aid and Attendance program.