Ask a Question

How much of a rent increase is acceptable in an Assisted Living facility?

In Sacramento, Calif. my mother's assisted living place is increasing her rent & care fees a whopping 8.8%. The last 2 years they increased the fees 5% each year!

Is there some kind of rent or fee control so residents don't go broke?

They are, by the way, doing an extensive & expensive remodel of the facility which will take about 18 months!

Is there a government place to complain to get get help for seniors on a very limited & small income? She is not eligible for VA benefits, she has too much in the bank right now.

Thank you for any information.
Status: Open    Nov 23, 2015 - 07:27 AM

Finance

Do you have the same question? Follow this Question

1 answer

Expert Answers

Jan 29, 2016 - 10:38 AM

Honestly, there is no upper limit on rate increases. From the business perspective, 10% is pretty extraordinary. 2-5% is most common. 8.8% fits into an Assisted Living that is likely trying to bring your mother's grandfathered rate closer to the current market rate.

If you mom has been at Assisted Living long enough to have 3 rate increases, she is on a rate from 2012 or 2013. Senior Living was different back then, as was the situation in healthcare and in our country in general. I think we can all agree that the economy has taken a dramatic turn over the past 4 years. Factor that into the fact that you live in CA, which has had extreme economic changes that have impacted everything from food to water to wages.

I understand your frustration, but - and I'm sorry if this sounds callous - you are probably lucky that your mom's increase has been 8.8% and not 10 or 15% or higher. If you still want to pursue next steps, I would recommend calling your local ombudsman. Be sure to inquire with your mom's Assisted Living on the current market rates to compare them to her rent - you may be surprised how little she is paying in comparison.

To answer your other question, the only state law I know of refers to notice given to a resident upon a rate increase. It is my understanding that there is additional notice required when raising rates above 5%. Please inquire with a local attorney for a full understanding of your state rental laws and how they apply to eldercare facilities.

Voted Best Answer

Jan 29, 2016 - 10:38 AM

Honestly, there is no upper limit on rate increases. From the business perspective, 10% is pretty extraordinary. 2-5% is most common. 8.8% fits into an Assisted Living that is likely trying to bring your mother's grandfathered rate closer to the current market rate.

If you mom has been at Assisted Living long enough to have 3 rate increases, she is on a rate from 2012 or 2013. Senior Living was different back then, as was the situation in healthcare and in our country in general. I think we can all agree that the economy has taken a dramatic turn over the past 4 years. Factor that into the fact that you live in CA, which has had extreme economic changes that have impacted everything from food to water to wages.

I understand your frustration, but - and I'm sorry if this sounds callous - you are probably lucky that your mom's increase has been 8.8% and not 10 or 15% or higher. If you still want to pursue next steps, I would recommend calling your local ombudsman. Be sure to inquire with your mom's Assisted Living on the current market rates to compare them to her rent - you may be surprised how little she is paying in comparison.

To answer your other question, the only state law I know of refers to notice given to a resident upon a rate increase. It is my understanding that there is additional notice required when raising rates above 5%. Please inquire with a local attorney for a full understanding of your state rental laws and how they apply to eldercare facilities.

Answer this question

Recently Active Members