Retirement homes: 5 things to ask before the big move

Prospective residents of retirement home unitscan manageto avoid troublesomesurprisesby taking the time to understand the fine print of their multipage contracts.

People need to understand how important choosing a retirement home is, saysDavid Harvey, Alzheimer Society of Ontario's chief public policy and programs initiative officer.

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"It's as important as buying a house or renting an apartment."

Here are five questions to ask when making that important decision of where to spend your golden years.

How reputable is the home?

Harvey suggests that potential residents get input fromtrusted family members or friends about their decision to find a retirement facility.

When visiting a potential home, retirees should come ready with lots of questions. People should check for a clean environment, respectful staff and nutritiousfood, among other things. Harvey recommends consulting checklistsfrom organizations likeAlzheimer Society Canadaor theAdvocacy Centre for the Elderlyto know what to ask when touring homes.Concerned Friends of Ontario Citizens in Care Facilities offers an 81-point checklist.

Those consideringa new home shouldcheck a company's reputation by chatting with past or present customers, and checking to see if it belongs to an accredited association, says Harvey.

Beware of deals that seem unbelievable, he says,as there aresome greedy anddesperate retirement home operators.

"A promise to care for you for life for a simple down payment and a monthly fee is too good to be true," he says.

How much will it cost?

People should not shy away from financial questions. They need to know exactlyhow much services cost, how they can terminate a lease and what financial penalties may apply afterending a contract early.

A promise to care for you for life for a simple down payment and a monthly fee is too good to be true.David Harvey, Alzheimer Society of Ontario

Rental retirement properties have different regulations depending on the province or territory, says JudithWahl,Advocacy Centre for the Elderly's executive director and senior lawyer. Some are governed by their provincial or territorial residential tenancies acts.

If a resident either moves to a different home because they need more assistance or dies, Ontario landlords are required to try to find a new tenant for the vacancy. They can also only charge the old tenant for 10 additional days of meal and care costs, regardless of how much time was left on the lease.

Prospective residents also need to consider inflation, she says.Retirement homes have different rules about how often they can increase rent or care rates depending on where in Canada they're located.

In Ontario, landlords can raise rent once a year generally by a percentage predetermined by the government. But they can raise service fees more frequently, so long as residents receive 90 days' notice.

"Can you afford to live there for the rest of your life?" says Wahl.

The Advocacy Centre for the Elderly suggests asking staff how frequently meal and service charges increase, when they were last raised and if the home is willing to freeze fees for a period.

What level of care will I need?

One thing people often don't realize is that retirement homes have no obligation to care for residents until they die.

"They don't have to take care of you forever," says Wahl.

People looking to move into a retirement facility must be "a good consumer" and research what services it provides. Thenthey'll know if the offerings match their needs and won't cause surpriseif their condition becomes too much for staff to handle.

Each retirement home only provides a certain level of service. The capdepends on each facility. Once a person's needs outgrow the home, itcan ask the person to move out even if they've signed a contract.

Do I need a lawyer?

Before signing a contract, it's a good idea to consult a lawyer, says Harvey. A lawyer can ensure everything the facilitypromised verbally is included in the fine print.

Lawyers can also make surethe contract separates payment details for housing needsand care needs, like meals or housekeeping. If the resident's care needs change, thenthose services aren't tied to the housing contract.

People looking to purchase a residence in a retirement home should see a lawyer, says Wahl.A lawyer can explain all the fine print and help negotiate unwanted clauses.

In a rare example of how things can go wrong, aCBC Go Public investigation found the families of two seniorsstuck paying high monthly servicefeesafter oneelderly ownermovedout of their purchased retirement residences and the other died. A legal consultation before purchasing could have explained that contractual obligation.

Should I rent or buy?

It's not very common to buy property in a retirement home, says Wahl.

However, for people considering buying, she and Harvey agree that it may be smarter to rent.

If buying, retirees need to be able to successfully negotiate their contract to stipulate they won't have to continue paying service fees if they have to move to a higher-care facility or their family won't have to pay their fees if they die, saysSusan Eng, vice-president for advocacy of the Canadian Association of Retired Persons (CARP).

For all three experts, the most important thing seems to be doing lots of research and knowing the fine print.

"You are in a pure contract arrangement, so you better do your homework now and know what you're getting into," says Wahl.