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When it comes to choosing a senior living option, many seniors and their families grapple with the question of whether to rent or buy. For some, it makes more sense to join a senior buy-in community, like a continuing care retirement community. For others, a senior rental community is best.
“This is something I’m asked about a lot, and understandably so, because the financial models between the two are dramatically different,” says Brett Koenig, managing partner at Senior Living Search Partners. Above all, she encourages families to weigh their needs — financial, emotional and medical — both now and in the future, when deciding between senior living buy-in vs monthly rentals.
Here, Koenig and other experts provide specifics about the pros and cons of a senior living buy-in vs. monthly rent, important financial considerations and how to make the right choice for you.
Key takeaways
- Senior buy-in communities require you to pay an upfront “buy-in” fee, which ensures that you’ll be able to receive care now and as your health needs change.
- Senior rental communities don’t typically require high entry fees; instead, you pay monthly rental fees.
- Senior rental communities offer more flexibility, but buy-in communities offer the peace of mind of knowing that you won’t need to relocate if your health needs change.
What is a senior living buy-in community?
The most common type of senior living buy-in communities are continuing care retirement communities (CCRCs). These communities “offer independent living, assisted living and skilled nursing within one campus,” says Moti Gamburd, CEO of CARE Homecare, a California home care agency specializing in Alzheimer’s and dementia care.
How it works
Joining a buy-in community requires paying a “buy-in” fee. This fee secures a spot in the community and ensures future access to the full spectrum of care, “so as residents age, they can transition to higher levels of care — like assisted living or even skilled nursing — without needing to move to a new community,” Koenig explains. In addition to the buy-in fee, residents also pay a monthly fee, which covers the cost of maintenance, services and amenities.
Typical amenities and services
CCRCs typically offer higher-end amenities, says Jaime Roberts, a licensed nursing home administrator, assisted living manager and aging policy advocate at The Help Project. These amenities might include:
- Fitness centers.
- Cultural programming, such as live music and outings to attractions.
- Dining.
- Transportation.
- Housekeeping and laundry service.
Average cost
Cost varies considerably from one buy-in community to another. “The buy-in cost typically ranges from $100,000 to $1 million depending on the location and unit type, with monthly fees on top of that,” Gamburd shares. As for monthly fees, the national average cost of a CCRC is $3,353, according to the NIC Investment Guide for 2024.
What is a senior living monthly rental?
Senior living rental communities are exactly as they sound: they are senior communities that require a monthly rental fee. Unlike buy-in communities, there typically aren’t significant entry costs or investments. New residents may need to pay a simple security deposit, community fee or membership fee prior to move-in.
How it works
A rental community is usually simpler and more straightforward than buy-in communities when it comes to pricing and terms. “Think of it like renting an apartment month-to-month,” Koenig describes. Generally, you don’t need a long-term lease at a senior living rental community, she adds, although some communities do request 30-days’ notice when a resident plans to move.
“The appeal of rental options is the flexibility. If a resident needs to move or their finances shift, they’re not financially tethered to a long-term contract…”
— Brett Koenig, senior living expert and advisor
Typical amenities and services
In most cases, Koenig shares, residents in rental communities pay an all-inclusive monthly rate that includes things like:
- Meals.
- Housekeeping.
- Basic utilities.
- Transportation.
- Activities.
Sometimes senior rental communities also include help with care needs; however, if you have higher-level needs — such as help with activities of daily living like bathing, dressing and mobility — you may need to pay extra monthly fees or hire outside help to assist you.
Average cost
Similar to senior buy-in communities, the costs for senior rental communities differ considerably from one community to another. “Monthly costs vary by region and level of care but usually range from $2,500 to $6,000,” Gamburd says. “Memory care or higher levels of support can increase that amount.”
Quick comparison: Senior buy-in vs. monthly rental
| Senior Living Buy-In | Monthly Rental | |
| Cost | “Buy in” fee of $100,000-$1 million, plus monthly maintenance and service fees. | Monthly rental cost between $2,500-$6,000. Possible deposit prior to move-in. |
| Amenities | Housekeeping and laundry, transportation, fitness centers, dining, cultural activities, scheduled social activities. | Basic utilities, transportation, meals, housekeeping and scheduled activities. |
| Terms | The “buy-in” fee secures a long-term spot in the community, as well as access to care services. Refunds are not guaranteed if you need to move. | Month-to-month contract. May need to give 30-day notice prior to move-out. |
| Access to care | Access to future care is secured by the “buy-in” fee, including smooth transitions between independent living, assisted living and skilled nursing. | May need to pay extra for care services or hire in-home caregivers. |
The pros and cons of buy-ins vs. monthly rentals
If you’re deciding between a senior living buy-in vs. a monthly rental, it can be helpful to consider the pros and cons of each option.
Benefits of buy-in communities
Buy-ins are a great option if you’re looking for long-term stability, says Koenig. They are especially suited to people who expect to need increasing levels of care in the future, such as people with underlying medical conditions, chronic medical conditions or early signs of dementia or cognitive decline. “There’s peace of mind in knowing that you shouldn’t have to move again,” Koenig shares.
Benefits of monthly rentals
Senior rentals are typically best for seniors who want flexibility. “Rentals are ideal for seniors who value short-term options or who may already be managing uncertain health outcomes,” says Gamburd. They are also better options for people who don’t have the cash upfront to pay buy-in costs, which can be steep.
“Buy-ins shift your financial burden forward — you prepay for peace of mind and predictable care costs.”
Jaime Roberts, senior living administrator and aging policy advocate
Drawbacks of buy-in communities
Probably the biggest drawbacks of choosing a buy-in is the cost. Not only can the upfront costs be very high, but you will also have to continue paying a monthly fee on top of those up-front costs. That means you must have a constant flow of income to cover your ongoing costs.
Drawbacks of monthly rentals
The pitfalls of rentals are that their monthly fees can increase over time, and you may end up paying more overall to live in a rental than buy-in communities, Gamburd explains. The other major issue is that if you end up needing more care as you age — as many seniors typically do — you will likely have to move, which can be both stressful and disruptive.
| Benefit | Senior Buy-In Community | Monthly Rental |
| Low entry cost | No | Yes |
| Includes access to services and amenities | Yes | Yes |
| Guarantees access to care | Yes | No |
| Offers long-term stability | Yes | No |
| Offers short-term flexibility | No | Yes |
Cost considerations for senior buy-ins vs. rentals
Whether or not a buy-in or rental will be financially viable can vary from one senior to another. Each person has a unique financial picture and different resources available to them.
Financial considerations for buy-in communities
“Buy-ins shift your financial burden forward — you prepay for peace of mind and predictable care costs,” says Roberts. If you live there for several years, the value can be tremendous.
As you look into buy-in options, Koenig recommends asking for a detailed contract so that you understand what will happen if you end up moving out of the facility. “Some buy-ins are partially or fully refundable, depending on the contract, which is something I always advise families to review carefully,” she says.
Financial considerations for monthly rentals
Rentals shift any potential financial risks to the future, Roberts explains. “If your needs escalate quickly or unexpectedly, you could deplete assets faster,” she notes. “That may be fine for people with strong family support or insurance, but risky without a long-term plan.”
At the same time, rentals may carry less financial risk, depending on your circumstances. “The appeal of rental options is the flexibility,” Koenig notes. “If a resident needs to move or their finances shift, they’re not financially tethered to a long-term contract or stuck waiting to get a percentage of their entry fee back from the community.”
How to choose between a buy-in or monthly rental
So, how does one choose between buy-ins and rentals? Koenig encourages seniors to take stock of their care needs, both now and in the future — coupled with financial and familial needs. Consider the following:
- Potential long-term care needs. “Some seniors love the idea of staying in one community for life and are willing to pay more upfront for that peace of mind, despite the fact that there are rental communities which offer different ‘tiers’ of care, as residents need more assistance over time,” Koenig says. “Others value the ability to move again if something changes.”
- Proximity to loved ones. “If a senior has a strong support system nearby, they might not need the full continuum of care that a CCRC offers,” Koenig says. For seniors without close family nearby, or who have a history of health challenges, the structure of a buy-in community can be reassuring
- Desired lifestyle. Touring any communities you are interested in before committing is vital. Ultimately, lifestyle, health status and financial goals should guide the final decision, says Gamburd.
- Contractual and financial obligations. Gamburd strongly recommends reviewing contracts with a financial advisor before making your final decision. Additionally, consider consulting an elder law attorney to discuss long-term planning.
If you need more support as you consider the options, geriatric care managers are great resources for you. Additionally, discussing medical conditions and care needs with your health care provider can also help guide your decision making.
