What are retirement village exit fees?

How these charges help finance your retirement lifestyle

Today, many retired seniors choose to live in one of Southeast Queensland’s many dedicated retirement villages. And it’s not hard to see why!

Perhaps it’s the resort-like facilities, with swimming pools, walking tracks, bars, and bowling greens in easy walking distance. Or maybe it’s the clear benefits of living in a secure, close-knit community of like-minded people at similar ages and stages of life.

Yet for all their undoubted positives, one question about retirement villages that often isn’t fully understood is their costs – and in particular the exit fees payable.

Let’s take a look at retirement village exit fees, how they are charged, and what you can expect to pay for the tremendous lifestyle benefits of retirement village living.

How exit fees are charged

As their name suggests, exit fees are charged when you leave a retirement village. They are also known as Deferred Management Fees (DMF) or Departure Fees.

When you enter a retirement village, you will pay a lump sum called an Ingoing Contribution or Entry Payment. This is essentially a security deposit that secures your lease and your right to reside in your villa.

This Ingoing Contribution is paid up front, and in addition you will pay a monthly fee while you live in the retirement village. These monthly fees cover a range of general services, including the upkeep of the village, council rates, water, buildings insurance, lifestyle amenities and more.

Then, once you decide to move out of the retirement village, the Ingoing Contribution payment will be returned to you – less the Exit Fee payable and any additional charges according to your contract.

So how much will your Exit Fee be? At Renaissance the exit fee is 36% if you have lived in the village for four years or more. If you leave before the capped four years, the exit fee is charged at 9% for each year that you lived in the village.

Why do retirement villages charge exit fees?

There are a few reasons why retirement village operators charge exit fees but the two main purposes are firstly it represents the cost of your accommodation and secondly and most importantly it allows the village operator to re-invest back into the village community.

Payment for accommodation

Your ingoing contribution is a refundable security deposit that is refunded to you when you leave the village. The exit fee represents the cost of your accommodation during your stay – similar to a post-paid rental lump sum.

Re-investing back into the community you live in

The Exit Fee is the only charge that allows Renaissance to reinvest back into the village, through capital replacement works, maintenance of communal facilities, and village upgrades. This helps maintain value in your home and community, which is crucial when it comes time to sell.

It’s important not to let Exit Fees scare you away from enjoying your best retirement lifestyle. Do your own research, and understand what these fees pay for and what you will be responsible for. At Renaissance we run monthly Information Sessions that help you understand the elements and financial costs of entering, living and exiting a Retirement Village.

Discover the advantages of independent retirement living

If you’d like to learn more about retirement village life, we invite you to come and see for yourself why people choose Renaissance Retirement Living at Victoria Point. Our community is designed so active retirees can live full, fun, and friend-filled life in a beautiful resort-style environment.

Please join us for an information session over lunch. Bring your family, meet some residents, ask questions, and have a tour of our stunning village.

Call today on (07) 3820 7700 or contact us to book a spot at our next information session and morning tea. We would love to meet you!