Most assisted living communities share common offerings that include help with daily tasks, meal preparation, social activities, and the like. However, despite these similarities, not all communities are the same. Each one has its own specific model that caters to their residents’ needs, and winnowing down your options can feel overwhelming at first. To ensure you choose the best community for your situation, make a list of specifics that you want in a residence, and be sure to tour several places. In addition to cost, other factors to keep in mind as you suss out different communities are levels of care, the types of living space offered, and proximity to services, hospitals, and shopping.
Keep in mind that if you need round-the-clock medical care, then a skilled nursing facility will be a better option than assisted living. You can visit Senior Care to learn more about nursing homes in your area including amenities, cost information, and reviews from families. Once you decide where to move, it’s time to determine what to do with your home.
Selling your home can be a great way to cover your assisted living expenses, as long as you think ahead. Find out how much money you can expect to gain from selling your home by checking out the current sales trends in your area. It’s important, however, to keep in mind that selling your home comes with its own set of expenses. According to Bankrate, you can expect to pay up to 10 percent of your home’s sale price in various fees. That said, you're going to want assistance with selling your home, since it requires completing many steps.
Renting out your home may be another good way to fund your assisted living costs, particularly if your mortgage is paid off. As opposed to selling your home, renting will provide a regular source of income that can help cover your care expenses for as long as you need. At the same time, this will allow you to keep your property in the family.
One downside is that it’s possible that you may not be able to charge high enough rent to cover your expenses. Find out what kind of rental income you can expect from your home by evaluating other rental properties in your area and comparing your rental rates against your existing monthly expenses. You also have to consider the potential costs of vacancies, evictions, and major maintenance before renting out your home. Fortunately, you will be able to claim many of these expenses as tax deductions.
Unless you have a family member willing to take on the duties of a landlord, you may have to hire a property manager to handle your rental. While a property manager will take care of everything—from finding tenants to collecting the monthly payment—Forbes reports that they will also take about 7-10 percent of your rental income.
If you have other ways to cover your assisted living costs, you may not need to sell or rent out your home. But holding onto your home means you will still be responsible for monthly expenses like utilities, property taxes, insurance, and mortgage payments. A good way to keep your home in the family and avoid these expenses is to pass it on to a family member.
Deciding what to do with the family home is more than a financial matter. It can be a very emotional decision as well, especially if you’ve spent decades calling this place home. Take a breath, take your time, and try not to rush into any irreversible decisions. Evaluate your options carefully to ensure you make the choice that best suits your needs and desires.
By Kelli Brewer
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