Is it unreasonable for an assisted living facility to raise the rent by $700 per month during a national crisis that we are in?

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Is it unreasonable for an assisted living facility to raise the rent by $700 per month during a national crisis that we are in?

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So, Neverending, How did the negotiations go with your conference today? What happened? Will you keep Mom there, and did you get them to come down on the price? Thanks for updating us.

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No luck with that. They said there was a "billing error" of $400/month for Jan./Feb/March/April. I find that very difficult to believe and do not buy at all. It certainly is price gouging, opportunistic. We are not stupid and we know it is due to the Corona virus, because they had to hire more staff, have more work to do, but probably for legal reasons they do not mention Corona virus in their letter. The other $300/month was an increase in her level of care.

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May I ask where this is at? They may be having to pay hazard pay? Is this a temporary or a permanent raise. Have they made this a raise in level of care, or in room rates due to cleaning. I know that their cleaning costs and their costs for food and delivery is likely up, but this is an enormous raise. Have you looked at the things you signed when she entered? At my bro's facility it says may be raised 3% to 5% a year, and I am certain we will see the 5%. Have you spoken to them. I think many will be taking seniors home simply because they are afraid to leave them in care, but wow. Where is Mom's facility located, and if not too intrusive, what were her rates before this happened and is this a raise for ALL residents with the explanation it is due to covid? You may be the canary in the coalmine to warn some of us? I am certain many seniors could not afford this raise.

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It is located in Wickliffe, OH. I believe there is some basic increase to all residents, but I have no way of knowing how much. $300/month increase is due to an increase in level of care for my Mom, however, the executive director told me the other $400/month was a "billing error". I do not believe they could make such a huge billing error. Of course their letter makes no mention of the Corona virus, when we all know that that is exactly what it is - totally opportunistic,exploitative price gouging. They know they got you.

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Neverending, the rest of the extra cost could be that the Staff is serving meals to the residents in their individual rooms.

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Yes, but still -- the staff are only putting an extra few minutes in per resident and they'll charge an hour's worth of "service." I saw it happen on my parent's bill. I watched how the meal distribution was done (several years ago). From putting food in foam container, to on the cart, down the halls, to the door, knock, knock. Then a circuit to pick up any servers if used. They are not cleaning dining rooms, so this is not an additional chore even at this time to just package and deliver. Fee for service should be evened up to this "new normal."

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Great answers here already.

I noticed your reply to Countrymouse: '..they only give you 10 days to sign the papers.'; '..she's been there 3 months; there is no contract; and you can take her out any time.' This may be a blessing in disguise or a hidden downfall by not having a signed lease.

Others may disagree, but if you don't sign any lease for her apartment for the price agreed to, you risk not being protected from outrageous gouging or worse, unwarranted eviction. They can still go up on care needs if those increased significantly, but only with proper notice, and in line with the signed agreement between you and them. I'd get all in writing, a lease for protection for the base rent and 'extra care charges,' with all charges and care levels outlined specifically.

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There is no contract, no signed agreement. I have asked in writing for a description of the extra services, they would only tell me over the phone.

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Sounds like a Bait and Switch sales technique. Bring that up during the conference; it's worth a shot. It's an unethical sales technique that involves attracting a sale at one price, then quickly increasing the price or changing the product dramatically. Think about used cars and appliance "sales". That's kind of what it sounds like. Also, they might be leveraging your interest in staying due to the outbreak at this time; you could call their bluff and tell them you are ready to move her if the rate is increased that much. You can't afford that much of an increase with so little notice. I bet you can at least find some middle ground with them; perhaps agree at the last minute to a maximum 350/month increase, but don't immediately give in at the early stages of negotiation.

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It is definitely an unethical sales technique. In fact, at the beginning, as an incentive they told me that after Dec. 31, 2019, there would be $1000/month increase. That is why I took Mom in on Dec. 31, 2019.
The increased rent is effective on May 1, which is 30 days, however, I have to sign the papers within 10 days.

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An acquaintance of mine had her dad in one of the large AL facilities located in a large urban area. It cost $5000/month about 6 years ago. I'm sure it costs more now. Another acquaintance's BIL was placed in a nursing home 2 hours away in a less expensive area, and that cost $2800/month. So costs do vary wildly. Perhaps you should check around.

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I will be doing that as soon as this virus crisis is over. I have already started.

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Your profile says you are living in the same home that mom is. Are you in the same unit? Or the same facility?

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I am living in my own house, just 10 minutes from the where Mom is at the assisted living.

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Sometimes these rates are negotiable. Look around and see if any other assisted living facilities near you have openings, just for bargaining purposes. I know you don't want to move your mom, especially now. The facility probably knows that too.

If the $700 increase brings them in line with other assisted living places in your area, I'd pay it. If it does not, I'd bargain.

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3500/month (if my calculations are correct) is VERY LOW for assisted living. So her rate has been increased to $4200/month? As the other poster stated, the decision to increase rates was probably made months ago in order to keep up with going rates in your area. As a comparison, My mom's rate for a single room fancy assisted living started out at $4500/month five years ago here in the Denver area.
Can you consider other options for her such as a shared room? Have her needs gone up? Some facilities have "add-on" rates for a lot of services, such as assistance to the dining room, adult diapers, and laundry. Perhaps you can have a discussion with management and attempt a negotiation since I'm assuming this is a private-pay facility. It would probably be quite a hassle to move her at this time; look around at other comparable facilities in her area. Is this new rate the norm for her city? My mom's memory care facility rent was only raised once in the three years she was there, and it was about a 10-15% increase. They were in-line with other private pay memory care facilities in the area, and still reasonably priced.

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My Mom's needs have increased. She went from a Level B to a Level C, which is $300, so that does not explain the rest of the increase. The current rent is $3700. I will shop around. They have not given me their guidelines for the two levels, which I have asked for. Not very transparent! I will try to negotiate on Monday with the director and head of nursing. Mom has only been there 3 months and this increase is a huge shocker.

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What reason does the ALF give for the 19% increase?

I think you'll probably find that most of the increase was decided on several months ago. Did you receive no advance notice of it?

How long has your mother been resident there, and what does it say about rent increases in her contract?

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I am having a phone conference call with the director and head of nursing on Monday. They did switch her level of care from a B to a C. A level jump is $300 more, so where is the other $400? There was no advance notice. They only give you 10 days to sign the papers. My Mom has been there 3 months and there is no contract. I can take her out any time, but of course I am not going to do that. The current rent is $3700 per month which I know is a good rate, not too high.

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Is it unreasonable for an assisted living facility to raise the rent by $700 per month during a national crisis that we are in?

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