All retirement village residents are expected to pay recurrent charges, including maintenance fees.

Recurrent charges 

You will usually have to pay recurrent charges paid on a monthly or quarterly basis. These charges cover the cost of:

• expenses of running the village, including staff salaries
• maintaining the facilities and common areas, such as gardens and recreational facilities

Recurrent charges are not capped by the legislation and may increase while you live in the village. You should make sure you check your contract to see how increases to recurrent charges may be calculated.

Personal services fees 

Personal services may be available to residents such as meals, cleaning, laundry and personal care. They are normally provided on a user-pays basis.

Metered utility services costs 

You usually pay for utilities that are separately metered and charged to your unit. These services include:

• telephone
• gas
• electricity 
• internet

Fee increases

Recurrent fees may need to increase to cover the expenses of running the village. The services and expenses must be outlined in the village budget.

Your contract may outline how ongoing fees will be increased such as a fixed formula or other calculation.

Fixed formulas may be based on:

• the Consumer Price Index
• age pension
• an individual’s circumstances or,
• a timeframe such as once every 12 months.

If no formula is specified in the contract, the operator must consult with residents. They must give at least 10 days’ written notice and justify the increase. The fee increase must be reasonable and based on real cost increases e.g. a third party maintenance or service fee increase.

Strata or community scheme levies 

A resident may need to also pay levies to a owners corporation or community association.

The levies cover the cost of managing, maintaining and insuring the common property. Levies are approved by the owners each year at the annual general meeting.

Special levy

A retirement village may need more money to meet unexpected expenses such as unexpected major repairs, or to fund a new service. The operator must consult with the residents and provide clear detail about the purpose of the special levy. Residents can challenge the levy if they feel it is unjustified or unreasonable.

Insurances in a retirement village

Insurance responsibilities depend on the type of ownership.

Freehold strata owners: may need to take out their own home building insurance if this is not taken out by the strata company and funded from levies.

Residents: are responsible for insuring their personal property and personal liability.

All residents also contribute to the village insurance premiums through general services charges.

Village operator 

The village operator must insure and keep insured, to full replacement value:

• the retirement village, including accommodation units except those owned by residents, and
• all communal facilities.

Insurance excess 

To reduce insurance premium costs, the village operator may take out insurance with an excess. For example, the village operator may have to pay the first $1,000 of any claim.

Other fees and charges

For more information about fees and charges, view our related pages:

• Moving in to a retirement village fees and charges
• Leaving a retirement village fees and charges