What happens to a unit or apartment once the resident has left is one of the most contentious issues in a retirement village. The government's new national code of practice says units should be refurbished to a standard equivalent to when the person first moved in, less wear and tear.
But it seems village operators have got some work to do.
Gisborne's Betham Lifestyle Village charges a flat 6 percent fee for refurbishment costs, and Christchurch's Cashmere Court charges 1 percent a year. Other villages require units to be at a "marketable standard" or "as new" condition.
It will be interesting to see what changes these villages' operators make after the code of practice comes into force in September. But the Retirement Villages Association fears the refurbishment provisions will cost large operators several million dollars.
The key issue is that there's often a wide gap between the actual amount spent on refurbishment and the amount that is deducted for it as part of these contracts. The Retirement Commission is currently investigating a number of complaints from residents about what they've been charged for the costs of refurbishment.
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