Rental village operator, SCV, with the Village Life and SunnyCove brands covering 59 communities and 3,301 ILU's, believes it has turned the financial corner thanks to leading its rental model away from the pension and Centrelink subsidies. Instead of receiving 85% of the aged pension and 100% of the government rental assistance in return for accommodation, three meals and linen service, SCVs new model charges market rental for accommodation, only with the resident having the option to buy food and other services. This has generated greater occupancy and higher returns, they report.
SCV also intends franchising the role of the village manager, creating independent small businesses, through revenue-sharing which will incentivize increased occupancy and profitability of the villages. The initial franchise fee of $120,000 is being prepared for 35 available SCV franchises.
Opinion
Retirement villages have Canberra’s attention – now the sector must prove its value
Three years after Daniel Gannon took the reins of the Retirement Living Council (RLC), the sector has achieved something his predecessor Ben Myers was never able to: national recognition in Canberra. This is just the fist step. Retirement villages now need to capitalise on this moment. Here’s how.
