Sick of explaining what a DMF is to almost every potential customer and seeing the glaze on their eyes when you mention they are “buying into” the village?
LASA's Principal Living & Seniors Housing, Paul Murphy (main picture), says the contract terminology is complex and confusing. With six states undergoing some degree of retirement village legislation reform, he believes there is a great opportunity to change the terminology in the new legislation.
“Terms such as ‘ingoing contribution’, ‘exit entitlement’, ‘premium’ and ‘deferred management fee’ are not terms that clearly articulate their intent,” he said.
“The Deferred Management Fee is also foreign to prospective residents. It is not really a fee. It is the lease payment for tenure in the village.”
Paul said LASA has advocated for more appropriate, consistent language in regards to retirement village contracts across the country (see graphic above).
