The financial value of Siena Lakes

Much more than just a beautiful place to live

Created date

August 11th, 2020
This rendering portrays the lanai by the water at Siena Lakes.

This rendering portrays the lanai by the water at Siena Lakes.

When considering a continuing care retirement community, you also have to think about its financial value. Siena Lakes, the new Erickson Senior Living-managed community coming to North Naples, offers a onetime entrance fee, plus a monthly service fee to wrap all of your monthly bills into one. Together, they make choosing Siena Lakes a smart financial decision.

Retirement costs that are predictable

Siena Lakes’ onetime entrance fee secures your independent living apartment home. You have two unique options to meet your budget and lifestyle: an 80% refundable entrance fee and a nonrefundable entrance fee (you’ll find all the details are in Siena Lakes’ Residence and Care Agreement).

And with Siena Lakes’ monthly service package, you’ll be able to enjoy life without the hassle of surprise repairs. The community streamlines nearly all of your day-to-day expenses into a single monthly bill. Here’s the best part: the cost remains predictable all year long.

The monthly service package includes all utilities, property taxes, cable TV, and so much more: 

• Heating and air-conditioning 

• All utilities 

• Meal plan at our on-site restaurants 

Maintenance, including repair and replacement of all appliances 

• Fitness center, swimming pool, and other amenities

• Cable TV

• Regularly scheduled transportation

• 24-hour security and emergency response 

• Professional landscaping 

• 24-hour concierge 

• Biweekly housekeeping and linen service 

“When you sit down and work out the cost of maintenance, repairs, and everything that’s included here, it is a very good value,” says Joseph S., a resident of an Erickson Senior Living community.

Seven questions

As you research senior living communities, we recommend you ask yourself these financial questions:

1. What’s the occupancy rate? Look for a community with an occupancy that consistently exceeds 90%. For the past ten years, Erickson-managed communities have achieved an average occupancy rate of 95% compared to the industry average of 89%.

2.  How much does the monthly fee increase each year? The monthly fee typically increases annually to reflect the cost of living. However, if the monthly fee goes up more than 3.5%, inquire further. What does the fee cover? What services or benefits are you receiving? For the past two years, Erickson Senior Living communities have averaged an increase of 3.4%

3. What’s the debt rating? Many communities carry debt to fund expansions or capital improvements. It’s important to ask how much and how that debt is rated. Fortunately, Erickson Senior Living communities carry no public debt and, therefore, no debt rating. 

4. How profitable is the community? Look for a community that brings in more cash than it spends. Fully developed Erickson Senior Living properties bring in about 15% profit. This money is reinvested into capital expenditures for community improvements. 

5. How much money is spent on upkeep? Look for a community with spending equal to at least 50% of depreciation. Erickson Senior Living communities had an upkeep ratio of 59% in 2019 and 66% in 2018.

6. Does the community have cash reserves? If considering a life care community, ask to review the actuarial reserve report, which shows whether a community has enough reserves to back up its commitments. If considering a fee-for-service community like Siena Lakes, ask whether the community maintains cash reserves. Erickson Senior Living communities establish cash reserves for community needs. 

7. How much influence do residents have? Residents should have a direct line of communication with management. Erickson Senior Living communities go a step further. A dedicated Resident Advisory Council works directly with community leadership to address concerns and influence important decisions. 

To learn more about making a smart financial decision to join a senior living community like Siena Lakes, request a brochure today.