Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Retirement village company amends fee agreements

Retirement village company amends fee agreements; residents benefit

Retirement Assets Limited (RAL), a specialist retirement village company with developments in Christchurch, Auckland and the Bay of Plenty, has amended its fee agreements in a move to strike a fairer balance for village residents and their families.

 

With immediate effect, the company will not charge any on-going fees to residents or their estate once a property has been vacated.

RAL Director, Graham Wilkinson, explains: “Typically, retirement villages continue to charge weekly outgoings fees after a property becomes empty. These service and maintenance fees are outlined in village contracts and are usually applied until the property has been re-sold.”

Mr Wilkinson says these on-going fees offer no benefit to residents and have the potential to cause upset, particularly where a property remains empty for a long period of time. He adds that the fees also provide little incentive for village operators to re-sell vacant properties as quickly as possible.

Another change RAL has introduced (again, favouring residents) includes that if a unit is not sold within six months, the company will add back any deferred management fees previously deducted to the sum repaid – at the same rate as they were originally deducted or amortized.

“We say that if it is good enough for us to charge a resident management fees when they live in the village, then it’s only fair that, if a property takes longer than anticipated to sell, we reimburse these fees at the same rate.”

Mr Wilkinson was sure no other company in New Zealand makes this commitment. 

“We are committed to ensuring residents within our villages experience the absolute best of everything in their retirement years – and this includes our contractual terms.”


Already, several solicitors had contacted the company and expressed a positive view about the changes.

 

Rob Wilson, Chairperson of the NZ Retirement Village Residents Association (RVRANZ) also welcomed the move and congratulated the company on taking a proactive stance in resolving areas of possible dispute.

 

“We feel that agreements can sometimes be biased towards the operator and this initiative by Retirement Assets Limited is the sort of thing that the Residents Association would like to see become mandatory.”

e n d s

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>


PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>