The Reason Behind Reinstatement Fees

People who are moving into retirement villages as well as those leaving are always perplexed when it comes to the number of fees and charges they have to deal with. This is important that the residents are aware of the purpose of every fee and charge and when it should be paid.

One of the few charges that residents have to deal with then they move out of a retirement village is the reinstatement fee. So, what is the purpose of a reinstatement fee?

A reinstatement fee is charged to a resident when he or she decides to leave their unit inside the retirement village. This is used for any costs that will incur during the refurbishing of the unit so it will return to its original before the resident moved in.

According to Richard McCullagh, a retirement village lawyer, the damage should be the only fee covered by the reinstatement fee and common wear and tear should not be included.

He also added that residents, who have a contract that started on or after the first of July in 2000, if applicable to the contract, are required to pay the reinstatement fee needed to make sure the residential unit is returned to its original condition before the occupants moved in. The only exception is the usual wear and tear in the unit.

If the contract you have with your retirement village is classified under short term lease and license, you are not considered a registered interest holder thus you are not to pay the reinstatement fee.

What can you do if they are charging you and you do not agree with it?

McCullagh said that the resident can ask for a quote specifying the usual wear and tear and those beyond this classification. After that, you can negotiate with the operator regarding the reinstatement fee.

This is why choosing a suitable retirement village for you is important such as one of the sunshine coast retirement villages. If you have concerns or issues with your current retirement village, it is best to consult for legal assistance.

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