At The Village of River Oaks, we often speak with families and future residents who are trying to understand the differences between rental senior living communities and Continuing Care Retirement Communities (CCRCs), especially when it comes to financial safety. The recent financial hardships and bankruptcies experienced by well-known CCRCs in Dallas and Houston have highlighted why the rental model is increasingly seen as the more secure and sensible choice.
Many people believe that when they move into a CCRC and pay a significant entrance fee, they are purchasing equity in the community or “owning” a piece of their future. Unfortunately, that is a common misconception. In reality, residents become unsecured creditors. If the CCRC faces financial difficulties or files for bankruptcy, those entrance fees are not guaranteed to be repaid—residents often fall to the bottom of the list when creditors are reimbursed.
This was the case at was once one of Dallas’ most desirable senior living communities. Families paid large, non-refundable entry fees, believing they were investing in long-term stability. But after financial pressures—including new competition, costly renovations, and the impact of COVID—they filed for bankruptcy and ultimately converted to a rental model under new ownership. The same fate befell its sister community in Houston.
Rental communities like The Village of River Oaks on the other hand, offer a simpler and more secure financial model. Without the requirement of a large, upfront entrance fee, residents maintain greater control over their assets and avoid the financial risks tied to real estate and long-term contracts. That money can instead be invested in secure, interest-earning vehicles—giving residents peace of mind and financial flexibility.
Let’s also not forget the true cost of a CCRC, which often includes:
- Lost opportunity to earn interest on the large entry fee
- The non-refundable portion of the entry fee, which is simply forfeited
- Limited recourse in the event of a community’s financial failure
The future is unpredictable. Market shifts, economic downturns, and internal changes at a CCRC can quickly turn what once seemed like a “sure thing” into a stressful and unrecoverable loss.
At The Village on River Oaks, we believe senior living should offer freedom, not financial risk. That’s why our luxury rental model is designed to deliver the services, amenities, and peace of mind you deserve—without tying up your life savings.
Why The Village of River Oaks?
At The Village of River Oaks, we offer a luxury senior living experience without the burden of a massive upfront investment. Our rental model allows residents to enjoy upscale amenities, personalized services and a vibrant community—all with financial flexibility and peace of mind.
If you’re exploring senior living options, it’s important to consider a model that best aligns with your lifestyle and financial goals. Contact The Village of River Oaks today to learn more about how our rental model with a member fee can offer the ideal blend of luxury, flexibility and financial freedom!
To learn more about the benefits of our rental approach and to schedule a private consultation, contact us today to schedule a visit – 713.952.7600
