Troy Churton, former Commission for Financial Capability retirement villages national manager shares tips on factors to consider. Video / NZ Herald
The $6.3 billion retirement giant Metlifecare is still asking many of its residents to pay for repairs and maintenance, according to two groups who want change after a Commerce Commission letter to 12 owner/operators last year.
But a Metlifecare spokeswoman says only new residents who bought from lastJanuary get repairs and maintenance covered while those who bought before then pay for that themselves but in return get fixed weekly fees.
Jon Duffy, Consumer NZ chief executive, said Metlifecare occupation rights agreements still allowed it to charge its residents for maintenance and repairs and that was “unfair” although the spokeswoman objected to the use of that word.
Di Sinclair, Retirement Village Residents Association national vice-president and complaints co-ordinator, says she is getting ongoing complaints from Metlifecare residents about having to pay for maintenance and repairs.
Metlifecare chief executive Earl Gasparich. Around 7000 people live in 36 villages owned by Metlifecare.
Both want the commission to take action against Metlifecare, a privately owned business with $6.3b of assets.
Around 7000 people live in 36 villages owned by Metlifecare, headed by Earl Gasparich.
Vanessa Horne, the commission’s competition, fair trading and credit general manager, said: “The commission has received a further complaint from the association. The commission will consider any additional information provided and decide if further action is required.”
The Metlifecare spokeswoman said there was no plan to change repairs and maintenance charges for those on older contracts.
“We do not intend to alter our approach to repair and maintenance charges for historical and transitional period occupation rights agreements,” she said.
New residents pay a village fee that can be increased annually in return for Metlifecare covering repairs and maintenance. Those who bought before last January got fixed fees but pay for repairs and maintenance themselves, she said.
Duffy and Sinclair said Metlifecare residents having to pay to fix things they don’t own including curtains, carpets, and hot water cylinders wasn’t fair.
Consumer NZ chief executive Jon Duffy.
Duffy and Sinclair referred to last year when the commission put 12 retirement village operators on notice because their conduct risked breaching the Fair Trading Act.
Those were Ryman Healthcare, Arvida Group, Oceania Healthcare, Metlifecare and privately owned Heritage Lifecare Villages, Tamahere Country Club, Ultimate Care Group, Vines Co, Althorp Village, Coastal View, Ōmokoroa Healthcare and Palm Grove Partnership.
Sinclair said: “The problem retirees have right now is that operators like Metlifecare are open to taking responsibility going forward, but are neglecting the people already living in their villages. What we have is a two-tier system that’s working in the interests of village owners rather than retirees. We say that must change.”
Most members love retirement living and it would not take much to ensure the sector was fit for the next generation of retirees, Sinclair said.
The association wants the commission to take court action over the unfair contracts and Consumer NZ backs that, with Duffy urging the commission to hold village operators to account.
The Metlifecare spokeswoman said older contracts were entered into under different commercial terms whereby residents had fixed fees which was of significant financial benefit to them. Residents on those terms had not paid a cent over their fixed fees, through what has been a massive inflationary period over the past 18 months.
“As an operator, Metlifecare under-recovers on village operating costs. To be clear, we are not making huge money out of operating our villages. We rely on the resale of units for our returns. The repairs and maintenance charges agreed to by the resident, in their ORA, are not a profit line for our business,” she said.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.
