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What is the Deferred Management Fee (DMF)?

The DMF is an amount you pay when you leave a village, rather than when you join. The figure is defined in your contract. 

The deferred management fee is a delayed (and deducted) payment you (or your estate) make on exiting the village. It is to cover the cost of the management and refurbishment of the village (roading, footpaths, lighting, communal amenities etc.). What this fee covers will vary from village to village. This may also be referred to as a 'Facility Fee', 'Village Contribution', 'Departure Fee' or 'Exit Fee' fees by some villages.

Read and understand your contract for ‘no surprises’ peace of mind

The amount deducted from the capital returned to you is calculated according to the conditions in your contract. It is usually calculated on an accruing annual basis to a maximum percentage of the purchase price. (The industry average is approximately 27% of the purchase price.) Some villages will guarantee that the DMF will not exceed a specific percentage of the purchase price.

An example of how this works in reality is  shown in this article on the village journey.

Find out more in the FREE book Where from here He ara whakamua book. Contact Eldernet for your copy 0800 162 706 or  team@eldernet.co.nz

You can view a copy of the book here.

Updated: 13 Jul 2023
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