Deferred Management Fee Problem

Deferred Management Fee Problem - Retirement Village operators love the Deferred Management Fee business model and although likely to concede some changes to the industry after the AVEO 4 Corners revelations the likelihood of changes to the DMF model is low.

One of the main reasons there is unlikely to be any changes to the model is that legislators and industry regulators simply do not understand the impact the model has on the capital base of retirees over time.

The table below highlights the negative impact on retirees of the Deferred Management Fee model for retirement villages and the gains in capital value to a retirement village developer/operator.



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