Assisted living deposits: refundable or not?

Before move-in, the community may ask for several payments at once: an application fee, a community fee, a deposit, the first month's rent. They look similar on the invoice, but the refund rules for each can be completely different. If your parent's plans change, or they move out or pass away early, what comes back depends on which label each payment carries. This post sorts the payments, shows two states' rules as examples, and lists what to ask before writing any check.

The kinds of money paid before move-in

Ask the community to label every payment in writing. Then use this table to know which refund question to ask:

The community fee is the big one. The CareScout Cost of Care Survey tracks whether communities charge a non-refundable community or entrance fee, separately from monthly rates. The assisted living community fee post covers what that fee pays for and how to compare it between communities.

California's rules: an example of strong limits

California's Health and Safety Code sets specific rules for residential care facilities for the elderly (the state's term for assisted living). Under section 1569.651:

• No damage deposits. A facility may not require, request or accept funds from a resident as a deposit against possible damages.
• One preadmission fee. "Preadmission fee" covers application, processing, admission, entrance, community or other fees paid before admission. Only one may be charged per admission, and every fee must appear in the admission agreement.
• Written disclosure. The facility must describe the costs behind the fee and state that it is refundable, with the conditions.
• Full refund if your parent decides not to move in before the preadmission appraisal is done, or if the facility didn't fully disclose the fee and refund conditions in writing.
• Partial refunds of the amount above $500: at least 80% if your parent doesn't move in after the appraisal or leaves during the first month; at least 60% if they leave during the second month; at least 40% during the third month. After that, a refund is optional.
• No preadmission fee or deposit may be required from recipients of the State Supplementary Program for the Aged, Blind and Disabled.

And if a resident dies, section 1569.652 says fees stop accruing once all personal property is removed from the unit, and prepaid fees for the time after that must be refunded within 15 days.

Florida's rules: how deposits must be held and refunded

Florida's assisted living contract law, section 429.24, focuses on how money is held and how refunds work:

• Money paid as security, or as advance rent beyond the next rental period, must be deposited in a Florida bank, kept separate from the facility's funds, and used only for the resident's account.
• Within 30 days of receiving it, the facility must tell the resident in writing how the money is held and name the bank.
• The contract must include a refund policy for transfer, discharge or death, with a prorated refund of any unused payment after allowed charges, including damage beyond normal use.
• If the facility plans to claim part of the refund, it must notify you in writing and give at least 14 days to respond.
• The refund is due within 45 days after the transfer, discharge or death. The state fines a facility that fails to comply three times the amount due, and half of that fine goes to the resident or estate.

Florida also addresses belongings left behind: if they don't prevent the unit from being rented, the facility may clear the unit and charge actual moving and storage costs, capped at 20% of the regular rate, after 14 days' written notice, and may dispose of items not claimed within 45 days after notification. That is one more reason to agree on a clear-out date with siblings early.

Other states have their own rules, and some have few. Ask the community which state provisions apply, and check with the state agency that licenses assisted living. Deposits are only one of the one-time costs at move-in; the costs families don't see coming post lists the others.

Questions to ask before paying anything

1. What is each payment called, and is it a fee or a deposit?
2. Which payments are refundable, in what amounts, and under what conditions? Where is that in the residency agreement?
3. If my parent decides not to move in, or can't because of a hospital stay, what comes back?
4. If she moves out or dies in the first three months, what is refunded?
5. Where is the security deposit held? Will we get written confirmation?
6. What can be deducted, and will we get an itemized statement?
7. How long after move-out is the refund paid, and to whom?
8. Is the apartment hold deposit credited to the first month's rent?

What to say before signing: "Before we pay, could you list each payment separately with what it's called, whether it's refundable, and the conditions? We'd like that on the fee schedule or in the agreement, so everyone has the same understanding if Mom's plans change."

The assisted living contract checklist covers the rest of the agreement.

Getting the money back at move-out

Refunds go more smoothly with a paper trail:

• At move-in: photograph the apartment, including walls, floors and fixtures, and keep the signed move-in inspection if there is one.
• At move-out: give written notice as the contract requires, remove all belongings (in Florida, the termination date for refunds is the day the unit is vacated and cleared; in California, after a death, fees stop once belongings are removed), photograph the empty apartment and return keys and fobs.
• In writing: request the refund, give a forwarding address, and ask for an itemized statement of any deductions.
• After a death: ask who the refund will be paid to (the estate or the person who paid), and have the executor's documents ready.

Notice periods and prorated rent are covered in moving out of assisted living: notice periods and refunds.

If a refund is refused: where to turn

1. Ask the business office in writing for the itemized deductions and the contract clause they rely on.
2. Compare that with your state's rules, from the state licensing agency.
3. Contact the long-term care ombudsman. The program advocates for residents of assisted living, and its services are free and confidential. The long-term care ombudsman post explains how to reach yours and what to bring.
4. For larger amounts or a formal dispute, an elder law attorney can review the agreement.

Frequently asked questions

Sources

1. California Health and Safety Code 1569.651 (accessed Sept 2026)
2. California Health and Safety Code 1569.652 (accessed Sept 2026)
3. Florida Statutes 429.24 (2025) (accessed Sept 2026)
4. CareScout: Cost of Care Survey 2025, Methodology (accessed Sept 2026)
5. National Long-Term Care Ombudsman Resource Center: About the Ombudsman Program (accessed Sept 2026)