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 alike on the bill, but the refund rules for each can be very different. Your parent's plans may change, or they may move out or pass away early. Then what comes back depends on the label each payment carries. This post sorts the payments and shows two states' rules as examples. It also lists what to ask before you write 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. It tracks that fee apart from monthly rates. The assisted living community fee post covers what that fee pays for and how to compare it between communities.

How California limits deposits and fees

California's Health and Safety Code sets clear rules for residential care facilities for the elderly. That is the state's term for assisted living. Section 1569.651 says:

• No damage deposits. A community may not require, request or accept money from a resident as a deposit against possible damages.
• One preadmission fee. "Preadmission fee" covers any fee paid before admission. That includes application, processing, admission, entrance, community or other fees. Only one may be charged per admission. Every fee must appear in the admission agreement, which is the law's name for the residency agreement.
• Written disclosure. The community must describe the costs behind the fee. It must also state that the fee is refundable and list the conditions.
• Full refund if your parent decides not to move in before the preadmission appraisal is done. The same applies if the community 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. The refund is at least 60% if they leave during the second month, and at least 40% during the third month. After that, a refund is optional.
• No preadmission fee or deposit may be required from people who get the State Supplementary Program for the Aged, Blind and Disabled.

Section 1569.652 covers what happens if a resident dies. Fees stop building up once all personal property is removed from the unit. Prepaid fees for the time after that must be refunded within 15 days.

How Florida says 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:

• Some money must go into a Florida bank. That covers money paid as security, and advance rent beyond the next rental period. It must be kept apart from the community's own funds and used only for the resident's account.
• Within 30 days of getting the money, the community must tell the resident in writing how it is held. It must also name the bank.
• The contract must include a refund policy for transfer, discharge or death. The policy must give a prorated refund of any unused payment after allowed charges. Those charges can include damage beyond normal use.
• If the community plans to claim part of the refund, it must tell you in writing. You get at least 14 days to respond.
• The refund is due within 45 days after the transfer, discharge or death. If a community fails to comply, the state fines it three times the amount due. Half of that fine goes to the resident or estate.

Florida also has rules for belongings left behind. If they don't keep the unit from being rented, the community may clear it after 14 days' written notice. It may charge actual moving and storage costs, capped at 20% of the regular rate. It may also get rid of items not claimed within 45 days after notice. 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 rules 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?

A request to make before anyone writes a check: "Before we pay, could you list each payment separately? Please include what it's called, whether it's refundable, and the conditions. We'd like that on the fee schedule or in the agreement. That way 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. Keep the signed move-in inspection if there is one.
• At move-out: give written notice as the contract requires and 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. Then photograph the empty apartment and return keys and fobs.
• In writing: ask for 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. Have the executor's documents ready.

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

Where to turn if a refund is refused

1. Ask the business office in writing for the itemized deductions and the contract clause they rely on.
2. Get your state's rules from the state licensing agency and compare.
3. Contact the long-term care ombudsman. The program speaks up for residents of assisted living. 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)