What is a serviced apartment

A serviced apartment is usually a studio or one bedroom apartment within a retirement village designed for safe, supported living.

Housekeeping

Bed making, regular cleaning, towel replacement and linen changes are commonly included.

Meals

A main meal is typically provided daily, often alongside morning and afternoon tea. Residents may dine in a communal dining room or have meals delivered to their apartment, depending on the village’s arrangements.

Personal care

Support is tailored to individual needs and may include assistance with:

• Showering and dressing
• Medication management or supervision
• Wellbeing checks, such as monitoring blood pressure

Support levels can often be increased over time, in some cases up to rest home level care, depending on the operator and available service packages.

In most serviced apartments, electricity and heating are included in the weekly fee. In independent living homes within a retirement village, these costs are usually separate.

Legal structure and ownership

In most New Zealand retirement villages, serviced apartments are occupied under an Occupation Right Agreement (ORA), which grants a licence to occupy rather than ownership of the unit. These agreements are governed by the Retirement Villages Act 2003, its Regulations, and the Code of Practice for Retirement Villages. Most villages are also overseen by an independent Statutory Supervisor.

Under an Occupation Right Agreement, you do not own the property title. Instead, you pay an upfront lump sum to purchase the right to live in the apartment, and a Deferred Management Fee (DMF) typically applies and is deducted from your refund when you leave.

Can you receive higher levels of care?

Some serviced apartments are certified to provide rest home, hospital or dementia level care, while others only offer lower levels of support.

If a resident’s health changes and a Needs Assessment confirms they require a higher level of care, they may be able to remain in the same serviced apartment, depending on the village’s certification and service model.

This varies between operators and even between villages within the same group, so it is important to ask:

• What level of personal care is available within the serviced apartments?
• If needs increase, can a resident stay in the same apartment, or would they need to move to a different room or care home?
• What higher levels of care are available on site or nearby if needed later, such as rest home, hospital or dementia care?

Understanding this upfront helps with long-term planning and avoids surprises if your care needs increase in the future.

Who do Serviced Apartments suit?

A serviced apartment suits someone who wants their own private home but needs extra help with day-to-day tasks.

It is often considered by people who find cooking, cleaning or laundry harder than they used to, or who want the reassurance of support being available if needed. The level of assistance varies by village and by the service package you choose.

Serviced apartments are commonly described as a middle option between fully independent living and moving into a certified care setting. For some residents, the added support can delay the need to move into rest home care, but this depends on the person’s health needs and what the village is able to provide.

Location and accessibility

Serviced apartments are usually positioned close to the heart of the village, near dining rooms, lounges and activity spaces.

In many villages they are also located near, or within, the onsite care facility if one is available, allowing easier access to nurses and support staff when needed.

Serviced Apartment vs. Care Suite: What’s the difference?

In New Zealand retirement villages, serviced apartments and care suites serve different purposes and are regulated differently.

Serviced Apartment

• Private accommodation with built-in daily support
• Includes some meals, housekeeping and personal care, depending on the support package
• Often chosen before rest home level care is required, as a “middle step” between independent living and full residential care.
• Typically occupied under an Occupation Right Agreement with a Licence to Occupy

Care Suite

• Located within a certified care facility and designed for people needing rest home or hospital level care (and sometimes dementia care)
• Requires a Needs Assessment confirming eligibility for rest home, hospital or dementia level care
• Often occupied under an Occupation Right Agreement for the accommodation component, with care funded under the Age‑Related Residential Care (ARRC)
• In some cases, similar accommodation may be offered as a premium room with a daily fee rather than an ORA capital sum.

Some serviced apartments are certified to provide higher levels of care, but arrangements differ between operators, so it is important to confirm this with each village.

What does a serviced apartment cost?

In New Zealand retirement villages, serviced apartment costs usually include:

• An initial Occupation Right Agreement payment (your capital contribution from the apartment)
• The standard village weekly fee
• An additional serviced apartment package fee

The package fee generally covers some meals, housekeeping, tailored personal care, and usually electricity and heating for the apartment. The standard weekly fee (usually the same as what independent residents pay) covers day‑to‑day village operating costs such as rates, insurance, grounds and building maintenance, staff costs, security and upkeep of communal facilities. Inclusions and pricing vary between villages and by package, and all fees and service inclusions must be detailed in the village’s disclosure statement and Occupation Right Agreement.

Are Serviced Apartments subsidised?

In most cases, serviced apartments themselves are not subsidised. Government funding, such as the Residential Care Subsidy, only applies once someone has been formally assessed as needing rest home, hospital or dementia level care, and is receiving that level of care in a certified setting (which may be a care suite or, in some villages, a certified serviced apartment).

Eligibility for the Residential Care Subsidy depends on asset and income thresholds, and applications are made through Work and Income.

Questions to ask your village provider

• What specific services are covered by the weekly fee, and what is covered by the serviced apartment package fee? Make sure you understand which charges apply to all independent residents, and which are extra for assisted living/serviced apartments.
• Can support levels be increased temporarily, for example after an illness or surgery? What does this cost, and how is it arranged?
• If you are living in a serviced apartment and your needs increase to full‑time rest home, hospital or dementia level care, what happens then? Would you be able to stay in the serviced apartment, or would you be required to move to a room within the care facility if the village has one on site?
• If you are moving from an independent home within the same village, how will your Occupation Right Agreement be treated? Will the existing ORA roll over to the serviced apartment, or will it end and a new ORA begin? What are the financial implications of that change?

Frequently asked questions

Is a serviced apartment the same as a rest home?

No. A serviced apartment offers private accommodation with additional support such as meals, housekeeping, and tailored personal care, while you keep your own routine and privacy. A rest home, by contrast, provides ongoing clinical care for people who have been formally assessed as needing a higher level of support and are living in a certified care home.

Can I receive the Residential Care Subsidy in a serviced apartment?

In most cases, serviced apartments are privately funded. The Residential Care Subsidy only applies once a Needs Assessment confirms you require rest home, hospital or dementia level care and you are receiving that care in a certified care setting. If a village is certified to provide that level of care within a serviced apartment, eligibility for a subsidy then depends on your asset and income thresholds, and you must apply through Work and Income.

What happens if my health needs change?

Support in a serviced apartment can often be increased over time, for example by adding more personal care services as your needs grow. If you are later assessed as requiring rest home or hospital level care, you may be able to stay in the same apartment if the village is certified to provide that level of care there; otherwise, the village will usually support a transition to a care suite or room within their care home or another provider.

Can couples stay together if only one person needs support?

Often, yes. In many villages, couples can continue living together in a serviced apartment even if only one partner requires personal care, or live close by with one in the serviced apartment and one in an independent home. The exact arrangement and level of support will depend on the individual’s assessed needs and the services available within the village, so it is important to discuss your specific situation with the village team.

Do I own the serviced apartment?

In most New Zealand retirement villages, you do not own the legal title to the apartment. Instead, you purchase an Occupation Right Agreement (ORA), which gives you the right to live in the apartment under the Retirement Villages Act 2003 and the Code of Practice, and a Deferred Management Fee usually applies when you leave.

Are pets allowed in serviced apartments?

This depends on the village’s policies. Some retirement villages are pet‑friendly for independent villas but have tighter rules for serviced apartments in main buildings, so pets may not always be allowed or may require specific approval. It is best to speak directly with the village team to understand their pet rules.

Is there 24 hour support available?

Almost every serviced apartment will have emergency call bells that are monitored 24 hours a day by onsite or on‑call staff, so help can be requested if you feel unwell or have a fall.

Disclaimer:

This article provides general information about serviced apartment living in New Zealand retirement villages. It is not financial or legal advice. Always review the disclosure statement and seek independent advice before signing an Occupation Right Agreement.