What Must a Florida ALF Contract Include?

A resident contract is one of the most important documents inside a Florida assisted living facility. It is not just a payment agreement. It tells the resident, the family, and the facility what services are being provided, what charges apply, and what rights and responsibilities are attached to the residency.

Primary legal source: Florida Statute 429.24. Getting this document right is one of the most practical parts of learning how to open an ALF in Florida, since it directly shapes how disputes get resolved later.

Every Resident Must Be Covered by a Contract

Florida Statute 429.24 requires the presence of each resident in a facility to be covered by a contract. The contract must be executed at the time of admission or before admission between the licensee and the resident, designee, or legal representative.

Each party must receive a duplicate original of the contract, and the licensee must keep the contract on file in the facility. The licensee may not destroy or dispose of the contract until 5 years after it expires.

This means the resident contract should be prepared before accepting residents, not after the facility is already operating.

Required Contract Terms Under Florida Law

The ALF contract must contain express provisions that set out the core terms of the resident's stay. At a minimum, the contract must include:

• The services and accommodations the facility will provide
• The rates or charges
• A provision requiring at least 30 days' written notice of a rate increase
• The rights, duties, and obligations of the residents, beyond the resident rights already listed in Florida Statute 429.28
• Any other matters the parties consider appropriate

The rights and obligations referenced here connect directly to what is covered in our post on Florida assisted living resident rights.

Rate Increases and New Services Must Be Handled Correctly

The contract must include at least 30 days' written notice before a rate increase. The statute also clarifies that a new service or accommodation added to a resident contract, for which the resident was not previously charged, does not require the 30-day written notice of a rate increase.

This is a detail owners should not overlook. If a facility changes pricing, adds separately charged services, or updates contract terms, documentation must be clear. A vague or poorly written contract can lead to disputes, complaints, and regulatory concerns.

Advance Rent and Security Deposits Must Be Protected

When a resident deposits or advances money as security or advance rent for more than the next immediate rental period, those funds must be deposited in a Florida banking institution, kept separate from facility funds and property, and used only for the resident's account.

Within 30 days of receiving advance rent or a security deposit, the licensee must notify the resident in writing about how the money is being held and provide the name and address of the depository.

This is an area where business operations and compliance overlap. Owners need clean systems for resident funds before they admit the first resident.

Refund Policy Must Be Included

The resident contract must include a refund policy for transfer, discharge, or death. The refund policy must provide a prorated refund based on the daily rate for any unused portion of payment beyond the termination date, after allowable charges are paid. For the full breakdown of how this works, see our post on the ALF refund policy in Florida.

Because refund language is so important, future ALF owners should review contract templates carefully as part of the initial license and application review.

Religious Affiliation Must Be Disclosed

The contract must state whether the facility is affiliated with a religious organization. If it is, the contract must identify the organization and its general responsibility to the facility.

This does not mean a faith-based facility cannot operate. It means the relationship must be disclosed in the resident contract, and residents must still be protected from imposed religious beliefs or practices under resident rights law.

If you are serious about opening an Assisted Living Facility in Florida, do not start with guesswork. Get access to our free resources for future ALF owners so you can begin learning the licensing steps, compliance expectations, and common mistakes to avoid.

Your Contract Is the First Thing Families Will Scrutinize

A poorly written resident contract is one of the easiest things for a family to point to when something goes wrong. Getting the language right before your first admission protects the facility just as much as it protects the resident.

If you want a second set of eyes on your contract language, schedule time with Carline.