When my Dad checked into the VA hospital for subacute rehab, he was recovering from a flu and an earlier bout of sepsis, both of which increased his delusions to the point where several times he got angry enough to scare people. He's been staying the locked facility for several weeks without showing any more aggression, and the people he is sharing space with are not sociable, most never see reality, and he is very alone there and out of place. We want to place him in a retirement home that is closer to home, and has adequate 24-hr care, but not in an environment where all fellow patients are delusional and dangerous. Lately my Dad has been calm and easily re-directed. The doctor notes will reflect his delusional incidents and they will consider him a risk, but for how long? We feel he is improving every day.
To me, I would be more concerned with the consequences of the risks for right now. You say you want to place him in a retirement home...I would investigate and thoroughly consider if that is a proper fit for him, keeping in mind the progression of dementia. Can they adequately monitor him and provide him with care as his condition declines? Do they have a Memory Care unit on premises that he could be relocated to easily if that were needed?
I'd discuss all of this and his prognosis with his doctors. I realize your goal is for him to be as happy as possible.