Care Company Tenant - How Landlords Can Find the Right Care Operator for Their Property

Finding a care company tenant can provide a long-term commercial opportunity for landlords with properties suitable for care, supported living, healthcare or specialist accommodation. However, care companies often have specific requirements around property layout, accessibility, planning, compliance and operational suitability.

For landlords in London and across the UK, finding the right care company involves more than securing a tenant that can pay rent. The operator should be suitable for the building, its proposed use and the commercial terms of the lease.

Fraser Bond can help landlords assess their property, identify suitable care operators, prepare buildings for occupation and manage the wider property requirements involved in a care letting.

What Is a Care Company Tenant?

A care company tenant is a business or organisation that leases a property to provide care or related services.

Depending on its business model, a care company may operate:

• Residential care services

• Nursing care

• Supported living

• Specialist care

• Elderly care

• Learning disability services

• Autism support

• Mental health services

• Domiciliary care

• Rehabilitation services

• Community healthcare services

The exact requirements depend on the service being provided and whether the activity is regulated.

In England, a company carrying out regulated health or adult social care activities may need to register with the Care Quality Commission. CQC states that the legal entity carrying out the regulated activity is responsible for registration, rather than simply the property itself.

What Properties Do Care Companies Look For?

Care companies can consider a range of property types depending on their intended service.

Potentially suitable properties include:

• Large detached houses

• Former care homes

• Existing healthcare premises

• Former residential facilities

• Properties with several bedrooms

• Former hotels

• Buildings with communal areas

• Commercial buildings with conversion potential

The operator may assess the number and size of bedrooms, bathrooms, communal rooms, kitchen facilities, outdoor space, parking, accessibility and general building condition.

CQC also considers factors including the size, layout and design of premises when assessing applications from care providers.

How to Find a Care Company Tenant

Landlords looking for a care company tenant should prepare the property information before approaching potential operators.

A useful property profile can include:

• Location

• Floor area

• Number of bedrooms

• Number of bathrooms

• Existing use

• Planning position

• Parking arrangements

• Accessibility

• Outdoor space

• Building condition

• Refurbishment potential

• Availability

• Proposed lease terms

This makes it easier for care companies to decide whether the property matches their operational requirements.

Fraser Bond can help landlords position a property for targeted care operator enquiries rather than relying solely on general commercial property advertising.

What Care Companies Look For in a Property

A care operator may assess a property differently from an ordinary commercial tenant.

Important considerations can include:

• Accessibility

• Bedroom configuration

• Communal living space

• Bathroom facilities

• Kitchen facilities

• Staff areas

• Storage

• Fire safety

• Heating and ventilation

• Security

• Parking

• Outdoor areas

• Transport connections

• Proximity to local services

The operator may also need to establish whether the property can be adapted to meet its particular care model.

For example, a provider supporting people with learning disabilities may have different requirements from an operator running an elderly care service.

Planning Before Leasing to a Care Company

The property's planning position should be investigated before the landlord commits to a care company tenant.

A building currently used as a private residence, office, hotel or another commercial property may not automatically have planning permission for the proposed care use.

The operator may also want to make alterations to the building. Depending on the proposed works, planning permission, building regulations approval or other consents may be required.

Landlords should therefore establish the property's position early and avoid assuming that a proposed care use will automatically be permitted.

Understanding CQC Registration

Not every care-related business has identical registration requirements.

CQC's current guidance explains that providers may need to register depending on the regulated activities they carry out. The scope can include different types of health and adult social care services, and a provider may need to register for more than one regulated activity.

For a landlord, the important point is to understand what the prospective care company intends to provide from the property.

CQC also requires providers to identify the locations from which regulated activities are carried out or managed. A care home can be a CQC location, while premises used to manage homecare or supported living services can also constitute locations under CQC rules.

Care Home or Supported Living Use?

The proposed arrangement should be clearly established before agreeing the lease.

CQC distinguishes between accommodation provided together with nursing or personal care as a single package and arrangements where accommodation and personal care are provided separately.

Where accommodation and personal care are provided together as one package, the regulated activity relating to accommodation for people requiring nursing or personal care may apply. Where residents can choose a different care provider separately from their accommodation, the arrangement may instead fall within supported living or extra care housing.

This distinction can affect the operator's regulatory arrangements and the way the property is used.

Check the Care Company's Background

Finding a care company tenant should include appropriate due diligence.

Landlords can consider:

• Company structure

• Financial position

• Trading history

• Existing care locations

• Management experience

• Regulatory status where applicable

• Proposed service

• Business plan

• Refurbishment requirements

• Insurance

• Lease proposal

• Repair responsibilities

For an established operator, publicly available CQC information can provide useful background about its registered activities and locations.

However, regulatory registration should form only part of the landlord's wider commercial and legal due diligence.

Preparing a Property for a Care Company

Some properties may be ready for occupation with relatively limited work, while others may require substantial refurbishment.

Potential improvements can include:

• Bathroom upgrades

• Accessibility improvements

• Fire safety works

• Electrical upgrades

• Plumbing

• Heating and ventilation

• Kitchen refurbishment

• Internal reconfiguration

• Flooring

• Decoration

• Door and access improvements

• External maintenance

CQC expects premises used for regulated care activities to be suitable for their intended purpose and appropriately maintained.

Fraser Bond can assist with refurbishment, building works, contractor coordination and maintenance where a property needs to be prepared for a care operator.

Who Pays for the Property Works?

The responsibility for refurbishment should be agreed between the landlord and care company.

The landlord may complete essential works before the lease begins. Alternatively, the care company may fund its own specialist fit-out, particularly where the operator has specific operational requirements.

Another option is to divide the responsibilities, with the landlord handling structural or essential works while the operator pays for specialist alterations.

The lease should clearly state who is responsible for costs, approvals, maintenance and reinstatement.

Negotiating the Lease With a Care Company

A care company may want a longer lease because it could need to invest significantly in adapting the property.

Important commercial terms can include:

• Lease length

• Rent

• Rent reviews

• Break clauses

• Repairs

• Maintenance

• Insurance

• Service charges

• Alterations

• Planning responsibilities

• Regulatory responsibilities

• Refurbishment

• Assignment

• Subletting

• Reinstatement

The landlord should consider both the immediate rental terms and the long-term implications of the proposed care use.

Appropriate legal advice should be obtained before the final lease is completed.

Example: Finding a Care Company Tenant in London

Imagine a landlord owns a large eight-bedroom property in North London with communal areas, a garden and off-street parking.

The property is too large for a typical residential tenancy but has characteristics that could interest a care company.

The landlord could first assess the building's planning position, condition, accessibility and potential refurbishment requirements.

Fraser Bond could then help prepare the property for targeted marketing and approach appropriate care operators. Once a suitable company is identified, the landlord and operator can negotiate the lease and agree responsibility for any required works.

Create a Property Information Pack

A professional information pack can help attract serious care companies and reduce unsuitable enquiries.

It can include:

• Floor plans

• Property photographs

• Floor area

• Bedroom and bathroom schedule

• Existing planning information

• Parking details

• Accessibility information

• Outdoor space

• Building condition

• Refurbishment opportunities

• Proposed lease terms

• Availability date

Providing this information early allows prospective operators to assess the property before committing time to detailed discussions.

Why Work With Fraser Bond?

Finding a care company tenant can involve property assessment, operator sourcing, refurbishment, construction coordination, commercial negotiations and ongoing property management.

Fraser Bond provides services covering lettings, property management, refurbishment, construction coordination, maintenance and investment advice.

This allows landlords to approach care property opportunities as part of a complete property strategy rather than simply listing the building for rent.

Whether you own a former care home, large residential property, healthcare building or another property with care potential, Fraser Bond can help you assess the opportunity and pursue a suitable care company tenant.

Find the Right Care Company Tenant

A successful care property letting depends on matching the right operator with the right building.

The property's location, layout, planning position, condition, proposed use, regulatory considerations and lease structure should all be considered before an agreement is finalised.

If you want to find a care company tenant for your property in London or elsewhere in the UK, Fraser Bond can help with property assessment, operator sourcing, refurbishment, lease negotiations and ongoing property support.