Find Care Operator for Property: How to Secure the Right UK Care Operator

A practical guide for UK landlords, investors and property owners looking to find a suitable care operator for a care home, supported living property or specialist healthcare building

Finding a care operator for property can be an effective strategy for landlords and investors who own a building that is suitable for residential care, supported living or another specialist care use.

However, finding an operator is about more than locating a company willing to occupy the building. The operator needs to match the property's size, location, condition, planning position and intended use, while the proposed commercial arrangement needs to work for both parties.

For property owners, the process can involve identifying suitable operators, preparing the property information, assessing operator requirements, negotiating lease terms and coordinating the property and regulatory considerations required before occupation.

Where a proposed operator intends to provide regulated care in England, the operator may need to register with the Care Quality Commission. CQC states that it is the legal entity carrying out the regulated activity that must register, rather than simply the property or care setting.

What does it mean to find a care operator for a property?

Finding a care operator means identifying an established or emerging care provider that could operate from a property under an appropriate lease, management arrangement, acquisition structure or other commercial agreement.

The property might be:

• An existing care home

• A former care home

• A nursing home

• A dementia care property

• A supported living property

• A specialist supported housing scheme

• A former healthcare building

• A large residential property

• A rehabilitation centre

• A specialist disability property

• A newly developed care facility

The right operator will depend heavily on the property's characteristics and the type of service intended.

Start by defining the property opportunity

Before approaching operators, the owner should prepare a clear property brief.

Useful information can include:

• Property location

• Floor area

• Number of bedrooms or units

• Number of bathrooms

• Existing lawful use

• Planning history

• Current condition

• Accessibility

• Communal facilities

• Kitchen facilities

• Gardens

• Parking

• Fire safety arrangements

• Lift provision

• EPC information

• Previous care use

• Proposed availability date

• Lease requirements

A well-prepared property brief allows operators to establish quickly whether the building could fit their business model.

For example, a former 30-bedroom care home with en-suite rooms, communal lounges, a commercial kitchen and accessible facilities may be more relevant to an established residential care operator than to a provider whose model is based around small supported living properties.

Match the operator to the care property

Different operators have different property requirements.

A care home operator may look for:

• Existing care home use

• Multiple bedrooms

• En-suite facilities

• Communal lounges

• Dining areas

• Commercial kitchen

• Staff areas

• Gardens

• Parking

• Accessibility

A supported living provider may instead prefer:

• Self-contained units

• Smaller shared houses

• Accessible flats

• Communal areas

• Appropriate local amenities

• Properties that can be adapted to individual support needs

A specialist operator may require:

• Therapy rooms

• Secure areas

• Specialist bathrooms

• Hoist provision

• Accessible bedrooms

• Sensory spaces

• Larger communal areas

• Enhanced staff facilities

The operator should therefore be selected around the property rather than simply searching for the largest care company available.

Decide whether you want a lease or another arrangement

Property owners should establish the preferred commercial structure before approaching operators.

Possible arrangements can include:

• Long-term lease

• Standard commercial lease

• Lease to an established care operator

• Management agreement

• Sale and leaseback

• Property sale

• Joint venture

• Development agreement

• Operator-led acquisition

A long-term lease can provide an owner with an occupational structure while allowing the care provider to operate the business.

The lease should clearly establish responsibilities for:

• Rent

• Repairs

• Insurance

• Maintenance

• Structural works

• Compliance-related property works

• Refurbishment

• Alterations

• Service charges

• Assignment

• Subletting

• Dilapidations

Professional legal and property advice should be obtained before agreeing detailed terms.

Look for an operator with the right experience

The operator's experience should be assessed against the property's intended use.

Relevant considerations can include:

• Existing care services

• Number of properties operated

• Experience with the resident group

• Management team

• CQC registration where applicable

• Regulatory history

• Staffing model

• Financial position

• Growth strategy

• Property requirements

• Experience operating leased properties

CQC explains that providers must register before carrying on regulated activities and that the registration process assesses whether the provider can deliver safe, effective, caring, responsive and well-led services.

An owner should therefore avoid assuming that an operator can simply move into a property and immediately begin regulated care.

Consider whether the operator already has CQC registration

For properties in England intended for regulated care, CQC registration is an important part of the operator assessment.

CQC states that carrying on a regulated activity without registration is an offence. Its current guidance also explains that registration is tied to the regulated activity being provided and the legal entity responsible for it.

An established operator may already have relevant experience and registration, but a new location or change in service may still require appropriate regulatory applications or changes.

CQC's guidance specifically addresses situations where an applicant is purchasing or taking over an existing location and requires coordination between the existing and proposed providers where applicable.

For a property owner, this makes it important to understand the operator's proposed service model before agreeing occupation.

Check the planning position

Planning should be considered before marketing a property to care operators.

The owner should establish:

• Existing lawful use

• Previous use

• Planning permissions

• Planning conditions

• Whether the proposed care use is permitted

• Whether a change of use may be required

• Whether extensions are possible

• Whether additional bedrooms or units can be created

• Whether external alterations require consent

A former care home can be attractive to an operator because the property may already have a relevant planning history.

However, the previous use should not be treated as a guarantee that every future care model can operate from the building.

Assess the building's physical condition

Operators will normally need to understand what condition the property is in before committing to a lease.

An owner should be prepared to provide information about:

• Roof

• Damp

• Structural condition

• Heating

• Electrical systems

• Plumbing

• Drainage

• Fire systems

• Lifts

• Bathrooms

• Kitchen

• Windows

• Accessibility

• External areas

A building survey can identify significant defects before negotiations progress.

This can also help establish whether the landlord or operator should fund particular works before occupation.

Make the property attractive to suitable operators

A property that is difficult to understand or poorly presented can reduce operator interest.

Owners can improve the opportunity by preparing:

• Floor plans

• Property photographs

• Property specification

• Planning information

• EPC

• Building survey

• Fire safety information

• Lease information

• Existing CQC information where relevant

• Refurbishment information

• Proposed commercial terms

For a former care property, details such as bedroom sizes, en-suite provision, communal areas and accessibility can be particularly useful.

Consider refurbishment before finding an operator

Some properties may attract a wider pool of operators if essential works are completed before marketing.

Potential improvements include:

• Bedroom refurbishment

• En-suite upgrades

• Kitchen refurbishment

• Communal area improvements

• Accessibility works

• Heating upgrades

• Fire safety improvements

• Flooring

• Decoration

• External works

• Garden improvements

Alternatively, an owner may market the property in its existing condition and allow the incoming operator to undertake refurbishment.

The right approach will depend on the lease structure, available capital, operator requirements and expected return.

Find operators for specialist care property

Specialist properties may require a more targeted operator search.

Examples include properties suitable for:

• Dementia care

• Nursing care

• Learning disability services

• Physical disability care

• Mental health services

• Rehabilitation

• Supported living

• Specialist supported accommodation

• Children's residential care

The property should be matched with operators that have experience in the relevant service.

For example, a building designed around accessible accommodation and therapy areas may be more suitable for a specialist disability operator than a conventional elderly care provider.

Consider the operator's financial position

For a landlord, the financial strength of the operator is an important consideration.

Depending on the transaction, an owner may review:

• Company accounts

• Trading history

• Existing property portfolio

• Rent payment history

• Funding arrangements

• Parent company support

• Guarantees

• Deposits

• Existing liabilities

• Proposed business plan

A strong property may still create problems if the operator cannot support the agreed rent and property expenditure.

The commercial terms should therefore be assessed alongside the operator's ability to perform under the proposed agreement.

Find a care operator for a vacant care home

A vacant care home can be marketed directly to operators looking for expansion opportunities.

The owner should establish:

• Why the previous operator left

• Whether the property is still suitable

• Current planning position

• Condition of the building

• Required refurbishment

• Existing equipment

• Number of bedrooms

• Previous occupancy

• Local demand

• Potential alternative uses

Vacant specialist property can deteriorate quickly if it is not inspected and maintained.

At the same time, vacancy can provide an opportunity to refurbish the building before an operator takes occupation.

Find a care operator for a development

A developer does not necessarily need to wait until a care property is fully completed before approaching operators.

An operator can potentially be involved during the development process to provide input on:

• Bedroom layouts

• Communal areas

• Accessibility

• Kitchen design

• Staff areas

• Storage

• Resident circulation

• Outdoor space

• Service requirements

Early operator involvement can help ensure the completed building reflects the requirements of its intended occupier.

Where planning or building work is involved, the proposed development should still be assessed against the relevant planning and building control requirements.

London care operator property requirements

London has a wide range of care property opportunities, from converted residential buildings to purpose-built facilities.

Owners seeking an operator may need to consider:

• Borough

• Transport links

• Local amenities

• Parking

• Property size

• Planning constraints

• Local care demand

• Building condition

• Development potential

• Refurbishment costs

A care operator may be interested in a property because of its location, while another may reject the same building because of parking, accessibility or layout.

This is why operator matching should be based on the specific property rather than general market assumptions.

Work with a property specialist to find a care operator

Finding a suitable operator can involve identifying potential occupiers, approaching them with a detailed property brief and managing discussions around the commercial and physical requirements.

A specialist property consultancy can help with:

• Operator identification

• Property marketing

• Operator introductions

• Acquisition advice

• Lease negotiations

• Property assessment

• Planning coordination

• Refurbishment

• Contractor coordination

• Investment analysis

• Property management

For owners of specialist care property, this approach can be particularly useful where the property requires a specialist occupier rather than a conventional residential or commercial tenant.

Working with Fraser Bond

Fraser Bond supports landlords, investors, developers and care property owners looking to identify suitable operators for specialist property across London and the UK.

Support can include:

• Care operator sourcing

• Property marketing

• Care property acquisition

• Lease strategy

• Property assessment

• Planning coordination

• Refurbishment planning

• Building works

• Contractor coordination

• Investment assessment

• Property management

Whether you own an existing care home, former care property, supported living building or specialist healthcare facility, Fraser Bond can help develop a property strategy around finding an appropriate operator.

Finding the right care operator for your property

Finding a care operator for property should begin with understanding the building, its planning position, physical condition, location and intended care model.

The operator should then be assessed for relevant experience, financial capacity, property requirements and regulatory position.

For owners, the objective is not simply to fill an empty building. It is to establish a sustainable relationship between the property, the operator and the intended care service.

Fraser Bond can support property owners and investors across London and the UK with operator sourcing, specialist property acquisition, leasing, refurbishment, property management and development support.