Care Provider Looking for Landlord - Finding Suitable Premises for Care Services

Explore what care providers looking for landlords need from property owners, including suitable premises, lease requirements, planning, CQC considerations, accessibility, refurbishment and long-term property partnerships.

A care provider looking for a landlord is often searching for more than a standard commercial tenancy.

The provider may need a property that can support residential care, supported living, specialist care, domiciliary care operations or another regulated service. The landlord therefore needs to understand both the property's physical suitability and the requirements of the care provider.

For landlords, this can create opportunities to lease suitable residential, healthcare or commercial premises to established care organisations.

For care providers, finding the right landlord can be just as important as finding the right property. The lease needs to provide sufficient security for the provider to establish and operate its service while clearly defining responsibilities for repairs, alterations, compliance and maintenance.

In England, providers carrying out regulated activities may need to register with the Care Quality Commission. CQC requires providers to have suitable premises and, for relevant services, evidence that they have legal permission to use the property.

What Does a Care Provider Look for in a Landlord?

A care provider may look for a landlord who understands the operational requirements of specialist care property.

Important considerations can include:

• Willingness to grant a suitable long-term lease

• Permission for appropriate alterations

• Clear responsibility for repairs and maintenance

• Understanding of the proposed care use

• Cooperation with planning requirements

• Cooperation with CQC-related property documentation

• Reasonable access for contractors

• Clear insurance arrangements

• Flexibility around refurbishment

• Suitable lease terms

• Reliable communication

A landlord does not necessarily need previous experience in the care sector, but both parties should understand the proposed use before entering into an agreement.

What Property Might a Care Provider Need?

The required property depends on the provider's service model.

Potential requirements include:

• Existing care homes

• Former care homes

• Nursing homes

• Large residential houses

• Specialist care accommodation

• Supported living properties

• Former healthcare buildings

• Purpose-built care facilities

• Properties requiring refurbishment

• Offices for domiciliary care operations

A residential care provider may require bedrooms, bathrooms, communal areas and outdoor space.

A domiciliary care provider may instead require an office or operational base from which staff and services are managed.

CQC's location guidance distinguishes between these different service models, so the provider should establish exactly what type of premises it needs before approaching landlords.

Why Care Providers May Prefer a Long-Term Landlord Relationship

Care properties can require substantial investment.

A provider taking a property may need to spend money on:

• Refurbishment

• Accessibility

• Bathrooms

• Kitchens

• Fire safety

• Flooring

• Electrical work

• Heating

• Internal reconfiguration

• Security

• Outdoor areas

A longer-term lease can give the provider greater confidence that it will be able to recover the benefit of those improvements through continued occupation.

The precise lease structure should be negotiated around the needs of both parties and reviewed by appropriate legal advisers.

Property Requirements for Residential Care Providers

A residential care provider may look for premises with:

• Multiple bedrooms

• Suitable bathrooms

• Communal lounges

• Dining areas

• Kitchen facilities

• Staff areas

• Storage

• Laundry facilities

• Outdoor space

• Parking

• Accessible entrances

• Suitable circulation routes

The building needs to work for the intended residents and the care model.

CQC considers the size, layout and design of premises when assessing providers, while its fundamental standards require premises used for care to be suitable and properly maintained.

Property Requirements for Supported Living Providers

Supported living providers can have a different property requirement from residential care operators.

Depending on the model, the provider may be looking for:

• Houses

• Flats

• Bungalows

• Small residential properties

• Multiple properties in one area

• Accessible accommodation

• Properties suitable for individual tenancies

• A management or office base

CQC's location rules are important here because individual supported living homes are not generally treated in the same way as care-home locations where residents receive accommodation and care under a combined arrangement.

The provider should therefore establish the legal and regulatory structure before agreeing the property arrangement.

What Landlords Should Know About CQC

A landlord should not assume that letting a property to a care provider means the property itself becomes "CQC registered".

CQC registration relates to the provider and its regulated activities.

The provider must satisfy CQC's requirements for the proposed service and location.

CQC states that providers must have suitable locations and staff ready before applying, and it may refuse an application where premises are unsuitable.

This makes it important for the landlord and care provider to establish the intended use before the lease is completed.

Evidence of Legal Occupancy

For relevant services, the care provider needs to demonstrate that it has legal permission to use the premises.

CQC's current guidance specifically identifies evidence of legal occupancy as a document required for care homes, home-care agencies and supported living services. The evidence needs to show that the provider has legal permission to operate its service from the location.

A properly drafted lease can therefore be an important part of the provider's regulatory preparation.

Planning the Proposed Care Use

Planning should be investigated before the landlord and provider commit to the arrangement.

The parties should establish:

• Existing planning use

• Previous use

• Planning history

• Proposed care use

• Whether a change of use is required

• Whether alterations require permission

• Any restrictions on the property

• Local authority requirements

For example, residential care homes and nursing homes are generally associated with Use Class C2, but the precise planning position depends on the proposed use and property.

Planning permission and CQC registration are separate matters.

A landlord should therefore avoid promising that a property is automatically suitable for a care service simply because it has previously been used for care.

What Makes a Property Attractive to a Care Provider?

A care provider may consider several factors when assessing a landlord's property.

These can include:

• Location

• Building size

• Number of bedrooms

• Bathroom provision

• Accessibility

• Communal space

• Outdoor space

• Parking

• Building condition

• Planning position

• Refurbishment potential

• Lease flexibility

• Local demand

• Proximity to healthcare services

• Public transport

The property's condition should be assessed alongside the cost of bringing it into operational use.

Accessibility and Adaptation Rights

Care providers may need to modify a property to meet the needs of residents or service users.

Potential works can include:

• Ramps

• Lifts

• Accessible bathrooms

• Grab rails

• Wider doorways

• Adapted bedrooms

• Handrails

• Improved lighting

• Accessible kitchens

• Mobility equipment storage

The lease should clearly establish whether such works are permitted and who is responsible for obtaining necessary permissions.

Landlords may also want reinstatement provisions if the property is to be returned to its original condition at the end of the tenancy.

Fire Safety and Property Responsibilities

Fire safety should be considered before a care provider occupies the property.

The parties should establish responsibility for:

• Fire risk assessments

• Fire alarms

• Fire doors

• Emergency lighting

• Fire safety equipment

• Maintenance

• Testing

• Repairs

• Evacuation arrangements

• Building alterations

CQC requires providers to ensure that premises used for regulated care are safe for their intended purpose.

The lease should therefore make responsibilities clear rather than leaving important safety obligations uncertain.

Refurbishment and Landlord Cooperation

Some care providers may be specifically looking for landlords willing to offer properties requiring refurbishment.

A refurbishment project could involve:

• Bedroom upgrades

• Bathroom adaptations

• Kitchen refurbishment

• Electrical upgrades

• Heating improvements

• Fire safety works

• Internal reconfiguration

• Accessibility improvements

• Flooring

• Decoration

• Garden improvements

The landlord and provider should agree in advance who will fund the work, who will manage it and who will own any permanent improvements.

Fraser Bond can support refurbishment planning, building works, contractor coordination, repairs and maintenance where required.

Lease Terms Care Providers May Need to Discuss

Before agreeing to a property, a care provider should review the proposed lease carefully.

Important issues can include:

• Lease length

• Rent

• Rent review provisions

• Break clauses

• Permitted use

• Assignment

• Subletting

• Alterations

• Refurbishment

• Repairs

• Maintenance

• Insurance

• Service charges

• Compliance responsibilities

• Reinstatement

• Renewal options

For a care operation that requires substantial investment in the building, lease security can be particularly important.

Both parties should obtain appropriate legal advice before signing.

What Landlords Should Prepare Before Marketing to Care Providers

A landlord with a potentially suitable property should prepare a clear information pack.

This could include:

• Property address

• Floor area

• Floor plans

• Number of bedrooms

• Bathroom facilities

• Communal areas

• Office space

• Parking

• Garden

• Accessibility features

• Current planning use

• Planning history

• Previous care use

• EPC

• Building condition

• Fire safety information

• Recent refurbishment

• Asking rent

• Lease terms

• Availability

The more accurate the information, the easier it is for a care provider to determine whether the property deserves further investigation.

A Practical Property Brief for a Care Provider Seeking a Landlord

A care provider could approach landlords with a brief such as:

Requirement: Property and landlord for a care service

Preferred property: Existing care home, former care property, large residential property, specialist accommodation or suitable commercial premises

Bedrooms: Multiple bedrooms where residential accommodation is required

Communal areas: Lounge, dining and activity areas where appropriate

Facilities: Suitable bathrooms, kitchen, storage and staff facilities

Accessibility: Suitable for the intended residents or service users

Location: Accessible area with healthcare, transport and local amenities nearby

Planning: Existing suitable use or realistic planning route

Condition: Ready-to-use or suitable for refurbishment

Outdoor space: Preferred where relevant

Parking: Required or desirable depending on the service

Tenure: Long-term lease preferred

Landlord: Open to appropriate care use, alterations and agreed refurbishment

This gives property owners and agents a clear picture of what the provider is seeking.

What Care Providers Should Ask a Potential Landlord

Before proceeding, a care provider should ask:

• Does the landlord permit the proposed care use?

• Is the existing planning position suitable?

• Will alterations be permitted?

• Who will pay for refurbishment?

• Who is responsible for repairs?

• What is the proposed lease length?

• Are there rent review provisions?

• Is assignment permitted?

• What happens when the lease ends?

• Can contractors access the property?

• Can the provider obtain the evidence of legal occupancy it needs?

• Are there existing restrictions affecting the property?

• What condition is the building in?

• Are there outstanding safety issues?

These questions can identify potential problems before the provider commits substantial money to the premises.

Why Landlords Should Understand the Care Operator's Business Plan

A landlord considering a care provider should understand how the property will be used.

The operator may need to explain:

• Type of care

• Intended residents

• Proposed capacity

• Staffing model

• Planned refurbishment

• Expected opening date

• Regulatory requirements

• Lease requirements

• Long-term plans

This can help both parties determine whether the property and proposed tenancy are compatible.

For regulated services, CQC also expects applicants to provide supporting information such as business plans and financial forecasts for relevant services.

Buying Instead of Leasing

Although the focus may be on finding a landlord, some care providers may ultimately decide that purchasing premises is more appropriate.

This can be considered where the provider wants greater control over:

• Building alterations

• Long-term occupation

• Refurbishment

• Maintenance

• Property strategy

• Future development

The decision between leasing and purchasing depends on the provider's capital, operating model and long-term property requirements.

Finding Care-Sector Landlords Across the UK

Care providers may search for landlords and premises in locations including:

• London

• Birmingham

• Manchester

• Liverpool

• Leeds

• Bristol

• Nottingham

• Sheffield

• Leicester

• Newcastle

• Southampton

• Other towns and cities across England and the wider UK

The appropriate location depends on local demand, staffing, accessibility and the provider's intended service.

How Fraser Bond Can Help Care Providers Find Landlords

Fraser Bond works with property owners, landlords, investors, developers and care operators across a range of specialist property requirements.

For care providers looking for landlords and suitable premises, Fraser Bond can assist with:

• Property sourcing

• Landlord introductions

• Property acquisition

• Property lettings

• Lease negotiations support

• Investment advisory

• Development consultancy

• Refurbishment planning

• Building works

• Contractor coordination

• Property repairs

• Maintenance

• Compliance support

• Property management

For landlords, Fraser Bond can help identify and market properties that may be suitable for care-sector occupiers.

The aim is to establish a practical match between the provider's requirements and the property's physical, planning and commercial characteristics.

Specialist legal, planning and regulatory advice should be obtained where required.

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