Care Provider Tenant Wanted: Finding the Right UK Care Provider Tenant

A practical guide for landlords, investors and property owners looking for a suitable care provider tenant for specialist property across London and the UK

A care provider tenant wanted requirement usually arises when a landlord or investor has a property suitable for care, supported living or another specialist service and is looking for an experienced operator to occupy the building.

Finding the right tenant involves more than securing a company willing to pay rent. The care provider needs to be suitable for the property's size, location, condition, planning position and intended use, while the proposed lease needs to provide a workable arrangement for both landlord and operator.

The property may be an existing care home, former care home, supported living property, specialist housing scheme, healthcare building or large residential property suitable for conversion.

In England, a provider carrying on a regulated activity generally needs to register with the Care Quality Commission. CQC states that the legal entity carrying out the regulated activity must register, rather than the property itself.

What does "care provider tenant wanted" mean?

A care provider tenant wanted property is a building where the owner is actively seeking a care organisation to occupy and operate from the premises.

The property could be suitable for:

• Residential care

• Nursing care

• Dementia care

• Specialist adult care

• Learning disability services

• Physical disability services

• Mental health services

• Supported living

• Supported accommodation

• Rehabilitation

• Specialist supported housing

The commercial arrangement could involve:

• A long-term lease

• Commercial lease

• Management arrangement

• Lease with refurbishment obligations

• Sale and leaseback

• Joint venture

• Another agreed occupational structure

The appropriate arrangement will depend on the property, landlord objectives and operator requirements.

Prepare the property brief before looking for a tenant

Potential care providers will want to understand the property before committing time to a viewing.

A useful property brief should include:

• Location

• Floor area

• Number of bedrooms or units

• Number of bathrooms

• En-suite provision

• Communal areas

• Kitchen facilities

• Staff facilities

• Gardens

• Parking

• Accessibility

• Lift provision

• Fire safety systems

• Existing lawful use

• Planning history

• Previous care use

• Current condition

• EPC

• Availability date

• Proposed lease terms

For a specialist property, details such as bedroom sizes, accessibility, communal facilities and previous use can help an operator determine whether the building fits its service model.

Match the care provider to the property

Not every care provider will be suitable for every building.

A provider specialising in elderly residential care may have different requirements from one operating supported living services for adults with learning disabilities.

Potential specialisms include:

• Elderly residential care

• Nursing care

• Dementia care

• Learning disability care

• Physical disability care

• Mental health support

• Complex care

• Rehabilitation

• Supported living

• Specialist accommodation

The property's existing layout and facilities should therefore influence which operators are approached.

A former 30-bedroom care home with communal lounges, a commercial kitchen and accessible bedrooms will have a different operator market from a four-bedroom supported living house.

Find an experienced care provider tenant

Landlords should assess a potential tenant's operating experience before agreeing a long-term lease.

Areas to review can include:

• Existing care services

• Number of properties operated

• Number of residents supported

• Relevant specialist experience

• Management structure

• Registered managers

• Staffing model

• Regulatory experience

• Existing leased properties

• Expansion plans

• Financial position

An operator with experience managing properties similar to the landlord's building may understand the practical requirements of the premises more effectively.

CQC's provider registration process assesses whether applicants can provide services that are safe, effective, caring, responsive and well-led.

Check the provider's CQC position

Where the proposed service involves regulated activities in England, the prospective tenant's CQC position should be established as part of the landlord's due diligence.

CQC states that carrying on a regulated activity without registration is an offence and that registration relates to the provider responsible for carrying out the regulated activity.

Landlords should establish:

• Whether the provider is already registered

• Which regulated activities it provides

• Whether the proposed service matches its existing experience

• Whether the proposed premises need to be included in its registration

• Whether registration changes may be required

• Whether a new application is necessary

CQC's current location guidance states that a care home where people live and receive care or treatment is a location for registration purposes. It also states that adding or removing a location can require an application to vary registration conditions.

Previous registration associated with a building should therefore not be assumed to transfer automatically to a new tenant.

Check the planning position

Planning due diligence should take place before agreeing a lease.

The landlord should establish:

• Current lawful use

• Previous use

• Existing planning permissions

• Planning conditions

• Number of approved bedrooms or units

• Restrictions on use

• Potential for extensions

• Potential for additional accommodation

• Whether refurbishment requires planning permission

• Whether the proposed tenant's service model is compatible with the property

A former care property may have an established history of specialist use, but the previous use should not be treated as automatic permission for every future care model.

Assess the property's condition

A care provider tenant will usually want to understand the condition of the building before entering into a long-term arrangement.

The landlord should consider arranging or providing information about:

• Roof condition

• Damp

• Structural condition

• Heating

• Electrical systems

• Plumbing

• Drainage

• Fire safety systems

• Lifts

• Bathrooms

• Kitchen

• Windows

• Accessibility

• External areas

A building survey can help identify significant defects and clarify which works may need to be completed before occupation.

It can also help landlords negotiate responsibility for repairs and capital works.

Decide whether refurbishment is needed

Some properties may require refurbishment before attracting a suitable care provider tenant.

Potential works include:

• Bedroom refurbishment

• Bathroom upgrades

• Kitchen improvements

• Communal area refurbishment

• Flooring

• Decoration

• Heating upgrades

• Electrical works

• Accessibility improvements

• Fire safety works

• Roof repairs

• Window replacement

• External works

The landlord may choose to undertake the work before marketing or negotiate an arrangement where the incoming tenant contributes to or undertakes some of the works.

The best approach depends on the property's condition, available capital and proposed lease structure.

Care provider tenant wanted for a former care home

A former care home can be particularly relevant to care providers looking for expansion opportunities.

Before approaching operators, the landlord should understand:

• Previous care model

• Number of bedrooms

• Previous occupancy

• Reason the property became vacant

• Length of vacancy

• Current condition

• Planning position

• Existing equipment

• Accessibility

• Refurbishment requirements

• Local market conditions

If the property has been vacant for some time, regular inspections should continue while the operator search is underway.

Care provider tenant wanted for supported living property

Supported living properties can require a different tenant search from conventional care homes.

The building may be:

• A shared residential property

• A group of self-contained flats

• A specialist apartment scheme

• An accessible house

• A converted building

• Purpose-built supported accommodation

The landlord should understand whether the provider requires communal space, staff facilities, accessible bedrooms or other specialist features.

CQC's current location guidance distinguishes supported living and other services where regulated activity is organised or managed from premises from care homes where people live and receive care at the same location.

This distinction can be relevant when assessing both the property and the proposed operator's regulatory arrangements.

Review the tenant's financial position

A care provider lease can represent a significant long-term commitment, so tenant due diligence should include financial considerations.

Depending on the proposed transaction, a landlord may review:

• Company accounts

• Trading history

• Existing property portfolio

• Rent payment history

• Funding arrangements

• Parent company support

• Guarantees

• Deposits

• Existing liabilities

• Business plan

• Proposed investment in the property

A financially sustainable tenant can be important to the long-term performance of a specialist property investment.

Professional legal and financial advice should be obtained before finalising commercial terms.

Agree the care property lease structure

Once a suitable provider has been identified, the landlord and tenant need to establish the responsibilities attached to the property.

Lease terms may address:

• Rent

• Rent reviews

• Lease length

• Repairs

• Insurance

• Structural works

• Routine maintenance

• Capital expenditure

• Refurbishment

• Alterations

• Service charges

• Assignment

• Subletting

• Dilapidations

• Compliance-related property works

The responsibilities should be clear from the beginning.

For example, a landlord may retain responsibility for major structural works while the tenant handles day-to-day maintenance. Another arrangement may allocate a wider repairing obligation to the operator.

The appropriate structure depends on the property and negotiated lease terms.

Find tenants for specialist care property

Specialist properties should be marketed to providers with relevant experience.

Potential tenant profiles include:

• Care home operators

• Nursing home operators

• Dementia care providers

• Supported living providers

• Specialist disability providers

• Mental health providers

• Rehabilitation operators

• Specialist supported housing providers

Matching the property with the correct provider can reduce the risk of attracting unsuitable enquiries and make negotiations more efficient.

Make the property attractive to care providers

A clear and professional property presentation can improve the quality of tenant enquiries.

Useful information can include:

• Accurate floor plans

• Professional photographs

• Accommodation schedule

• Planning information

• EPC

• Building survey

• Fire safety information

• Accessibility details

• Previous care use

• Refurbishment history

• Lease terms

• Availability

• Proposed rent

For specialist care property, the operator needs enough information to assess both the accommodation and the operational potential.

Consider off-market care provider tenants

Some landlords prefer to find a tenant without publicly advertising a specialist property.

An off-market approach can involve:

• Identifying suitable operators

• Confidential introductions

• Direct operator outreach

• Specialist property networks

• Care sector contacts

• Targeted marketing

This can be useful where the property is vacant, the owner wants discretion or the opportunity is particularly specialised.

Care provider tenants in London

London has a varied market for specialist care property, including converted residential buildings, purpose-built care homes, supported living schemes and former healthcare premises.

Location considerations can include:

• Borough

• Transport links

• Local amenities

• Parking

• Staff accessibility

• Healthcare facilities

• Property size

• Planning constraints

• Local demand

• Development potential

An operator may have specific borough or catchment requirements, so a targeted search is generally more useful than broad commercial marketing.

Manage the property while searching for a tenant

A vacant care property still requires active management.

Potential risks include:

• Water leaks

• Damp

• Heating failure

• Vandalism

• Unauthorised access

• Pest activity

• Drainage problems

• Deterioration

Regular inspections can help protect the building while the tenant search continues.

The vacancy period may also provide an opportunity to complete:

• Building surveys

• Refurbishment

• Accessibility improvements

• Fire safety works

• Heating upgrades

• Electrical works

• External maintenance

Work with a specialist property consultant

Finding a care provider tenant can involve more than listing a property.

A specialist property consultant can support:

• Tenant sourcing

• Care operator introductions

• Property marketing

• Lease strategy

• Property assessment

• Planning coordination

• Refurbishment

• Contractor coordination

• Investment assessment

• Property management

This can be particularly useful where the landlord owns specialist care property but does not have an established network of potential operators.

Working with Fraser Bond

Fraser Bond supports landlords, investors and developers looking for suitable care provider tenants across London and the UK.

Support can include:

• Care provider tenant sourcing

• Care property marketing

• Operator introductions

• Property assessment

• Lease strategy

• Acquisition support

• Planning coordination

• Refurbishment planning

• Building works

• Contractor coordination

• Investment assessment

• Property management

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

Finding a suitable care provider tenant

A care provider tenant wanted requirement should begin with a clear understanding of the property and the type of operator it can support.

The landlord should assess the building's location, condition, planning position, facilities and potential use before approaching providers.

The prospective tenant should then be assessed for relevant experience, financial capacity, operational capability and regulatory position.

Where regulated activities are involved in England, the provider's CQC registration requirements should also be considered. CQ