Find Care Home Operator: How to Find the Right UK Care Home Operator

A practical guide for landlords, investors and property owners looking to find an experienced care home operator for a property across London and the UK

Finding a care home operator can be an important step for a landlord or investor who owns an existing care home, former care home or property suitable for residential care.

The right operator can bring the management experience, staffing structure, care expertise and operational systems required to run the service, while the property owner can focus on the building, lease, investment and long-term asset strategy.

However, finding a care home operator is not simply about locating a company that wants a property. The operator should be suitable for the building, resident profile, location, planning position and proposed commercial arrangement.

In England, a provider intending to carry out regulated activities generally needs to register with the Care Quality Commission before operating. CQC states that the legal entity carrying on the regulated activity is responsible for registration, rather than the property itself.

What does it mean to find a care home operator?

Finding a care home operator means identifying a care provider capable of taking responsibility for the operation of a care home under an appropriate commercial arrangement.

The property could be:

• An existing care home

• A former care home

• A nursing home

• A dementia care home

• An elderly care home

• A specialist care home

• A learning disability care property

• A physical disability care home

• A newly developed care facility

• A healthcare building being converted for residential care

Depending on the owner's objectives, the operator could potentially occupy the property under a long-term lease, management arrangement, acquisition agreement or another suitable structure.

Start with the care home property itself

Before approaching operators, the owner should establish exactly what the property offers.

A useful property brief can include:

• Location

• Floor area

• Number of bedrooms

• Number of registered or potential beds

• En-suite provision

• Communal areas

• Dining facilities

• Kitchen

• Staff facilities

• Gardens

• Parking

• Accessibility

• Lift provision

• Fire safety systems

• Existing planning use

• Previous care use

• Current condition

• EPC

• Available date

• Proposed lease terms

This information allows potential operators to determine whether the property fits their existing business model.

For example, a 40-bedroom care home with en-suite rooms, communal lounges, gardens and a commercial kitchen is likely to attract a different operator profile from a small six-bedroom specialist property.

Match the operator to the care model

Not every care operator will be suitable for every property.

Operators may specialise in:

• Residential elderly care

• Nursing care

• Dementia care

• Learning disability care

• Physical disability care

• Mental health care

• Specialist residential care

• Rehabilitation

• Other forms of adult social care

The property should therefore be marketed according to its actual characteristics and potential use.

A dementia-focused operator, for example, may have different requirements from an operator concentrating on general residential care.

Understanding the intended resident group can make the operator search more targeted.

Find an operator with relevant experience

The operator's experience should be assessed before agreeing a long-term arrangement.

Property owners can consider:

• Existing care homes operated

• Experience with the relevant care model

• Number of beds currently managed

• Management structure

• Registered managers

• Staffing approach

• CQC registration and history where applicable

• Expansion plans

• Experience with leased care homes

• Financial position

• Existing property portfolio

CQC says its registration process considers whether providers can deliver safe, effective, caring, responsive and well-led services. Its assessment can also consider staffing, the skills and experience of personnel, and the size, layout and design of the premises.

This makes the operator's operational capability an important consideration alongside the property itself.

Check the operator's CQC position

For a care home in England providing regulated activities, the operator's CQC position should be established before occupation.

CQC states that carrying on a regulated activity without registration is an offence. The regulator also explains that it is the legal entity carrying on the regulated activity that must register.

An owner should therefore establish:

• Whether the operator is already registered

• Which regulated activities it provides

• Whether the proposed care service fits its existing registration

• Whether the proposed location needs to be included

• Whether changes to registration are required

• Whether a new registration application may be necessary

CQC states that locations where regulated activities are carried on at or from them must be identified as part of the registration process, with changes to relevant locations potentially requiring an application to vary registration conditions.

Previous CQC registration associated with a building should not automatically be treated as approval for a new operator.

Check the planning position

Planning is another important part of finding a care home operator.

Before marketing the property, establish:

• Current lawful use

• Previous lawful use

• Planning permissions

• Planning conditions

• Number of approved bedrooms or beds

• Any restrictions on use

• Potential for extension

• Potential for additional bedrooms

• Whether refurbishment requires planning consent

• Whether the proposed operator's model is compatible with the planning position

A former care home may have an advantage because of its previous use and established planning history.

However, owners should still obtain appropriate planning advice where the proposed operator intends to change the service model, extend the building or alter the property significantly.

Prepare the property before approaching operators

A professional property presentation can make the operator search more effective.

The owner can prepare:

• Floor plans

• Photographs

• Property specification

• Planning information

• EPC

• Building survey

• Fire safety information

• Existing care documentation

• Refurbishment history

• Lease information

• Proposed commercial terms

For care home properties, details such as bedroom sizes, en-suite bathrooms, communal facilities, kitchen capacity, gardens and accessibility can be particularly important.

An operator should be able to understand the opportunity without having to request basic information repeatedly.

Decide whether the property requires refurbishment

Some care homes may require refurbishment before an operator can take occupation.

Potential works include:

• Bedroom refurbishment

• En-suite bathroom upgrades

• Kitchen improvements

• Communal area refurbishment

• Flooring

• Decoration

• Heating upgrades

• Electrical works

• Fire safety improvements

• Accessibility works

• Roof repairs

• Window replacement

• Garden improvements

An owner can either undertake works before finding an operator or negotiate an arrangement where the incoming operator carries out some or all of the improvements.

The appropriate approach will depend on the lease structure, available capital, property condition and operator requirements.

Find an operator for a former care home

Former care homes can be attractive to operators because the building may already contain specialist accommodation and facilities.

Before marketing a former care home, owners should investigate:

• Why the previous operator left

• How long the building has been vacant

• Current building condition

• Previous planning use

• Previous care model

• Number of bedrooms

• Existing equipment

• Accessibility

• Required refurbishment

• Local market demand

A former care home may require significant investment before reopening.

However, its existing layout and infrastructure can provide a useful starting point for an operator looking for expansion.

Find an operator for a new care home development

Care home operators can also be identified before a development is completed.

Early discussions can help establish requirements around:

• Bedroom sizes

• En-suite bathrooms

• Communal areas

• Dining facilities

• Kitchen design

• Staff accommodation

• Storage

• Accessibility

• Gardens

• Parking

• Resident circulation

• Service infrastructure

An operator may have specific design preferences based on its operating model.

For developers, understanding these requirements early can help inform the design and commercial strategy, subject to planning and professional advice.

Consider the operator's financial position

A care home lease can represent a long-term commitment, so an owner's due diligence should extend beyond the operator's brand and operating history.

Depending on the proposed arrangement, the owner may review:

• Company accounts

• Trading history

• Existing property portfolio

• Rent payment history

• Funding arrangements

• Parent company support

• Guarantees

• Deposits

• Existing liabilities

• Business plan

• Proposed refurbishment investment

The property may be physically suitable, but the commercial arrangement still needs to be sustainable for both parties.

Professional legal and financial advice should be obtained before agreeing material lease terms.

Consider the lease structure

Once a suitable operator has been identified, the commercial structure needs to be established.

Potential arrangements include:

• Long-term lease

• Commercial lease

• Management agreement

• Sale and leaseback

• Property sale

• Joint venture

• Development agreement

The agreement should clearly establish responsibility for:

• Rent

• Repairs

• Insurance

• Structural works

• Maintenance

• Compliance-related property works

• Refurbishment

• Alterations

• Service charges

• Assignment

• Subletting

• Dilapidations

For a specialist care property, the lease should be reviewed with appropriate professional advice.

Find operators for specialist care homes

Specialist properties require a more targeted operator search.

Potential specialisms include:

• Dementia care

• Nursing care

• Learning disabilities

• Physical disabilities

• Mental health

• Complex care

• Rehabilitation

• Specialist elderly care

The operator should have relevant experience rather than simply being a general residential care provider.

For example, a property with extensive accessibility adaptations and therapy areas may be particularly relevant to an operator serving residents with complex physical or neurological needs.

Consider the location when finding a care home operator

Location can influence which operators are interested in a property.

Relevant considerations include:

• Local population

• Transport links

• Proximity to healthcare facilities

• Local amenities

• Staff accessibility

• Parking

• Residential surroundings

• Planning restrictions

• Property size

• Local competition

• Potential demand

An operator expanding across London may have different location requirements from one looking for regional opportunities.

The operator search should therefore consider both the property's physical characteristics and its local market.

Find a care home operator for a vacant property

Vacant care homes need active management while an operator is being sourced.

Potential risks include:

• Water leaks

• Damp

• Heating failure

• Vandalism

• Unauthorised access

• Pest activity

• Drainage problems

• Deterioration

Regular inspections can protect the property while negotiations take place.

The vacancy period can also be used for:

• Building surveys

• Refurbishment

• Accessibility upgrades

• Fire safety works

• Heating improvements

• Electrical works

• External maintenance

This can make the property more suitable for the incoming operator.

Work with a specialist care property consultant

Finding a care home operator can involve identifying suitable providers, presenting the property, arranging introductions and supporting negotiations.

A specialist property consultancy can assist with:

• Operator sourcing

• Property marketing

• Care property assessment

• Acquisition advice

• Lease strategy

• Planning coordination

• Refurbishment

• Contractor coordination

• Investment assessment

• Property management

This can be particularly useful for landlords who own a specialist property but do not have an established network of care operators.

Working with Fraser Bond

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

Support can include:

• Care operator sourcing

• Care home property marketing

• Operator introductions

• Property assessment

• Acquisition support

• Lease strategy

• Planning coordination

• Refurbishment planning

• Building works

• Contractor coordination

• Investment assessment

• Property management

Whether you own an existing care home, former care home or newly developed care facility, Fraser Bond can help develop a property strategy around finding an appropriate operator.

Finding the right care home operator

Finding a care home operator should start with the property rather than the operator list.

The building's location, size, condition, planning position, facilities and intended resident profile should be clearly understood before approaching potential operators.

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

For properties in England, CQC registration should be considered where the proposed service involves regulated activities. CQC states that providers must be registered before carrying on regulated activities and that the legal entity responsible for the activity is the party that registers.

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