Landlord With Property Suitable for Care Home - What Owners Should Check

A practical guide for landlords with property suitable for a care home, covering planning, CQC requirements, property condition, accessibility, fire safety, refurbishment, leases and finding care operators.

If you are a landlord with property suitable for a care home, your building may attract interest from care operators looking for premises to lease or purchase.

Large houses, former care homes, substantial detached properties, bungalows and other buildings with multiple bedrooms can sometimes provide a suitable starting point for residential care.

However, owning a large or previously used care property does not automatically mean that it can operate as a care home.

The proposed use, planning position, building condition, accessibility, fire safety arrangements and regulatory requirements all need to be assessed before a landlord agrees terms with an operator.

In England, CQC identifies a care home as a location where people live as their main or sole residence and receive care or treatment. CQC also assesses the size, layout and design of premises when considering care providers.

What Types of Property Can Attract Care Providers?

Landlords may have properties that care operators could consider, including:

• Large detached houses

• Large semi-detached houses

• Bungalows

• Former care homes

• Former residential homes

• Former nursing homes

• Large HMOs

• Specialist accommodation

• Institutional buildings

• Properties with multiple bedrooms

• Houses with substantial gardens

• Buildings with generous parking

• Properties requiring refurbishment

The property's size is only one consideration.

A care operator will also look at whether the building can accommodate the intended residents and whether it can realistically meet the operational requirements of the proposed service.

What Makes a Property Suitable for a Care Home?

A care operator may assess:

• Number of bedrooms

• Bedroom sizes

• Number of bathrooms

• Communal areas

• Kitchen facilities

• Ground-floor accommodation

• Accessibility

• Fire safety

• Garden and outdoor space

• Parking

• Heating

• Electrical systems

• Plumbing

• Property condition

• Location

• Transport links

• Local amenities

• Planning history

• Potential refurbishment requirements

The ideal property depends on the type of care being provided.

A building intended for older people's residential care may have different requirements from one intended for younger adults or specialist care.

Large Houses Can Be Attractive to Care Operators

Large houses can offer a useful combination of residential accommodation and communal space.

A suitable property may have:

• Several bedrooms

• Multiple reception rooms

• Large kitchen

• Several bathrooms

• Garden

• Parking

• Storage

• Ground-floor rooms

• Space for staff facilities

Multiple reception rooms can also provide flexibility for lounges, dining areas, activities, meetings or quieter spaces.

However, a large floor area does not automatically make a property suitable.

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

Former Care Homes Can Be Worth Marketing

A landlord with a former care home may have a property that is particularly relevant to care operators.

Existing features may include:

• Multiple bedrooms

• Communal lounges

• Dining facilities

• Accessible bathrooms

• Staff rooms

• Kitchen facilities

• Parking

• Fire safety installations

• Care-related planning history

Previous care use can be useful information when marketing the property.

However, landlords should be careful about describing a former care home as currently "CQC registered" or "CQC approved".

CQC registration is connected to the provider and its regulated activities. A new operator must establish its own registration requirements.

CQC Registration Does Not Automatically Transfer

This is an important point for landlords.

If a previous care provider operated from the property, its CQC registration does not simply become the new operator's registration when the building changes hands.

CQC states that providers must identify the locations from which regulated activities are carried on or managed, and providers need to apply for the appropriate registration before carrying on regulated activities.

A landlord should therefore market the property's factual characteristics rather than promising regulatory approval.

For example, it is more appropriate to state that a property is a former care home with previous care use than to imply that the incoming operator inherits the previous registration.

Planning Use Needs to Be Checked

Planning is another important consideration.

Planning Portal identifies residential care homes and nursing homes under Use Class C2 residential institutions.

However, landlords should not assume that every large residential property can simply be operated as a C2 care home.

The relevant planning position depends on the actual proposed use.

Questions include:

• What is the property's current lawful use?

• What was its previous use?

• How many residents will live there?

• What type of care will be provided?

• Will staff live at the property?

• Will external alterations be required?

• Will parking requirements change?

• Will there be additional traffic?

• Does the proposed operation require a material change of use?

The local planning authority or a planning professional should be consulted where appropriate.

Planning and CQC Are Separate

Landlords should understand the difference between planning and care regulation.

Planning permission concerns the use and development of the property.

CQC registration concerns regulated health and adult social care activities.

A property can therefore have a planning position that appears suitable while the incoming operator still needs to complete its own CQC registration.

CQC states that regulated activities cannot be carried on without the required registration and that premises need to be ready and suitable when the provider applies.

This distinction should be reflected in any property marketing.

Property Condition Should Be Assessed Before Marketing

A landlord should understand the condition of the property before approaching care providers.

Check:

• Roof

• Damp

• Windows

• Doors

• Electrical installations

• Plumbing

• Heating

• Hot water

• Drainage

• Kitchen

• Bathrooms

• Flooring

• Stairs

• External areas

• Garden

• Security

A building survey can identify major defects that could affect the operator's refurbishment budget.

This is particularly important for older houses and former care properties that may have been vacant for some time.

Accessibility Can Affect the Property's Appeal

A conventional house may require significant adaptations before it can accommodate residents with mobility difficulties.

Potential works include:

• Ramps

• Handrails

• Level access

• Wider doorways

• Accessible bathrooms

• Wet rooms

• Stair adaptations

• Accessible parking

• Improved lighting

• Safer external pathways

The landlord does not necessarily need to complete every possible adaptation before marketing.

Instead, it can be useful to understand what changes the building can accommodate and what works may be commercially realistic.

Fire Safety Should Be Considered Early

Care operators will need to consider fire safety as part of assessing the property.

Depending on the building and proposed use, this may involve:

• Fire detection

• Alarm systems

• Fire doors

• Escape routes

• Emergency lighting

• Compartmentation

• Fire-resistant construction

• Signage

• Evacuation arrangements

• Emergency access

A domestic fire safety arrangement should not automatically be assumed to be sufficient for a care home.

A suitable professional assessment should be obtained for the proposed use.

Bedrooms and Bathrooms

The bedroom and bathroom arrangement can have a major influence on whether a property works for a care operator.

A landlord should provide accurate information about:

• Number of bedrooms

• Bedroom dimensions

• Number of bathrooms

• Ground-floor toilets

• Accessible bathrooms

• Shower facilities

• Potential for additional bathrooms

• Storage

Where possible, provide floor plans.

This allows operators to assess the building before arranging an inspection.

Communal Areas Can Add Value

Care homes generally require more than bedrooms.

Useful communal areas can include:

• Lounge

• Dining room

• Second reception room

• Activity room

• Quiet room

• Kitchen

• Conservatory

• Garden

A property with several reception rooms can therefore offer flexibility to an operator.

The suitability will still depend on the provider's particular service model.

Outdoor Space and Parking

A garden can be useful for residents and may increase the practical appeal of a property.

Consider:

• Garden size

• Secure boundaries

• Gates

• Pathways

• Steps

• Slopes

• Lighting

• Seating

• Accessibility

Parking can also be important for:

• Staff

• Family visitors

• Visiting professionals

• Deliveries

• Mobility vehicles

The landlord should provide accurate information rather than assuming that a large driveway will automatically satisfy the operator's requirements.

Location Matters to Care Operators

A care provider may consider the property's proximity to:

• GP surgeries

• Pharmacies

• Hospitals

• Shops

• Public transport

• Parks

• Community facilities

• Family networks

• Local services

A property located within an established residential community can potentially offer practical advantages for some care models.

The ideal location depends on the provider's residents and service requirements.

Refurbishment Can Make a Property More Suitable

Some landlords may have a property that is structurally suitable but requires modernisation.

Potential works can include:

• Bathroom refurbishment

• Wet-room installation

• Kitchen upgrades

• Electrical works

• Plumbing

• Heating improvements

• Accessibility adaptations

• Fire safety works

• Flooring

• Decoration

• Door alterations

• Garden improvements

• Security upgrades

Fraser Bond can assist landlords and care operators with refurbishment planning, building works, contractor coordination, property repairs and maintenance.

Should the Landlord Refurbish Before Finding an Operator?

Not necessarily.

The better approach can depend on the property's condition and the type of operator being targeted.

Some landlords may complete essential works before marketing.

Others may prefer to identify an operator first and agree the required adaptations as part of the lease negotiations.

This can prevent the landlord from spending money on alterations that do not match the eventual operator's requirements.

Where substantial works are involved, the responsibilities should be agreed before the lease is completed.

Who Pays for Property Adaptations?

Several arrangements are possible.

Landlord-funded works

The landlord completes agreed improvements before occupation.

Operator-funded works

The care provider pays for adaptations required for its particular service.

Shared funding

The landlord and provider divide responsibility for agreed works.

Lease-based arrangement

The parties reflect the refurbishment investment in the rent, lease term or other commercial terms.

The lease should clearly establish responsibility for alterations, maintenance and reinstatement.

Lease Terms for Care Operators

A care provider may seek a longer lease because it can incur substantial costs adapting the building.

Important terms can include:

• Permitted use

• Lease length

• Rent

• Rent reviews

• Break clauses

• Repairs

• Maintenance

• Insurance

• Alteration rights

• Adaptation rights

• Planning responsibilities

• Regulatory responsibilities

• Assignment

• Subletting

• Reinstatement

A landlord should obtain appropriate legal advice before agreeing the final terms.

What Landlords Should Ask Potential Care Operators

Before agreeing a lease, landlords should understand the proposed operation.

Questions can include:

• What type of care service will operate from the property?

• Who will live there?

• How many residents are expected?

• What care will be provided?

• What staffing arrangements are required?

• What adaptations are needed?

• What planning approvals are required?

• What CQC registration is required?

• Who will fund the works?

• Who will maintain the property?

• What lease term is required?

This helps establish whether the operator's requirements are compatible with the building.

What Care Providers Will Ask the Landlord

A prospective operator may want information about:

• Planning history

• Current use

• Previous care use

• Property title

• Floor plans

• Building condition

• Fire safety

• Accessibility

• EPC

• Utilities

• Parking

• Garden

• Lease terms

• Permitted alterations

• Repair obligations

• Insurance

• Proposed rent

Preparing this information in advance can make the property easier for an operator to assess.

Prepare a Property Information Pack

A landlord with property suitable for a care home can prepare a concise property pack containing:

• Property address

• Floor area

• Floor plans

• Bedroom count

• Bathroom count

• Reception rooms

• Kitchen details

• Garden

• Parking

• Accessibility features

• EPC

• Planning history

• Current lawful use

• Previous care use

• Property condition

• Recent refurbishment

• Asking rent

• Lease requirements

• Availability

This gives care operators the information they need to decide whether to investigate further.

A Practical Example

Imagine a landlord owns a six-bedroom detached property with:

• Six bedrooms

• Four bathrooms

• Three reception rooms

• Large kitchen

• Ground-floor bedroom

• Rear garden

• Seven parking spaces

• Good public transport

• Local shops and healthcare facilities nearby

A care provider is looking for a property on a long-term lease.

Before agreeing terms, the landlord and operator could assess:

• Proposed resident group

• Number of residents

• Planning position

• CQC requirements

• Accessibility

• Fire safety

• Refurbishment requirements

• Lease length

• Rent

• Repairs

• Insurance

• Adaptation responsibilities

The property may have characteristics that make it worth investigating, but its final suitability depends on the proposed service and the relevant planning and regulatory requir