I Have a Property for a Care Provider - How to Find the Right Care Operator

If you have a property for a care provider, you may have an opportunity to generate long-term income by leasing the building to an established care operator. Large residential properties, former care facilities, hotels and other suitable buildings can attract care providers looking to expand into new locations.

However, finding the right operator requires more than simply advertising the property. The building needs to match the operator's care model, regulatory requirements, budget and long-term plans.

What Type of Property Can a Care Provider Use?

Care providers may consider a wide range of properties depending on the type of service they intend to operate.

Potential properties can include:

• Former care homes

• Large detached houses

• Former nursing facilities

• Hotels and guesthouses

• Converted residential buildings

• Purpose-built care facilities

• Properties requiring refurbishment

• Buildings with potential for supported living or specialist care use

Important factors include the property's size, layout, accessibility, bedrooms, bathrooms, communal areas, outdoor space, parking and overall condition.

Location can also influence demand. In London, operators may consider proximity to public transport, local services, hospitals, employment areas and the communities they intend to serve.

How to Find a Care Provider for Your Property

If you have a property for a care provider, targeted marketing can be more effective than presenting it as an ordinary residential or commercial property.

A property information pack should clearly explain:

• Location

• Total floor area

• Number of bedrooms

• Number of bathrooms

• Communal areas

• Kitchen facilities

• Garden or outdoor space

• Parking

• Existing planning position

• Previous use

• Current condition

• Potential refurbishment requirements

• Available lease structure

• Expected rent

• Availability

Providing this information helps care operators quickly determine whether the property could fit their requirements.

What Will a Care Provider Look For?

A care operator may assess the property from both an operational and commercial perspective.

The operator could consider whether the building provides enough space for residents, staff and communal activities. Accessibility, fire safety, bathrooms, circulation areas and the general condition of the property can also be important.

CQC states that premises used for regulated care must be clean, secure, suitable for their intended purpose, properly maintained and appropriately located.

This means landlords should understand the condition of their property before approaching potential operators.

Does the Care Provider Need CQC Registration?

If the proposed service involves regulated health or adult social care activities in England, the operator may need to register with the Care Quality Commission.

CQC explains that the legal entity carrying out the regulated activity is responsible for registration rather than simply the property or care setting.

This distinction can be useful for landlords. You may own the building and lease it to a separate care company that operates the service.

The operator would then need to establish which regulated activities apply to its proposed service and meet the relevant registration requirements. CQC states that carrying out a regulated activity without registration is an offence.

Preparing Your Property for a Care Operator

You do not necessarily need to complete every possible improvement before finding a tenant.

In some cases, an experienced care provider may prefer to undertake or contribute towards refurbishment because it wants the property configured around its own operating model.

Potential works could include:

• Bathroom upgrades

• Accessibility improvements

• Fire safety works

• Electrical upgrades

• Heating improvements

• Kitchen refurbishment

• Bedroom improvements

• Communal area refurbishment

• External repairs

• Garden improvements

• Security upgrades

The best approach depends on the property's existing condition and the requirements of the operator.

For example, spending heavily on a refurbishment before identifying a tenant could result in work that does not match the eventual operator's requirements.

Planning and Change of Use

Planning should be considered before committing to a care property arrangement.

A building's existing planning status may not automatically permit every type of care use. The proposed service, existing use, number of residents and extent of alterations can all affect the planning position.

This is particularly important where a large residential property is being converted into a specialist care facility.

Establishing the planning position early can help landlords and operators understand what can realistically be achieved with the property.

Choosing the Right Care Provider

Getting an enquiry from a care company does not necessarily mean that the company is the right tenant.

Landlords should consider appropriate due diligence, including:

• Company's trading history

• Existing care operations

• Management experience

• Financial position

• Proposed care model

• CQC registration position where applicable

• Proposed refurbishment

• Lease requirements

• Insurance arrangements

• Maintenance responsibilities

• Long-term business plan

CQC's registration process considers factors including the suitability of applicants, staffing, premises, policies and how the proposed service will be managed.

For a landlord, understanding the operator's experience and business plan can therefore be an important part of selecting a suitable tenant.

Lease Terms for a Care Property

Care operators may want longer leases because they could invest substantial money into adapting the property.

Lease negotiations may cover:

• Lease length

• Rent

• Rent reviews

• Rent-free periods

• Repair obligations

• Refurbishment responsibilities

• Alteration permissions

• Insurance

• Service costs

• Assignment and subletting

• Break clauses

• Reinstatement obligations

If the property requires substantial investment, the commercial terms may need to reflect the cost and time involved in preparing it for occupation.

Example: A Property Owner in London

Consider a landlord who owns a large property in South London with eight bedrooms, several bathrooms, communal rooms, a garden and parking.

The building is currently vacant and requires refurbishment.

Rather than marketing it to ordinary residential tenants, the landlord could position it specifically for experienced care operators seeking an additional facility.

The property could be presented with floor plans, photographs, bedroom details, outdoor space, planning information, refurbishment requirements and proposed lease terms.

A specialist property adviser could then identify and approach operators whose requirements are compatible with the building.

Why Specialist Property Marketing Can Help

A care provider is not simply looking for four walls and a lease. It needs a property that can support its particular service and business model.

This makes specialist marketing important.

Fraser Bond can help property owners assess the commercial potential of suitable buildings, prepare properties for the market, identify appropriate occupiers and coordinate refurbishment or property works where required.

The objective is to connect the right property with an operator that can make practical and commercial use of it.

I Have a Property for a Care Provider - What Should I Do Next?

If you have a property for a care provider, the first step is to establish exactly what type of care use the building could support.

From there, you can assess the planning position, property condition, refurbishment requirements and potential lease structure before approaching suitable operators.

Whether you own a former care home, large residential property, healthcare facility or another building with specialist care potential, Fraser Bond can help you develop a strategy for attracting an appropriate tenant.

If you have a property available for a care provider and want to explore leasing it to an experienced operator, contact Fraser Bond to discuss the property's location, condition, potential use and commercial requirements.