As a care provider, whether you are looking to expand your supported living business or just starting out, you will need to secure a safe, secure, quality home for your clients to live in.

The two main ways to do this are either to buy a property or lease it.  But either way, it’s essential that you understand the agreements needed between all parties. These include the tenant/client, the commissioner, local housing, a registered provider (also known as a registered social landlord), if needed and yourself.

So why lease rather than buy:

Regulatory requirements – if you are offering commissioned services that come under CQC then you will need to show a separation between care and tenancy.  This is so your client has choice, in not only where they live but who delivers care to them. If you own the property and can't meet a tenant's care needs, you might have to ask them to move out to accommodate a new client. This isn't ideal for the tenant's wellbeing or stability.  So, while this is an option, you may need a separate corporate identity to own the property. 

Mortgage considerations – Whilst mortgages are available you will need to go to a special lender which could be more costly than high street lending.

Capital outlay – Typically you will need a significant deposit to purchase the property if you are going to get a mortgage.  Plus, once purchased the property may well need adapting or modernising, certainly works will be needed to ensure it meets the regulatory standards as a home housing vulnerable people, all of which will need a capital injection.  With a lease, you don’t have these costs.

Maintenance and repairs – Owning your own property means that you will be responsible for all maintenance and upkeep of the property, taking up valuable time and effort distracting you from looking after the people in your care. If you lease the property, then you could have the opportunity to share the maintenance with the owner.

Adaptations – If your client has specific needs, it’s likely that the property will need adaptations, and unless you are a builder / developer, these alterations could be costly and whilst grants are available to alleviate these costs, it could mean that the venture isn’t financially viable.  Also, these grants are only given where an individual is nominated, if you can’t deliver the property within the given time frame, you may lose this client to another provider, which would be financially crippling.

As a care provider, buying a property for supported living can be lucrative, there are some hurdles to navigate to make sure you and the property are compliant and financially viable.

Consider the position if you lease the property:

Regulatory requirements – Leasing eliminates the concern of separating care and tenancy, as you don't own the property.

Mortgage considerations – By leasing, you avoid the complexities and potential higher costs associated with specialist mortgages. The property owner handles all mortgage-related matters, freeing you from this financial burden.

Capital outlay - You can preserve your capital for other critical aspects of your business, such as staff training, marketing, or improving care services. This allows for faster expansion and greater financial flexibility.

Maintenance and repairs - When leasing, depending on what you have agreed in your lease, some maintenance responsibilities often fall to the property owner or the registered provider.

Adaptations - You can work with property owners to make necessary changes without bearing the full financial burden. This allows you to meet clients' specific needs more efficiently and cost-effectively, enhancing your ability to provide tailored care solutions.

If you are looking to expand your business and find a property to lease, The Gateway is the only online property portal dedicated to the care sector.

All our properties are listed by property owners or investors wanting to lease to supported living or social housing providers.  

You can subscribe to the Gateway and search the site for properties in your area here.