If someone was to tell you that they were living in an empty building not designed for residential use, you’d be forgiven for looking at them askance. Are they confessing to squatting in a property illegally, you might well wonder?
Not necessarily. In fact, thousands of people are living in exactly this situation completely above board, and with the full consent of the landlord. In fact, they’re doing the landlord a favour. Rather than intruding in an empty building illegally, they’re actually living in the property to help keep vandals and trespassers out. It’s called property guardianship, and it’s an increasingly popular form of vacant property management.
Yet despite its growing popularity, it’s fair to say that property guardianships are still viewed with suspicion in some quarters. This article in Time Out sums up much of the media’s stance towards it, the reference to a ‘murky world’ in the headline making the reader feel as if they are getting treated to an expose of something underhand and dubious.
But the reality is that property guardianship is nothing of the sort. It’s an arrangement that suits both parties. For landlords wondering what to do with a vacant property, having live-in ‘guardians’ on site can save them tens of thousands of pounds in security fees. In fact, it gives them an income from what would otherwise be an unused asset.
For the guardians themselves, it provides a cheap living option, often in sought-after locations at a fraction of what they would have to pay on the mainstream residential rental market.
So what exactly is the legal basis of the relationship between a landlord and a live-in guardian? How does it differ to a standard residential tenancy, and what protections are there in place for guardians?
Licence to occupy
The legal basis for the arrangement between a landlord and a property guardian is a type of contract known as a licence to occupy. This differs from a tenancy agreement in a number of respects. The government defines the key differences as follows: “In law, a licence arises when there is no right to exclusive possession and there is no intention to enter into a legal relationship of landlord and tenant.”
The landlord-tenant relationship is legally very clearly defined, with a long list of rights and responsibilities on both sides. A licence to occupy covers situations where there is a desire on both sides for a looser type of arrangement. It’s not, however, a complete free for all. It sets out the terms of the agreement in a consensual manner, covering things like how much the tenant will pay, what is included (bills and rent are often bundled into a single payment), and how long the agreement will last, if applicable
The reference to exclusive possession is important. When you sign a tenancy agreement, you take on certain rights as the occupier. This includes the right to refuse entry to other people, including the landlord, without due notice. This can apply to either the whole property or a single room, depending on the nature of the tenancy agreement.
The fact that there is no right to exclusive possession in a licence to occupy means that, as the occupier, you cannot prevent other parties entering the building at any time, for example contractors carrying out work. You can also be moved to other accommodation within the building at any time, and landlords only need to give 28 days notice for the occupancy to end.
What rights do property guardians have?
The looser arrangement that a licence to occupy represents is sometimes used as grounds to claim that property guardians are vulnerable to exploitation by unscrupulous landlords. But it’s a misrepresentation to claim that people living in a property under a licence to occupy are at a disadvantage or that they don’t have any rights or protections at all.
For a start, the same health and safety laws apply to any property where people are resident, regardless of the terms of occupancy. This is particularly important in property guardianships, as guardians are often asked to live in vacant non-residential buildings. It means the landlord must take care of things like fire and gas safety, ensure there are no obvious hazards, and provide basic living amenities.
Moreover, if a property is occupied by five or more people that constitute two or more different households, the landlord must have a House in Multiple Occupation (HMO) licence, regardless of the basis on which they are renting out the premises. This makes the building subject to local authority checks to make sure it meets residential safety standards.
Ultimately, it’s not in anyone’s interests to treat property guardianships as anything other than a mutually beneficial arrangement. Yes, living as a property guardian means you may end up living in a property for a shorter period of time than you would otherwise typically sign a tenancy agreement for. But people go into the arrangement with open eyes knowing that is the case. It even suits a lot of people for a wide range of different reasons. And the payback is the money you save on rent.
For landlords, it makes sense to treat property guardians with dignity and respect. After all, they are there to fulfil a role – to be their eyes and ears on the ground, helping them to keep what would otherwise be an empty and vulnerable asset in use and secure. Whether it be legal wrangles or trying to get planning permission for development, sometimes properties can be left out of use for lengthy periods. In these cases, it makes sense for landlords to nurture good relationships with live-in guardians they can trust.