To give learners a deep understanding of lease structures, responsibilities, and how to build strong relationships with supported living operators.
Acquire Knowledge, Empower Self.
Our comprehensive learning will equip learners to understand supported living deeply and navigate the associated property investment landscape effectively while avoiding common pitfalls.
Lease Agreements and Future Working Relationships with Providers
Module 03: Legal Structures & Partnership Management
Objective
Topics Covered
Overview of supported living lease types (FRI leases, CPI-linked, indexed)
Lease lengths and break clauses
Responsibilities of the landlord vs. provider
Building long-term relationships with care providers
Service level agreements and what to include
Case studies of real lease agreements
01
Overview of Supported Living Lease Types
Full Repairing and Insuring (FRI) leases with inflation protection
Supported living leases often take the form of Full Repairing and Insuring (FRI) leases, where the tenant (usually a housing association or care provider) is responsible for all repairs and insurance costs. These leases typically include inflation-linked rent reviews to protect landlords against inflationary pressures.
Consumer Price Index (CPI)
Inflation measure excluding housing costs
Retail Price Index (RPI)
Older inflation measure including housing costs (being phased out)
CPIH
CPI including housing costs, considered more comprehensive
Note: Leases often specify rent increases as CPI + margin (e.g., CPI +1%) with caps/collars to balance inflation risks.
02
Lease Lengths and Break Clauses
Long-term stability with flexible exit options
20-30 Years
Supported living leases are usually 20–30 years, aligning with the need for long-term housing stability.
Break clauses may apply if:
Property maintenance or care standards fail
Government policy or funding changes
Mutual redevelopment agreement
Important: Clauses must include notice periods and consequences to protect all parties.
03
Responsibilities of the Landlord vs. Provider
Clear division of duties under FRI leases
Landlord Responsibilities
- Provide property in good condition
- Ensure structural integrity
- Compliance with building safety regulations
- May cover external/major repairs
Provider Responsibilities
- All internal/external repairs
- Insurance coverage
- Utilities management
- Day-to-day maintenance
- Adaptations for tenant needs
This division reduces landlord involvement while giving providers control to meet care standards.
04
Building Long-Term Relationships with Care Providers
Partnership approach for sustainable success
Clear agreements
Defining roles and responsibilities
Regular communication
Joint working groups and meetings
Flexibility
Response to care/funding changes
Commitment
To tenant-centered outcomes
Strong relationships foster stability, planning, and innovation in supported living.
05
Service Level Agreements and What to Include
Ensuring accountability and quality standards
Maintenance schedules
Repair response times and procedures
Compliance standards
Fire, health, and housing regulations
Tenant support
Staff ratios and care levels
Performance monitoring
Reporting and review systems
Dispute resolution
Clear procedures and escalation paths
Review processes
Amendment and renewal procedures
SLAs ensure accountability and balance between care quality and property stewardship.
06
Case Studies of Real Lease Agreements
Practical examples of successful arrangements
25-Year FRI Lease
CPI+1% Rent Increases
With caps/collars at 4–7% for inflation protection
Government-Backed
Housing Benefit Contracts
Leases tied to local authority funding agreements
Collaborative Design
OT Integration
Occupational therapist input shaping pre-lease adaptations
Flexible Terms
Renegotiation Clauses
Break clauses enabling adjustment after funding changes
Key Outcomes
Confidently negotiate and structure long-term leases with supported living providers
Understand ongoing management responsibilities and relationship expectations