TMCP are hearing how increasingly Managing Trustees are being approached by providers who are offering a “property guardian service”. Under this service the provider agrees to secure an unoccupied property so it cannot be used by squatters, prevent illegal entry and to help deter vandalism. As many Managing Trustees will understand empty properties are difficult to keep secure with the risk of vandalism, theft and squatters being an immediate issue. If Managing Trustees do find themselves in a position where a property or properties will remain empty for a period of time, then they should consider the guidance that has been produced by Methodist Insurance as a starting point. This guidance sets out the steps which Managing Trustees should take when they are responsible for managing empty property:

https://www.methodistinsurance.co.uk/images/mic%20unoccupied%20churches.pdf

If the Managing Trustees are still considering a property guardian service then it can provide a way of keeping the property secure and this is often achieved by the provider arranging for the property to be occupied by a third party on behalf of the Managing Trustees. Managing Trustees should, however, be cautious about entering into such arrangements. TMCP recommend that Managing Trustees seek legal advice if they are considering entering into any such arrangement. The reason for taking advice is that some providers can inadvertently allow third parties to claim rights over the property which will not be the Managing Trustees intention. As well as taking legal advice Managing Trustees should also carefully consider some of the other potential issues which include:

  1. Does residential occupation and use by the third party breach any existing restrictions on the title (for example is the property subject to restrictive covenants preventing its use as a residence)?
  2. Does the property comply with all necessary legislation for use as a residence such as fire safety requirements?     Does the property have a current gas safety certificate?  Are all appliances safe?  Have the appliances been PAT tested?  Does the property have working smoke alarms and carbon monoxide detectors?
  3. Are the Managing Trustees aware of the implications of the Protection from Eviction Act 1977 upon any guardianship arrangements?
  4. Does the potential guardianship arrangement create a House in Multiple Occupation?  Has consideration been given to the additional licensing and planning requirements which will apply?

In March 2017 a case was heard by the Bristol County Court, which decided that an occupier who had been permitted to occupy under a guardianship arrangement was actually a tenant who had the same rights as a tenant granted an Assured Shorthold Tenancy. This was not the intention of the property owner but the Courts view was that the terms of the document which the individual had signed did not reflect the reality of the situation. The Court looked at what was actually happening and concluded that the occupier was effectively a tenant under an Assured Shorthold Tenancy agreement.

Managing Trustees should be clear that Courts will look behind the written documents and consider the actual arrangements which are in place.  Before entering into property guardianship arrangements Managing Trustees should take advice (as mentioned above) and check the terms of any documentation which the provider will be asking occupiers to sign. Managing Trustees will also want to ensure the provider is under clear obligations to make sure that the risk of any occupier being found to be a tenant are minimised. This could perhaps be achieved by requiring the occupier to move frequently either to another room in the property or ideally to another property, by not allowing the occupier to permit other third parties to stay in the property or any part of it. It is not sufficient to inspect properties and keep keys to individual rooms for this purpose.

TMCP would be happy to review any proposed property guardianship service contract and would assist Managing Trustees in clarifying potential issues, so they can obtain clear legal advice on any issues before such contracts are signed. For further information please contact TMCP Legal.

Disclaimer

Please note that this document is to provide guidance and assistance to Managing Trustees and their professional advisers. This guidance note is general in nature, may not reflect all recent legal developments and may not apply to the specific facts and circumstances of any particular matter. Also note that nothing within the documents and guidance notes provided by TMCP nor any receipt or use of such information, should be construed or relied on as advertising or soliciting to provide any legal services. Nor does it create any solicitor-client relationship or provide any legal representation, advice or opinion whatsoever on behalf of TMCP or its employees. Accordingly, neither TMCP nor its employees accept any responsibility for use of this document or action taken as a result of information provided in it. Please remember that Managing Trustees need to take advice that is specific to the situation at hand. This document is not legal advice and is no substitute for such advice from Managing Trustees' own legal advisers.