Property Guardianship

Property guardianship is a contractual arrangement where individuals temporarily occupy a property (usually commercial and awaiting planning permission) to protect it from vacancy and associated risks such as vandalism.  These are under a licence rather than a tenancy, in return for licence fees.  These arrangements can raise complex legal issues depending on how they are structured and operated.

It depends on the reality of the arrangement, not just the wording of the agreement. If structured properly, guardians can be licensees but there are common pitfalls for property owners/guardianship  companies. Disputes often arise where guardians argue they have tenancy rights despite being described as licensees.

In most cases, the property owner’s relationship is with the guardianship company, not the individual guardians.  This distinction is important when disputes arise around possession, enforcement or liability.

Termination depends on the agreements in place and the legal status of the occupation. Ending arrangements incorrectly can expose owners or guardianship companies to claims, including unlawful evictions.

A rent repayment order (“RRO”) allows certain occupiers to reclaim rent where specific legal requirements have not been met. RRO claims are increasingly brought in the context of property guardianship schemes.