The licence structure — why guardians are not tenants
Street v Mountford [1985] AC 809: if an arrangement grants exclusive possession of residential accommodation for a term at a rent, it is a tenancy — regardless of what the parties call it. Guardian companies negate one or more of the three hallmarks: (1) they retain a genuine key and right of access (not nominal); (2) guardians may share communal areas without exclusive possession; (3) guardians are required to perform a security function. Where guardian arrangements have the hallmarks of a standard tenancy (exclusive possession of a self-contained flat; landlord key never used; indefinite duration; market-rate payment), courts re-characterise the arrangement as a tenancy. A genuine guardian licence can be terminated on 28 days' notice without court proceedings.
ANUK Guardian Code of Practice
The ANUK Guardian Code of Practice (voluntary) sets minimum standards for member guardian companies: adequate heating; hot and cold water; working kitchen and bathroom; smoke alarms; CO alarms; minimum room sizes; written licence agreement; minimum 28 days' notice to vacate; guardian vetting (Right to Work; criminal record; references). Not all guardian companies are ANUK members — property owners should check membership before entering an arrangement. Local authorities may take enforcement action (improvement notices; prohibition orders) against guardian accommodation that fails to meet habitation standards.
Property owner duties — Occupiers' Liability and insurance
Guardians are lawful visitors under the Occupiers' Liability Act 1957 — the property owner owes a common duty of care to ensure the building is reasonably safe. Gas and electrical safety checks are best practice before guardian occupation. The property owner must notify their buildings insurer before placing guardians — change of use must be disclosed or the policy may be void. The Regulatory Reform (Fire Safety) Order 2005 applies — a written fire risk assessment is required. Some insurers offer guardian-specific endorsements.
Comparison with BTL letting and when guardianship makes sense
Property guardianship suits: large vacant commercial buildings (offices; schools; hospitals; warehouses) awaiting redevelopment; residential properties in short-term vacancy (6-24 months) where a BTL tenancy is inconvenient. For standard residential properties, BTL letting is almost always preferable: guardians pay sub-market licence fees (typically 30-60% of market rent); re-characterisation risk is higher in residential settings; guardian income is lower and less stable. After guardian vacation, a full check-out inspection should be carried out before any remediation works.