A review of the use of local authority property by third-parties which suggests that few councils have developed robust arrangements for dealing with third-party occupation. Argues that if local authorities are to avoid entering into arrangements which will be to the detriment of their portfolio they need to consider formalising third-party arrangements, charging open market rents where possible, the incorporation capital expenditure into agreements, co-ordination of all agreements within each authority, the nature of the agreements based on the period and extent of occupation, separating property agreements from wider service agreements, incorporated the total cost of occupancy into agreements, the involvement of individuals with property expertise in negotiations, and that third-party arrangements do not unduly impact the authorities future flexibility. View at www.rics.org.