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11:05 AM, 4th November 2022, About 2 years ago 31
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Hello everyone, I’ve just had a reply from Serco regarding their offer to take a properties to be used by the Home Office for asylum seeker use….
I welcome any comments good or bad – what do you think of this? What other questions do you have? Pitfalls?
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Thank you for your enquiry to Serco.
Serco currently operates the Asylum Accommodation Support Contract (AASC) within the North West of England, East of England and Midlands and are looking to expand our portfolio within these areas.
Our business model supports Investors, Landlords and Agents in the drive to return a profitable yield, within a legal and ethical framework which can only benefit both the occupier and landlord.
What we can offer:
A 7-year lease with an FSE 250 company, with an option to renew
Blue Chip Tenants
Day-to-day maintenance and repairs undertaken at no cost to the landlord
Guaranteed Rent (paid monthly by BACS when you hand over the keys)
Monthly property inspections
Council Tax and utilities paid
No void properties
No Management Fees. No Legal fees. No registration fees. No set-up fees
No rent arrears or debt collection
No Call outs payments to contractors
Full HMO Management
Administration of licenses and certification administered by our team of experts
All our properties are managed by in-house Housing and Maintenance Officers, supported by a team of administrators.
Properties must be vacant.
Our demand is for 1, 2 and 3 bedroom family property and 4+ bedroom HMO’s and at present there is no cap on the number we wish to acquire.
Each property offered to Serco is required to go through a due diligence with the Local Authority (LA) and the Local Police, called a Property Post Code Consultation (PCC). This is to ensure the property is fit for purpose and safe. This process takes between 2 days to 2 weeks.
Once the property is approved by the LA, a Property Negotiator will be assigned as your account manager, who will carry out an initial inspection to scope out the property, a work schedule will be drawn up and a letter of intent shared. Once you have the brought the property to the necessary standard the Property Negotiator will revisit and sign off the property and a Lease will be issued.
I have attached a draft copy of the Lease and the property standards as well as some FAQ’s for your perusal.
The key points of the Lease are below.
CERTIFICATION AND LICENCING
• Certification – Serco to undertake. LL to be recharged
• HMO License – Serco to undertake. LL to be recharged
• Selective Licence – Landlord to undertake and fund
BREAK CLAUSE
· Serco must give 2 months’ notice to LL
· LL must give 6 months’ notice to Serco
LANDLORD OBLIGATIONS – IF REQUESTED TO DO SO
Year 4 of Contractual Term and every 3 years thereafter
Floor covering replacement
Full decoration of the Property
Replacement of inventory (the latter being where applicable) in the fourth year of the Contractual Term and every 3 years thereafter
Year 6 of Contractual Term
New kitchen, new bathroom
Replacement windows
Repair/replacement to boundary markers
Year 7 of the Contractual Term
External decorations including gutters; facias, soffits, rendering and doors
BOILER
· Replacement of the boiler following 2 or more repairs over 3 months or a repair bill of more than £500
· replace the boiler if 3 or more repairs to the boiler over a 6 month period and/or expenditure of £500 or above in a rolling 6 month period.
RENT
To be paid by BACs, 2 months in arrears
INSURANCE
LL to insure, insurance policy to note use for Asylum Seekers.
ASSIGNMENT
Serco is permitted to assign to other group companies and to any company taking over the Compass Contract without further consent of the LL;
NOVATION = ALLOWED TO PASS ON LEASE (SIMILAR TO ASSIGNMENT)
Serco is allowed to transfer the Lease to the Home Office or another company nominated by the Home Office (i.e. if Serco’s contract ends, the Lease will continue and we have the choice to pass it on to the HO/new Provider. This is good for Serco and also for LLs, as the lease (their income will continue)
REPAIR & MAINTENANCE (SCHEDULE 1) – SERCO
Serco takes on the repair and maintenance obligations (non-structural). Structural and Latent defects are the responsibility of the Landlord
SCHEDULE OF CONDITION. A photographic record of the property at the start needs to be attached to the Lease.
DSR
Previous Article
Have you been suffering from rent arrears?
RC-HMO
14:11 PM, 4th November 2022, About 2 years ago
HMOs at the bottom end of the market will get trashed anyway, bills are through roof in HMOs & tenants are a pain. LHA rates paid from SERCO are in my opinion a good bet. This would of course depend what you paid from the property and what rent you currently achieve. There is very healthy market in buying & refurbing HMOs to LA standards and renting on a 7 year lease.
Serco - Hard working to deal with though..
A balanced portfolio with a few of these would be a good bet no ?
LaLo
14:37 PM, 4th November 2022, About 2 years ago
It’s not for me!
Helen
18:54 PM, 4th November 2022, About 2 years ago
My Buy to Let Mortgage companies would not allow this and neither would the insurance companies I use. For that reason alone it is a no go. Not sure which properties would qualify, nor who would be interested in renting to them. They need to use Council properties.
Reluctant Landlord
19:30 PM, 4th November 2022, About 2 years ago
well, the majority of the comments only serve to raise the same questions I did when I got the email!
The email had a draft of the agreement between the property owner and Serco but I had no way of attaching this.
If you thought what I posted was imposing on the owner...the contract reads worse.
I'm not going near this, but I was curious to try and ascertain from my insurers what the premium would be for my properties if I moved them to cover 'asylum seekers'. The agent replied my current cover would not allow it and advised very few would. I asked her to find out what the cost would be from one of the few companies who would insure the houses, I'll update this thread when I get a reply back!
Chris H
23:01 PM, 4th November 2022, About 2 years ago
Simply from the start, the fact the contact is so one sided, it is a simple no!
Also as above, no way my insuranace or lenders would allow, then in my private experience while workign for an la, serco have an amazingly high standard... of being poor on their best day, run away.... only people with big proerties, that want to gamble would take such a risk
Blodwyn
10:10 AM, 5th November 2022, About 2 years ago
Blue Chip = asylum seeker?
What if application fails, what next? Who pays for property repairs if trashed?
Repeated renovations, redecorations etc.? What dreamland do the drafters of these Ts & Cs live in?
No thank you.
Dylan Morris
10:40 AM, 5th November 2022, About 2 years ago
Anybody signing up with Serco needs to be aware that their property is being turned into an “asylum centre”. There will be many “refugees”(illegal economic migrants) passing through. Imagine the annoyance to neighbours with these people playing football in the street, parties in the back garden. Very soon the neighbours will move and the area will go downhill affecting your investment. With no stake in the property, no obligation to pay rent or a deposit it will be quickly trashed. Other landlords unable to attract tenants will have to do the same. Even owner occupiers will have to do it as they will be unable to sell. Property values will collapse. I urge everybody to think very carefully.
Accommodation Provider
12:04 PM, 5th November 2022, About 2 years ago
I am a lawyer and strongly warn you not to do this. Serco have deep pockets to sue you and will do that as they will force you to rebuild your house every three years after asylum seekers have destroyed it. Go buy your own houses Serco. Serco should not be getting our tax money anyway. Every asylum seeker costs 100k per year. Government must stop 200k per year coming in. Help them where they are from. Far cheaper.
Gary BTLowner
12:24 PM, 5th November 2022, About 2 years ago
Reply to the comment left by Tom Kirkwood at 04/11/2022 - 11:52
Don`t touch it with a bargepole! Blue chip tenants? Are they crazy.
KeirD
15:04 PM, 5th November 2022, About 2 years ago
Which lenders accept asylum seekers in their criteria and accept a 7 yr agreement ?
Doubt it would be many.
I'm glad I read this posts comments before deciding to place a property with serco.