UK Landlord Forum / Life

I'm seriously considering leasing house to Serco on seven year lease. Guaranteed good rent, repairs and admin brothers - just insurance to sort. Used for asylum seekers. It takes away any responsibility re landlord legislation and rules but pays a rent. Any views or experience by others please.

Well, it's not for me - personally - as it's almost totally hands-off. But if you don't have a personal level of enthusiasm for being a Landlord then maybe it will work for you? It's just a cold, hard investment and income stream for you. I suspect you'd have to get specialised insurance (as most policies mention not to let to asylum seekers, or it being a half-way house or suchlike) but I'm sure a Broker could assist with that. What I genuinely like about being a Landlord (when it's going well) is knowing that I am offering good people a good home at a fair price - and that I'm much more responsive than any company, or Agent, would probably be. I have actually been told I am a good Landlord by Tenants. You don't say if this is one of your properties, or your sole property... but that possibly has some influence too.

I've also been told I have no business in being a Landlord, but he was an obnoxious, prissy prick I was glad to see the back of.

Anyway, my point... was there one?... is that guaranteed good rent is the key, right? After seven years you'd fully expect to go in and do major works anyway, so even if their repairs / cleaning aren't up to your standard, does it really matter as long as the property still stands? Effectively you're off-the-hook for seven years and will come back to it (obviously you might renew) with a wedge you've saved up in anticipation of it needing work.

Who are the Admin. Brothers?

Quote from: Hippogriff on June 26, 2023, 07:19:56 AM
Who are the Admin. Brothers?

I think they might be those nice chaps who deal with all the admin bothers.

Lovely guys and definitely not "obnoxious, prissy pricks".

(thank you for that phrase HG; tucked away for future use).

Two of my properties have been let to a charity that houses vulnerable adults with learning difficulties.They carefully vet the people,who have usually been living with parents previously.One  reclusive tenant with autism was there for many years,before he needed more help than his carer could give. Both properties have been regularly recarpeted and painted,and when new heating was needed I fully expected to pay,but they picked up the bill and arranged a day out for the couple living there while work was carried out. I still maintain control,and there is a modified 12 month AST.in place for both. I had serious misgivings at first,but it has turned out well.

I don't think I would be so keen to sign up for 7 years,given that the term "asylum seekers" is rather vague.Many are in desperate need and should be helped,others I am less sure sure about.You would need to have a thick skin if troubles arose.

Thank you for replying and note no negatives which is a plus. We have a regency block of 7 s/c flats and 2 2bed terraced. This house has attracted grief from day one. Latest tenant just left , only owed one month but the junk left behind cost £800 to clear then £250 for deep clean. A 5 week deposit in no way covers plus w machine  kaput fridge freezer frozen solid with food in and door buggered so an extra £600 there. We have rented fir 27 years and loved it but now have possibly morphed into victor meldrews. We're 68 and can't do what we used to do. Get on really well with long term tenants in flats 🤞. Serco say they do all maintenance , deal with tenants and at end of 6 years will replace flooring, white goods, new windows and doors . Sounds too good a deal and no headaches or high blood pressure . Maybe insurance is more than rent 😂😂😂😂

Quote from: judi3434 on June 26, 2023, 11:43:59 AMSerco say they do all maintenance , deal with tenants and at end of 6 years will replace flooring, white goods, new windows and doors. Sounds too good a deal and no headaches or high blood pressure.

That does sound a good deal.

Just one thing I'd check... what would Serco's position be if the anticipated minimum EPC rating of C was brought in, eventually for existing tenancies? I'm assuming that your flats aren't currently EPC C. Who would be liable for the upgrades?

It may not be an issue and it's still some years down the line - but it's something to consider.

You may not want to alert Serco to this, so a careful reading of their contractual small print might be the best thing to do.

I have had to pay higher insurance on the 2 charity rentals,but not greatly more.Your situation could be considered much higher risk. On the face of it given what you say I would be inclined to accept their offer.

Changes to minimum EPC ratings aren't currently being proposed by anyone. And the current minimum's wouldn't apply to temporary accommodation for asylum seekers.

That's another reason that could make the idea more attractive!

It might be worth having a google for landlord's experiences with Serco.
And note that these asylum seeker deals are quite new and recent. Very few landlords have any experience of getting a property back.

@Judi, did you finally lease your property to Serco? I am keen to know as I am considering it myself.

Potential issues with these deals are:
They're new, so no one's had their property back yet. The condition its returned in could make a big difference to the overall return, so possibly best to factor in a complete refurb when doing the sums.
If your property is mortgaged, this is probably outside the terms and conditions.
If your property is a flat, it might break the terms of your lease.
I'd be very wary of letting to a company using their lease document unless you get it checked by a solicitor independently.
Any neighbours are likely to be negative.