Serco contract details – Asylum accommodation request?

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

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