Fears over the upcoming Renters’ Rights Bill are reportedly prompting some landlords to lease properties to asylum seekers instead of private tenants.

Paul Shamplina, founder of Landlord Action, told the i newspaper that landlords are increasingly striking deals with Serco, attracted by guaranteed rent and no maintenance responsibilities.

“The offer, for a landlord, is very attractive. There is guaranteed rent over a long period with no voids and no rent arrears. They don’t have to be self-managed. These leases fall outside of the Renters’ Rights Bill…Landlord confidence is at an all-time low and everyone is feeling the squeeze,” Shamplina said.

Some landlords, however, choose not to participate due to ethical concerns or a desire to maintain rental stock for students, professionals, and local tenants.

“It’s also politically sensitive, it’s a hot potato. The policy is decided by the government. Landlords have to make their own mind up whether it suits them,” he added.

Shamplina also cautioned that landlords considering asylum seeker contracts should read lease agreements carefully.

“With long contracts, some landlords have found their properties left in poor condition. You need to look at repairing clauses, liabilities, notice periods, and break clauses. Contracts need to be looked at in detail. I would recommend getting independent advice. You’re effectively sub-letting, so make sure your mortgage dealer and insurance arrangements are appropriate.”

“Too Good to Be True?”

Wendy Whittaker-Large, from the HMO Action Group, says five-year contracts with guaranteed rent are becoming increasingly attractive to landlords amid Renters’ Rights Bill concerns.

“There will be longer periods without any rent when there’s a problem with a tenant. So when an email comes from Serco or other operators, these guaranteed contracts start to look appealing.”

Shamplina warned against believing social media claims of easy profits: “If anything sounds too good to be true, it might be too good to be true. This asylum seeker housing arrangement is not a get-rich-quick scheme. Property is a business, not a hobby.”

Landlords “Fed Up”

As previously reported by Property118, Paul Cunningham, chairman of the Eastern Landlords Association, echoed these concerns: “Landlords are completely fed up with the council…an option for them is to go down the Serco route. The level of interest from landlords has been phenomenal, but it will mean a loss of properties for local people.”

Cunningham emphasises that participation is voluntary, with landlords making their own decisions on whether such arrangements suit their business.