Updating post from Reddit.
I'm a landlord who recently took on an HMO which has been one issue after another so far. In short, the individual who sold to me lied about the costs against the property and the yield. I'm now looking at having to increase rents substantially to meet market rates which will no doubt cause a huge amount of fuss with the existing tenants. I would never normally like to raise rents during tenancies but I don't feel I have much choice. It's hardly breaking even right now.
Anyway, I've got the opportunity to work with Clearspring on a social housing migrant contract and get a very good yield out of the property for doing so.
I don't know how this sits with me morally. To be honest, I feel uncomfortable renting to migrants when so may UK citizens don't have housing. But equally feel a lot of these people are escaping war and poverty. Equally, I'm sure the people locally on the road probably wouldn't be too happy once they realise.
I've also heard a few negative stories regarding these migrant housing contracts and them going south for landlords.
Would be good to get some insight from other landlords and maybe people who have done these migrant contracts before?
Join landlords uk if not Already done so, although most people talk about serco.. not heard of this one, to be honest alot of the reviews are negative. Around treatment of your property, I’m not sure why.
Have you checked your insurance? A lot of people mention insurance being an issue with the issuance companies, not being happy.
Thanks! Is this landlords UK on Reddit you’re referring to or a group somewhere else?
Would also like to know
The counter moral argument is that currently a lot of migrants are living in expensive taxpayer funded hotels.
By moving into a hmo or similar, this reduces on the cost to the general public and frees up funds for healthcare and schools etc.
Not used clearsprings or similar but there are lots of housing charities that need properties too.
Very true! Good to get other perspectives, thanks
The higher rent often comes with a bigger headache.
The pragmatic argument is, this is apparently more profitable, but nothing is truly 'free'. The reason they are paying you more is because you're taking on more risk.
Very true, I do know a few people who do it and rate it really highly
I literally spoke to Serco and tried to get some information in terms of yields etc but they wouldn’t give me any information.
I was told they don’t pay market rates and I should look into clearspring. I haven’t bothered to call them because I thought it would be a waste of time, do you perhaps have any information regarding yields to see if it’s worthwhile getting in contact?
Interesting, I’d have thought they all pay the same. Maybe because Clearspring deal with an area of the country which has less of this kind of housing stock available?
I would advise that you find an experienced landlord to hold your hand for a few years. I’m very alarmed to hear that you didn’t verify the finances of an asset when you bought it. This type of thinking will likely spill over into other areas if not addressed.
Literally not what I asked but thanks