What is the advanced rent option (ARO) ?
ARO is our normal quality full Management service with the additional benefit of including a years rent upfront. ARO is available for new and existing tenancies provided the property is compliant and the tenants pass a professional referencing check.
The ARO is changing the way investors and landlords are looking at their investments and is a huge game changer for anyone with a buy-to-let property. ARO offers Landlords the ultimate in terms of peace of mind, convenience and financial freedom.
How it Works
As a member of the ARO network, we use their proprietary Primary Tenancy™ business model to pay you a year’s rent in advance, less our standard fees and charges. The rent is then collected monthly from the tenants in the property. Practically speaking and in other respects the ARO is similar to our conventional Full Management Service.
Assuming there is not already a tenant in residence, we will find you a quality tenant. Prior to move in we will ensure that the property is fully compliant and the tenant is professionally referenced and during the tenancy we will carry out all our normal duties as your managing agent. In the case of a new tenancy we will transfer your funds less our agreed fees once the tenant has moved in and paid their first months rent. If you already have a tenant we will transfer your funds once we have completed our checks, established a new 12 month tenancy and received the first months rent.
Landlord Rent Guarantee
ARO, like any conventional full Management service, is available with or without a rent guarantee. If you choose not to have the rent guarantee and the residing tenant does not pay the full 12 months rent then you would be liable to repay the balance, or, we can collect it back from a new tenant at our discretion. If you choose our Landlord Rent Guarantee and the residing tenant doesn’t pay their rent you will not be liable to repay us the amount not collected, unless the tenant leaves the property and there is a void. In this event, where the tenant leaves during the twelve month contract, we would normally re-let your property with a new ARO for the new tenancy, minus the rent portion not paid back by the previous tenant on the original ARO tenancy. Alternatively, if there is rent outstanding and you decide to go in another direction with your property, you will be liable to refund the portion of outstanding advanced rent.
Illustration
A simple illustration based on a £600 per month rent for a new tenancy, including the optional Landlord Rent Guarantee :
- Rent @ £600 per month over 12 months = £7,200.00
Minus the following costs:
- Set up fees for new tenancy: £420.00 inc VAT.
- Management Fees and Landlord Rent Guarantee (equivalent to 15% + VAT) £1,296.00
- Float for maintenance works : £350.00*
NET PAYMENT AVAILABLE TO LANDLORD: £5,134.00
* (A fully managed property does require a maintenance float for emergency works)
Interested in our Advanced Rent Option?
To discuss our advanced rent option, please fill in the form below and one of our agents will contact you to discuss how we can help you unlock your first year’s rental income.