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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.

What is the Advanced Rent Option (ARO)

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.

How it works

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.

Landlord Rent Guarantee

ILLUSTRATION

A simple illustration based on a £1200 per month rent for a new tenancy, including the optional Landlord Rent Guarantee (A fully managed property does require a maintenance float for emergency works):

  • Rent @ £1200 per month - 12 months rent = £14400.00 LESS
  • Discounted rent (equivalent to standard fees): £2592.00
  • Set up fees for new tenancy (approx): £499.00
  • Landlord Rent Guarantee 3.75%: £540.00
  • Float for management: £450.00
  • NET PAYMENT AVAILABLE TO LANDLORD: £10,319.00
Costs

What costs are involved?

  • Rent @ £1200 per month - 12 months rent = £14400.00 LESS
  • Discounted rent (equivalent to standard fees): £2592.00
  • Set up fees for new tenancy (approx): £499.00
  • Landlord Rent Guarantee 3.75%: £540.00
  • Float for management: £450.00
  • NET PAYMENT AVAILABLE TO LANDLORD: £10,319.00

We decided to go for ARO as it gave us a lot more peace of mind to get our rent up front for the year rather than monthly.

I used the cash from the ARO to pay off my credit card bill and cover some refurbishment costs on my new house.

I used the upfront money from the ARO as a deposit for my next buy to let property in Manchester.

When we heard about ARO we liked it but first we asked several agents if they did something similar and no one did, it really is a unique offer and so useful

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