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Advanced Rent Option (ARO)
We are delighted to offer our Landlords the option of taking a full years rent in advance.
Do you want one years rent paid now in advance?
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
The ARO includes a Landlord Rent Guarantee, so if 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. Like other landlord rent guarantees on the market the ARO’s doesn’t cover voids.
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. N/B – During the time in which we are finding you a new tenant the ARO tenancy is put on pause, so you won’t be asked to pay back the outstanding ARO funds, as they will be collected from the replacement tenant on the new ARO tenancy. You can switch to receiving your rent monthly instead of upfront if you wish, as soon as the remaining ARO funds have been collected.
Alternatively, if there is rent outstanding and you decide to go in another direction with your property (eg. sell), you will be liable to refund the portion of outstanding advanced rent.
ARO ILLUSTRATION
Example only, costs may vary
Rent @ £1,200 per Month x 12 | £14,400.00 |
LESS | |
ARO Tenancy Set Up & Referencing | £480.00 |
Management cost and Landlord Rent Guarantee | £2,880.00 |
Maintenance Float for Management | £350.00 |
NET PAYMENT AVAILABLE TO LANDLORD | £10,690.00 |
Note: A maintenance float between £250-£750 is required to be held on account for ARO tenancies, incase of emergency maintenance works. Floats are to be replenished on renewal or refunded if an ARO is not renewed.
If you are interested in the ARO please contact us on 01733 346255 or peterborough@justlets.com and one of our advisers will be happy to help with your personalised illustration.
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