Say hello to ARO...
...or to give it its full title the Advanced Rent Option, whereby Butler & Stag will not only pay landlords one full year’s rent in advance, they’ll also take away all the hassle of letting out a property.
Investors and landlords are viewing their investments somewhat differently these days, and that’s all thanks to the Advanced Rent Option, better known as ARO. It’s a huge game changer for anyone with a buy-tolet property as it offers landlords the ultimate in terms of peace of mind, convenience and financial freedom.
How it works
As a member of the ARO network, Butler & Stag has access to the network’s proprietary Primary Tenancy business model, whereby we will act as the landlord’s tenant, essentially sub-letting to the incoming or incumbent tenant. This enables us to pay landlords 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 all other respects, the ARO is similar to our conventional Full Management Service.
Assuming there is not already a tenant in the property, Butler & Stag will find a quality, professionally-referenced tenant. Prior to the tenant moving in, we will ensure that the property is fully compliant and will carry out all normal duties as the managing agent during the tenancy. In the case of a new tenancy, funds will be transferred, less agreed fees, once the tenant has moved in and paid the first month’s rent.
If a tenant is already in the property, funds will be transferred once checks have been completed, a new 12-month tenancy has been established and the first month’s rent has been received.
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 LESSDiscounted 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
ILLUSTRATION ONLY
Landlord Rent Guarantee
The ARO, like Butler & Stag’s conventional Full Management Service, is available with or without a rent guarantee. If a landlord chooses not to have the rent guarantee and the residing tenant fails to pay the full 12 months’ rent, then they are liable to repay the balance or we can collect it back from the new tenant at our discretion.
If, however, a landlord chooses our Landlord Rent Guarantee and the residing tenant doesn’t pay their rent, they will not be liable to repay us the amount not collected, unless the tenant leaves the property during the contract period.
In this event we would normally re-let the 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 the landlord decides to go in another direction with their property, they must refund the portion of outstanding advanced rent.
What Landlords are saying:
Robert W
‘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.’
Lauren E
‘I used the cash from the ARO to pay off my credit card bill and cover some refurbishment costs on my new house.’
Chris H
'I used the upfront money from the ARO as a deposit for my next buy to let property in Manchester.’
Emily A
‘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.’
Use our simple
Rent in Advance online calculator to find out the lump sum you could be entitled to...
butlerandstag.co.uk | 01992 667 666
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