With the number of renters in arrears having increased to around 80,000 since the start of the pandemic; landlords are now demanding in excess of £10,000 rent in advance from tenants in a bid to counteract the likelihood of potential future turmoil. With demoralised tenants increasingly being turned away by fearful landlords, coupled with the abundance of legislative changes the PRS is currently facing; more and more landlords are now accepting the inevitable reality that the need for professional property management has never been greater. ARO (The Advanced Rent Option) offers benefits to both agents and landlords, with the potential to stabilise the market through these turbulent times. Here’s everything you need to know about this unique market offering currently making the headlines…
ARO: The Advanced Rent Option for Agents
Letting agents can apply for an ARO membership, which then allows them to easily offer all their landlords a year’s worth of rent upfront; funded by ARO. Membership is not available to all agents as there are certain criteria that must be met (with preference currently being given to the smaller, independent market leaders). All applications however are reportedly welcome.
What are the advantages of ARO for agents?
Research has indicated so far, that given the choice; most landlords would prefer to receive their rent a year in advance in one lump sum. There are multiple reasons for this. Some like the stability it affords; and others simply enjoy the money to use on other things.
It’s a competitive market out there; and ARO seems to be proving a unique way to win new landlord business, giving member agents an edge over their competition. With licensed agents having the unique ability to advertise and deliver a year’s rent upfront to their landlords; it essentially becomes a tool (with huge lead generation potential) to attract and retain more landlords, helping of course, in turn, to build a larger portfolio.
ARO: The Advanced Rent Option for Landlords
If you are a landlord, then you might be interested to know that ARO is also a quality full Management and tenant finding service with the additional benefit of being able to take a year’s worth of rent in advance at no extra cost (minus standard fees). ARO is available for new and existing tenancies provided your property is compliant and the tenants pass normal referencing checks.
This exclusive service also provides landlords with a simple and stress-free alternative to a rent-guarantee – guaranteeing to pay your rent for up to a year if your tenant doesn’t – and covering any issues relating to the pandemic (without the need to take out insurance). If you are a landlord looking for the security of a full year’s rent in advance; then you can find out more about the full benefits here and calculate what you could get here.
Let us Assist you
Assist Inventories work with letting agents and landlords of all sizes, as well as housing associations, councils, and property developers. So if your postcode is within the M25 and you are looking for property inventory services for a buy-to-let or investment property then talk to us today. Are you a letting agent? You can get your hands on a discounted price list here.