A new scheme will aim to offer landlords more financial freedom to expand their property portfolio or make an alternative investment when it launches later this month.
Choices Estate Agents will introduce a new Advanced Rent Option (ARO) product next week, which enables landlords to receive their annual rent upfront in one lump sum, minus standard letting agency fees.
Buy-to-let landlords, property investors and letting professionals are being invited to learn more about the initiative by attending an exclusive free launch event in London for the innovative ARO.
Speakers include Charlie Bryant, managing director of Zoopla, letting industry commentator Christopher Watkin and owner of Choices Estate Agents, Simon Shinerock.
The exclusive event is taking place at the Royal Institution of Great Britain on Wednesday 28th August between 6.30pm and 9.30pm.
Shinerock said: “Lots of landlords and interested parties have already signed up to attend the event and the remaining number of spaces is limited.
“This valuable event will encourage lots of debate, discussion and networking from passionate industry insiders. There will be opportunities to discuss the future of the rental market and of course to learn more about the ARO and how we’re trying to help landlords thrive in challenging conditions.”
Based on a property with a rental price of £1,200 per month, landlords could receive an upfront lump sum of £10,231 by signing up to ARO.
This final figure is calculated by discounting standard annual agent fees costs of £2,592, new tenancy setup fees of £395, a rent guarantee of £432 and an emergency maintenance float of £750 from the total annual rent of £14,400.
Shinerock commented: “The ARO provides landlords with a great opportunity to improve their cashflow.
“As we can see, for landlords letting an average property the ARO could help to pay for a holiday, with plenty of money left over to put towards an additional property purchase or paying off buy-to-let mortgage payments.”
Any landlord who wants to benefit from the ARO but already has a tenant in-situ can simply instruct Choices or any of their associated brands to carry out some background checks and re-reference the tenant, before signing an agreement with the agency.
Alternatively, Choices or its partners can manage properties with sitting tenants until the tenancy is over, before implementing the ARO for a new tenancy.
One of the key benefits of the ARO is that it is not a loan, which means it does not depend on a landlord’s credit rating and there is no complicated extra paperwork to complete.
Shinerock added: “Rental market conditions have been tricky for some time now and we want to provide landlords with a straight-forward way to wrestle back control of their finances.
“The cost of letting a property is likely to keep on rising, while the private rented sector will only become more regulated. With this in mind, landlords can benefit from receiving their rent upfront and start planning their future investment strategy accordingly.”