Advanced Rent Scheme Update – 6 months rent up frontMake Text Bigger
In my article introducing Advanced Rent Limited I outlined their innovative solution to remove risk to Landlords by enabling them to bank their next six months rent today.
Advanced Rent Limited have since updated me on how Property 118 subscribers have been getting on with the service – which acts as a a hybrid between a rent collection agency, a letting agency, an insurance company and a bank.
As a direct result of my article Advanced Rent Limited have reported receipt of enquiries to advance rent on over 1000 properties !
The feedback from different users emphasises how a variety of aspects of the service have benefited them. This comes as no surprise as the service was developed to appeal to landlords at every stage.
First time landlords signed up in the knowledge that the risk of non payment is removed, and are assured that the comprehensive tenant vetting and referencing will be thorough. Advanced Rent work in partnership with landlords to ensure great tenants – and, ultimately, to protect their own risk. For the standard 12.5% fee they provide a service comparable to a managing agents standard terms – and also pay the rent up front.
Landlords with multiple properties received a bespoke package which, dependent on the length of the tenancy remaining, sometimes resulting in more than the standard six months rent being advanced. It is the level of customer care – both to landlords and tenants – that has resonated with these busy landlords. They are reassured by no longer being the point of contact when, for example, the boiler goes wrong – and in any case this will be covered by Advanced Rent zero excess insurance policy. Other aspects of the service that have been praised are the removal of Landlord’s tasks such as the need to check bank accounts for rental income and pursue late or, in the worse case, non payers.
For larger landlords (they received several enquiries from landlords with 30 plus properties) they found that the Advanced Rent service removes tranches of administration. Advances already made have allowed for the purchase of additional properties or the refurbishment of the portfolio without the need to use personal cash.
The service can be summarised by:
- If a property is empty Advanced Rent can assist with tenant search, reference the tenants and provide contracts. If an existing tenacy is in place they just need a copy the tenancy agreement and other standard details
- Advanced Rent Limited pay the landlord six months rent up front – the tenant pays the rent monthly to Advanced Rent Limited
- If tenants don’t pay, Advanced Rent Limited accept that as their risk and their potential loss.
- Tenants are issued with an emergency telephone number by Advanced Rent Limited so that landlords need not be contacted by tenants in the event of an emergency such as a lost key, faulty boiler, burst pipe etc. The cost of emergency repairs are insured by Advanced Rent Limited.
- The Advanced Rent service includes support to deal with any maintenance issues – they access a nationwide network of tradespeople that can carry out the work once the quote is approved.
Advanced rent are introducing a further service for landlords who do not require six months rent to be paid to them up-front. Their 6% fee for this service, with no administration or set up costs, must be worrying other companies in the rent guarantee space.
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