The Advanced Rent Option allows landlords to receive up to a year's rent in a single payment. Here's how it works and who it's suitable for.
The Advanced Rent Option (ARO) is one of the most flexible financial tools available to UK landlords, yet relatively few property owners are aware it exists. This guide explains exactly how ARO works and whether it might be right for your situation.
What is the Advanced Rent Option?
ARO is a service where a property management company agrees to pay you multiple months of rent in advance — typically 6 to 12 months — in a single lump sum payment. The management company then lets and manages your property during that period, recouping their advance through tenant rents collected.
Why would you want rent in advance?
There are many reasons landlords find ARO valuable. You may need capital to renovate another property, fund a tax bill, make a new investment, reduce your mortgage or cover unexpected expenses. Rather than taking out a loan at commercial interest rates, ARO gives you access to your future rental income now, at no extra cost.
What does it actually cost?
This is the part that surprises most landlords: done properly, ARO costs nothing extra. The management company provides the advance from their own working capital and recouped through tenant rents. You receive the agreed rental value for your property — no loan, no interest, no repayment schedule.
What are the conditions?
Participating in an ARO typically means agreeing to a fixed management period, usually the same length as the advance period. The management company takes on full responsibility for the property during this time, finding and managing tenants.
Is it right for you?
ARO is excellent if you need capital now and are comfortable with a management company handling your property for a defined period. It's less suitable if you prefer to self-manage or need flexibility to sell the property in the short term.
Speak to Arete Lettings on 01268 944120 to understand exactly what ARO could deliver for your property.