1. What is the Primary Tenancy and how does it work?

The Primary tenancy is a rent to rent business model which has been used since 2008. It enables ARO to pay the Landlord their market rent upfront annually, minus charges while collecting rent back monthly from the tenant in the property. 

This is made possible through ARO becoming the head-landlords primary tenant and the named landlord on the tenancy agreement for the tenant in the property. The local partner agent remains the managing agent for the head-landlord ARO and tenant in situ.

2. How are partner agents and landlords paid? 

ARO pays both the landlord's upfront rent and partner agent's fee upfront for the year within three working days of the tenant signing the tenancy agreement and paying their move-in balance.

3. What happens if the tenant stops paying, do you have a valid landlord rent guarantee which covers the pandemic?

Yes, we have an optional Landlord Rent Guarantee, which allows us to guarantee the rent for up to 12 months as long as the tenant remains in the property. This is available for 3.75% of the annual rent. ARO pays 20% commission to partners on any sold. 

4. Can partner agents use their own Landlord Rent Guarantee?

Yes, but only providing the insurance provider will cover the Primary tenancy business model, in which ARO are the named professional landlord on the tenancy agreement.

5. Can partner agents use their existing referencing agency for ARO deals instead of the recommended agency Blinc ref?

Yes, as long as they are a reputable referencing company who offer a full professional referencing check. If your referencing provider is not already one of our approved providers, we will check to approve it during your onboarding week.

6. What costs are involved in the ARO membership?

There are 3 monthly membership options (all are local licenses, based on a 12 month term):

1. Non-exclusive: £200+vat

2. Dual exclusive (share with 1 other local agent): £300+vat

3. Exclusive (exclude up-to 15 local competitors): £500+vat

The only other cost is when you have a deal ready to move in the ARO take 7.5% of the year's rent to fund an ARO .

7. How should partner agents price the ARO for landlords?

The cost of the ARO to the landlord is up to the partner agent. It has been successfully sold for between 18% to 21% flat to date (equivalent to 15%+vat - 17.5%+vat). 

The ARO has the potential to bring in infinitely more value than its costs, as it allows the partner to meet and speak with far more Landlords.

When effectively promoted it has proved to be the most powerful landlord prospecting and acquisition tool ever conceived.

ARO is currently available to approximately 1% of Agents and is subject to an application process, preference is being given to small independent market leaders but any legitimate agent is invited to apply.