How Upfront Rent Works
Imagine never having to worry about your tenant paying next month’s renter. As an investment property owner, you may have thought about using a property management company to help boost ROI. Sure, you know that property management companies can help you get and keep tenants in your rental properties. But how many can provide an owner with all 12 months’ rent upfront on the first week of the lease? Today, we’ll cover a unique value that The Realty Medics offer their clients by explaining how upfront rent works.
Three Rules to Participate
Participation in the program is completely optional. Owners who sign a new rental home with The Realty Medics will automatically get an invitation to join the program. Owners with existing property managed by The Realty Medics also can participate. Roughly a month before the annual renewal, owners will receive an invitation to join the program for the upcoming year.
Some owners have asked about the ‘catch’ to this program. Spoiler: there isn’t one, but we do have three rules for participating:
- No Selling or Refinancing
Owners who sign up for the program agree not to sell the rental property during the 12-month period.
- Maintain Property Manager
The Realty Medics must serve as the property manager for the rental during the 12-month period.
- Complete Required Repairs
Owners must complete maintenance and repairs to the rental property during the 12-month period to ensure renter safety and comfort.
Fees and Funding
The Realty Medics charge a percentage fee for providing the funds upfront, based on a sliding scale. However, the fee will only amount to 10% of the rent returns. Owners who have multiple properties participating in the program will see their per-property fee lower.
The upfront rent program isn’t a loan and doesn’t require any financial obligations or applications. However, the owner will still be responsible for any required repairs on the house during the 12-month period and beyond.
In addition, existing owners cannot have had any insufficient fund charges in the last year or late payments past five days.
But What About…
It doesn’t matter whether a tenant doesn’t pay, gets evicted, or leaves early. Owners who opt into the program receive the full amount.
If you have additional questions or would like to learn more, contact our team at 321-947-7653 or by using our online form.