A recent enquirer with Prime Cap was keen to understand how our services might improve the rate of exchange and the ease of execution for payments related to the collection of sterling denominated rent on their London property, and the transmission of that rent to their US account, where they now live (and rent).
The enquirer currently banks with a reputable, if not venerable, UK based private bank, but, as is so often the case they had suspicions that the rate of exchange could be improved on the basis that the amount being transmitted was 'small', although regular.
When addressing matters of this type and without having delved any deeper with the enquirer than to establish the basic terms of the matter, we need to assume certain things, however, it is worth noting that the particulars of the collection of funds will generally determine the best way to maximise rate and process efficiency.
Is rent paid to you by an appointed managing agent?
If your tenant pays your rent to an agent managing your property then you are at liberty to instruct the agent to credit those pounds to whichever account you chose.
Prime Cap works directly with a number of managing agents who send GBP to their overseas landlords.
We work with them in a couple of ways.
1. If the landlord has stipulated that the GBP amount should simply be paid directly to their foreign currency account, then the agent can elect to instruct a currency broker like Prime Cap to facilitate the transmission.
In doing so, the agent is ensuring that the landlord receives as much as 5% more of the foreign currency amount than the landlord would receive were the agent to simply send an international sterling payment to them.
The agent is acting conscientiously and is ensuring that his client receives the optimum amount of foreign currency achievable.
Process wise, the client need do nothing as Prime Cap engages directly with the managing agent to receive the sterling and send the foreign currency amount onwards.
This is a particularly useful service for lettings and management businesses in the UK with a number of overseas landlords who just want to receive as much as they can, directly.
2. Prime Cap's partnering with managing and lettings agents as a third party 'preferred' broker means that it is the receiving client who elects, or not, to engage our services.
It is a referral structure, plain and simple.
The client receives the same high quality service, unparalleled rates and easy to use tools, and the managing agent has a trusted partner to present to their international and overseas customer(s).
Does the tenant pay directly to your GBP account?
If your tenant pays directly to your UK sterling bank account then, simply by advising them (the tenant) to pay funds to Prime Cap, you, as the landlord, can make use of the same expert private client offering that all our customers enjoy.
The tenant sends us the monthly amount either by standing order or by manual online payment. Their obligations do not change, only the bank account to which they are paying your rent does.
Prime Cap's accounts are fully segregated, which provides you with the comfort of FCA authorisation. On arrival of the monies we notify you and invite you either to manually exchange funds over our online transaction platform, or leave instruction with our broking team to exchange and credit funds immediately to you.
Both processes benefit from the same compelling rates of exchange.
Do you have a standing order to send a set GBP amount to your overseas account?
As above, collecting your rent in to your UK sterling account leaves you at the mercy of your bank when it comes to the rate of exchange used for the conversion of your funds.
All private clients are welcome to set up a standing order to credit Prime Cap's GBP segregated client account on a monthly basis and on the understanding that Prime Cap's team will exchange funds at the optimum rate and as rapidly as possible.
You simply receive the appropriate statements and confirmations detailing the rate achieved and the date on which funds will clear with you abroad.
Do you convert all the rent on a monthly basis, or only enough to cover your foreign currency expenses?
Whether you chose to send the full rental income to us or not, we can buy the foreign currency amount you need and hold or return any excess.
A changing rate of exchange means that month-by-month the foreign currency equivalent of the GBP you receive will vary.