Total Funded:
€31.998.317
Average Return:
6,1%*
Rendity
Rendity is a real estate lending & property share investment platform that allows users to lend to & invest in real estate primarily in Vienna, the capital of Austria. The platform has also recently opened up for property in Berlin, the capital of Germany. As one of the few platforms they offer both income (loans) and growth (shares) real estate projects but only for residential property and either as already rented apartment units or as development projects. All the development loans, rental loans and portfolio property shares are all denominated in Euro.
| Business: | Real Estate Lending & Real Estate Equity Investing |
| Founded: | 2015 |
| Founders: | Lukas Muller, Paul Brezina & Tobias Leodolter |
| Origin: | Austria |
| Ownership: | Private |
| Countries: | Austria & Germany |
| Investors: | 2890 |
| Requirement: | EU Bank account |
Office location in Wien
Table of Contents
Rendity - Pros & Cons
Pros
- High interest on the secured loans
- Carefully selected properties
- Secondary Market (limited before 24 months)
- Experienced team - high quality projects
- Both development project, property shares and loans to already rented property
Cons
- All alternative investments with potential for high returns come with high risk
- Low amount of projects
- Early exit is first available after 24 months
- Low solidity/more debt than equity in the projects
Characteristics of Investment
Interest Rates
4% – 7,5%
Loan Duration
12 – 60 months+
Currencies
Euro
Asset as Collateral ⇙
Minimum Investment ⇙
Direct Investment Structure
Real Estate Projects on Rendity
Rendity displays the projects with a simple informative overview of the real estate on the platform. The most important information is available when browsing properties such as estimated return, the investment term, how often the yield is distributed and a short summary of the case. Projects on the platform are high quality larger buildings with several apartments and that results in higher-value projects usually in the range of 300.000 to 1,5 million euros. When choosing a specific project the platform has a comprehensive overview of the case.
11 Key Information Points
The comprehensive information-sheet about every project on Rendity can be divided into eleven different titles:
- Project Presentation: A short description of the real estate amount of units, square meters of space and how the apartments are designed if it is two, three or four-bedroom apartments and what specific demographic group the building is targeted towards.
- Deal Highlights: The most important positive highlights about the project such as “instant interest”, the developer’s prior experiences and usually a description of the area.
- Investment-Case: The overview of the case as an investment and key takes to know before investing, basically how much is needed and for what, how often will you get your interest, the plan for exiting within the term (usually 24 months) and a description of how the instant interest is structured.
- Documents: There are usually four types of documents attached to each project, with only one document in English (loan contract). The rest is in German since the property is located in either Austria or Germany.
- Project Costing: A thorough report of the costs involved with the project to validate the amount invested in the real estate. The largest costs being the property purchase and construction work, besides the marketing & sales, various duties resulting in a total investment amount that, subtracted the revenue, leaves an estimate of the net income of the project.
- Finance Structure: The finance structure is usually pretty straight forward, being divided into Equity, Crowdinvesting, and bank. While equity and the crowdfunded amounts are usually equally divided, the financing from banks is the main liabilities as in most real estate projects.
- Rendity Rating: This platform has a transparent and comprehensive rating system based on an assessment on different categories such as location, vacancy, track record, asset type, duration – resulting in a point score that is standardized to a letter score from D to A.
- Timeline: The timeline of the project is transparent and straight-forward, divided into the time of purchase, the start of planning/permit, the beginning of construction and development in sales.
- Location: A very comprehensive description of the area and its surrounding attractions, clearly describing what makes this specific location valuable and what the main group of people residing in the area is characterized by.
- Building Plan: This is purely images of the official building plan for specific apartments giving investors a look into the arrangement of space and how it is designed for the above described ideal renters.
- Team: The real estate development teams are usually from Austria or Germany and this description is done by the team itself, why it is mostly in German, with links and information about former projects done by the real estate development group.
Buyback Guarantee on Rendity
There is no buyback guarantee on Rendity, which is typically not seen on this type of serious equity real estate crowdfunding platform. Most Buyback Guarantees exist because there is very little trust in the 3rd party that acquires the investment projects, on this platform the cases are delivered by large trustworthy development groups with a transparent work process.
What Happens if the Platform Bankrupts?
There are two different types of investment structures in P2P investing:
- The direct structure means you are buying a claim/share against the company directly.
- The indirect structure means you obtain exposure to a project by investing in a project or loan issued by a platform company to the loan originator.
Rendity has a direct investment structure and as an investor, you will own either share in the company owning the property or own a part of the loan contract against the company that owns the property. A market crash and ultimately a platform or project bankrupt will not change the fact that you own shares or a loan claim against the company. However, the sale of real estate in such a case might lead to a loss. So, as with all real investment, there are risks involved, resulting in you being able to earn an income. The platform created a risk notice describing the most common risks involved with investing on Rendity.
Real Estate as Collateral
If there were to be a default in the company owning the real estate, it is the real estate collateral that can secure all or some of the investor’s principal balance. At Rendity the crowd usually provides less than 20% of the total financing, as bank loans are mainly used to finance the real estate projects. The additional external financing allows the shareholders to buy into larger properties with bigger advantages of economics at scale, but as the financial strength of the company owning the real estate is weakened by this the risk increases a bit. The real estate asset can depreciate and realize a loss for the investor in the case of a bankruptcy. This could happen if for example tenants misuse the place or don’t pay rent for too long a period, while the market is falling. This event is most likely rare and has so far not happened on the platform.
Platform Features
Manual Investing
The primary market on the platform for manual investing is straightforward and displayed simply, with an overview of every project sortable by Location (Austria/Germany), Category (Development/Portfolio Properties), and Status & Return. There are two types of real estate investments on the platform:
Development Projects
Rendity provides mostly real estate development projects handled by professional developers in Austria or Germany. The development is primarily renovation, building new property and revitalization of historic buildings. Three key characteristics describe the development projects on the platform:
- Structured as a loan
- Short term (12 to 36 months)
- Higher interest rates (up to 7,5+%)
For more information read visit Rendity’s page on their Strategy behind the Development Projects.
Rental Properties
So far three rental properties have been listed on Rendity with a total funding amount of 2,2 million euros. The rental properties allow investors to buy into distributed rental income and appreciation of residential real estate. Four key characteristics describe the rental properties on the platform:
- Structured as a subordinated loan
- Quarterly dividend (3-4% p.a.)
- Long duration (3 – 7 years)
- Resell option after 24 months
For more information read Rendity’s page on their Strategy behind the Portfolio Properties.
Automatic investing
It is not possible to set up automatic investing at Rendity, but it is usual for this type of rather new real estate crowd investing platform since the amount and frequency of projects is limited to 1, max. 2 each month. Even though the platform has a great virtue in selecting high-quality projects and to assort the undesirable ones, it is still recommended to research and carefully selecting the real estate projects yourself, to optimize for the desired outcome.
Secondary Market
Rendity opens up for exiting your investment after 24 months, allowing you to sell your share of the project at the secondary market. In practice, this means that when 24 months have passed, the option of putting your shares for sale will be available at the platform and if another investor is willing to buy at the price, you will be able to exit the investment before expected end-date of the real estate project.
Nice to Know for Investors
Registration Process
Registering at Rendity is very simple. Creating an account as an individual requires just an email and a password. The platform complies with KYC (Know Your Customer) and you need to provide an identification document when you withdraw money from the platform.
Deposit & Withdrawal Process
Depositing funds to your investor account is done in three steps:
- Transferring money into the Rendity account with any of the below listed funding methods.
- Your funds will be available for investment within the day of confirmed arrival to Rendity (usually 1-3 banking days).
- After the funds are received and added to the account, you will receive an e-mail confirmation.
Withdrawing funds is the simplest process of the two. It consists of clicking “withdraw funds”, entering the available amount and waiting the 1-3 business days. There is no minimum withdrawal restrictions and no further additional fees or commission for withdrawing the funds. Remember, depending on their fee structure, your own bank might charge fees for handling the transaction or exchanging currency.
Funding Methods
Rendity Tax
Rendity does not address any tax questions and since it is always up to your personal tax situation and the agreements between your country and the location of the investment, it is advisable to contact your local tax advisor to fully understand your individual situation. With most platforms in Europe, you are mainly obligated to pay tax in your home country.
Support
Rendity is always reachable by email and is fairly quick to answer questions you might have. Furthermore, the platform launched a chat function in the bottom right corner, allowing you to chat directly to the support within the business hours (GMT+1 Monday to Friday, 9.00 to 17.00) The down to earth approach and seemingly good customer relations is a benefit for the transparency of the platform and an easy way to get quick answers to any questions not available in the FAQ.
Rendity Competitors
Who can invest?
Any person, 18 years or older, who has a European bank account can make investments on our platform. Companies with a bank account within the European Union (EU) can also invest.
Rendity FAQ: “Who can invest on the Rendity platform?”
Is Rendity Regulated?
Rendity is regulated by the Chamber of Industry and Commerce (IHK) in Germany as an authorized financial investment broker and is also registered as a commercial investment adviser in Austria.
Rendity Cashback Bonus - Get a 25 Euro Bonus on your first investment
Rendity has a referral program giving new investors a bonus on the amount invested within the first three months. P2PMarketData is part of this program that will also return 25 euro to us – without additional costs to you of course. So if you would like to support us while also receiving 25 euro yourself on your first investments, please use this link for signing up at Rendity.
Rendity Statistics
| Founded: | 2015 |
| Total investments: | +€32 million |
| Average investor return: | 6,10% p.a. |
| Number of investors: | 2890 |
| Number of projects | 58 |
| Average duration: | 28 months |
| Average investment amount: | €2.603 |
| Average investor age: | 43 years |
| Small investor percentage: | 76,5% |
| Lead investor percentage: | 22,9% |
| Companies investor percentage: | 0,6% |
| Male investors: | 77,70% |
| Female investors: | 22,30% |
Disclosure
Please note that this overview may contain affiliate links. It means that a commission is earned if you decide to invest after using the link – of course without additional costs to you. The information on this site does not constitute investment advice and is solely to give you a simple and easy overview of the platform. Always conduct your own due diligence and consult your financial advisor before making any investment decisions.
* Historical return is not a guarantee of future return. The number is directly from the platforms website rendity.com at the last update of this article: May 11, 2020.