In this Rendity review we will look at how the platform works and what to expect as an investor.
Rendity is a P2P platform that focuses on RealEstate in Austria and Germany. They publish around 2-5 new projects at most each month since the strict demands they have for the borrowers in these countries. Rendity has both rental based income and new development projects to invest in depending on what you are looking for. Rendity has been open since 2015 and is now one of the most popular Austrian P2P platforms.
Interest rates average around 6% as of 2020. All the loans have mortgages as collateral and compared to other parts of the EU, the market for RealEstate has been stable for a long time.
Rendity was created already in 2015 by three co-funders in Austria. These three young friends came up with the idee after recently graduating to give people a way to invest in real estate and not have to put in all the money for a project which many of us don’t have the capital for.
These three founders are Lukas Müller the CEO, Tobias Leodolter the CMO and Paul Brezina the CFO. Together with their advisory board all are listed on the website incl, contact information such as email, LinkedIN profiles and so on.
Rendity focus on few but big projects in Austria and Germany where they have people working to have a close connection to every project. They started out with one project in Vienna 2015 and since then already 58 projects have been listed without any defaults up to this day.
One big difference Rendity has compared to other platforms is that all loans listed are already pre-financed with capital from banks and borrowers equity. So all listed projects don’t need to be fully invested through the platform to start. That’s also one reason you get Instant interest in the investments you make. Usually only 10-20% of the projects capital get funded through Rendity, the rest from banks and the borrowers.
Rendity Income & Rendity Growth
They have two different lending options to invest in on their platform today. Since everything is about Real Estate on Rendity it’s one of few P2P platforms that is offering rental based investments as an alternative. Here below you will see a short explanation about the two.
- Rendity Income: With this option you will be lending the money to property management professionals. It’s existing locations with tenants already using and paying for either living or office space. This is considered the lowest risk for the investment compared to Rendity Growth since the interest is paid from rent collected. These loans are usually between 36 – 60 months. Average interest for Rendity Income loans is at 4.25%. Interest is paid out quarterly for these loans.
It’s worth mentioning that with Rendity Income you will be able to exit and resell your part after 24 months if needed.
- Rendity Growth: These investment deals are for normal development projects. The loan period for these loans range from 12 – 36 months. The interest is higher than the Rendity Income option. As of now the average interest on these loans are at 6.25%. Sometimes you will be able to find projects with up to 7.5% but it’s few. The interest is usually paid out per year with this option.
Who can invest at Rendity?
Everyone over the age of 18 can invest on Renditys P2P platform. You must be living in the EU and also the bank account used has to be in any of the EU countries. Both private persons and companies can create an account without a problem.
You just need to follow KYC laws and send in the information needed and all is done.
Rendity Auto Invest?
Rendity does offer auto invest with their new feature Robo Invest.
This feature lets you set different criterias like most other Auto Invest options you find on other platforms. Main settings are to pick the loan amounts, duration, location of the projects and interest rates wanted.
One thing that Rendity offers and not others, is that any investment made with the Robo Invest can be taken back within 14 days and canceled. This is good if you made some mistakes in the settings and see that it picked up loans you didn’t want from the start.
Since Rendity is focusing on a few projects and only lists up to around 5 new projects each month, the need for it is not there I believe. The projects listed usually are much bigger than other platforms. They range from €300 000 up to €2 000 000.
The minimum investment is at €500 per loan so when investing bigger amounts it is good to do it manually so you can read up on the information around the projects in my own opinion.
Rendity Secondary market ?
They do not have a secondary market on Rendity today. When you invest in a loan on their platform you must be willing to wait for the agreed upon timeframe that is set in the description from start for most of the loans.
But It’s a little bit different for the Rendity Income loans. These loans usually are for a longer period of time, sometimes up to 60-70 months. you will have an option to be able to resell these loans after 24 months. After this time you can choose to resell it on the main market to get the principal back if you want to exit after that period.
Rendity Buyback guarantee
On Rendity you invest in real estate so they do not have a buyback guarantee like you can see on other platforms that usually handle private loans from other credit institutions (loan originators).
Here your loans will be secured with real estate assets which in many ways can be as safe or even better. If there would be any problem the assets would be sold like with any other bankruptcy procedure and from there the money would be returned when all is settled.
Rendity review – Interest rates
The average interest rate on Rendity’s platform is at 6% today. This average is from all projects between Rendity Income and Rendity Growth. Some projects and rentals will be as low as 3.5% and go up to the high at 8% if you are lucky since they are not often published.
A good feature they have is Instant Interest for all the loans. This means that even if the project is still in the funding phase you will receive interest for the time waiting. This is something not many platforms have and it’s because every listed project is already fully financed from banks and equity capital from developers. So there is no chance of the listed projects to not get started.
Rendity Signup Bonus
As a welcome offer on Rendity and their P2P Real Estate platform you will get a bonus. This bonus is €25 for creating and starting to invest in any of the projects listed on the platform. It’s automatically added after you have verified and made your first investment. *The links in this review and on Getrichtogether will give you the bonus.
So if depositing say €1000 and investing in 2 projects at €500 each for 12 months with 6% interest. This €25 will give you an extra 2.5% for the first year adding it all up to 8.5% return.
Customer support – Rendity review
You can reach them in many ways on email, chat and over telephone. The site is in both English and Deutsch. But some parts like the Chat and their blog are still in Deutsch for some reason. Maybe they will fix this?
They have support numbers to the offices in Austria and Germany. You can speak English with them so the communication is no problem. They will reply within 1-2 days on email and it’s same day answers on chat and phone for quick help if needed.
There is an ocean to pick from when it comes to P2P lending sites today so I will list some of the competitors in this Rendity review. Since Rendity focuses on Realestate here is some of the main competitors in this area in the EU.
Estateguru *Avg 13% interest. Reinvest24 *Avg 14% interest. Crowdestate *Avg 17% interest. Bulkestate *Avg 14% interest.
For more P2P platforms check out my P2P comparison page here.
Creating an account on Rendity
You have the option to invest as an individual or as a company. Both are straightforward and done in 5-10 min. Just visit Renditys site and follow this five steps.
First step: is to fill in your Name, Email and create a password.
Step two: you fill in additional information like Date of birth, Address, Nationality and phone number.
Now step three: is to upload ID to follow KYC laws. Either Passport or driver license is okay. This step can be done later before you find a project to invest in.
Next step four: you are sent to pick out the loan you want to invest in and deposit. This also can be skipped in the beginning.
Last step five: is to review and click send information. You will now get to verify your email and all is done.
Deposit to Rendity platform
It’s easy to transfer funds to Rendity as of today. You have two options, normal SEPA bank transfer and direct with credit card. For bank transfers it will take around 1-2 days like normal within the EU bank to bank transfers.
A nice touch is the credit card option since it will instantly get your funds to the platform to start investing. This option is not something you see on many P2P platforms today.
There is No fees on deposits.
Withdrawal from Rendity
When it’s time for you to withdraw funds there is one way to go at it. A normal bank transfer which is done within 2 work days. The funds can only be transferred to the bank account you have verified when you start the account to invest.
There is No fees for withdrawals.
My opinion – Rendity Review
If you read all the way down here in this Rendity review you might want to know what I think of their platform. In many ways I do think it’s a good choice in the P2P arena. They have pre financed projects, the interest rates are not the highest but still better then normal savings options. That Rendity is focusing on Austria and Germany and not all over the EU is good so they work in an area they are familiar with. And the market there is usually very stable which is great.
I would want to see more projects listed and of course that the interest rates could go up a bit. But who doesn’t want that right?
But all in all, after 5 years Rendity sure is a platform to consider in a P2P portfolio.
Important: Even if there is a Buyback Guarantee / Fund, Group Guarantee, collateral connected to a loan and so on there is always a chance you can lose your whole investment. There is nothing such as risk free investment, this goes for P2P, Stocks, Bonds, Property or anything else. Don’t invest money you can’t afford to lose.
I hope this information on Rendity gave some clarity on how the platform works and answered some questions you might have had. I will keep updating this Rendity review in the future when new features come along or other important news.
If you are thinking of something to ask or discuss just leave a comment or send me an email.