When investing in buy-to-let projects through the InRento platform, security and transparency are at the forefront of InRento’s business model. InRento’s comprehensive risk management framework is designed to protect investors and ensure that tangible, secured assets back every investment. Here’s how InRento ensures the safety of your investments:
1. First-Charge Mortgage Over the Assets
Every project funded on the InRento platform is secured with a first-charge mortgage over the property. This legal safeguard grants investors priority rights over the asset in case of default. In simple terms, investors’ interests are protected, ensuring they are the first to recover their funds if anything goes wrong.
2. Transparent Fund Transfers
Investors can be assured that their funds are only transferred based on legally binding notarial property purchase agreements and that the funds are disbursed to the borrower only when the mortgage is established on the project’s asset, ensuring additional safety for the investors. InRento exclusively finances verified property purchase deals, eliminating the risk of funds being misdirected or falling into the hands of fraudsters. This ensures that every investment is tied directly to a real, registered property purchase.
3. Funds Management at InRento
InRento has selected two payment partners to manage investors' funds with the highest level of care: Paysera and Mangopay. Both companies are licensed and provide their services across the European Union. By partnering with Paysera and Mangopay, InRento ensures that all financial transactions are processed securely, with full traceability and accountability. This separation of funds is a crucial protective measure, guaranteeing that investors' money is used solely for its intended purpose and is safeguarded against any potential financial challenges that InRento may encounter.
4. Strict Due Diligence for Renovation and Conversion Projects
For projects involving renovations or conversions, InRento goes beyond standard practices by conducting thorough due diligence on project owners. According to InRento’s loan agreements, critical documents can be requested from the borrower at any time during the loan period:
Financial statements;
Bank account records;
Invoices for completed work;
Other relevant documents verifying the proper use of funds.
Due to strict due diligence processes, InRento declines many loan requests. The main reasons for these declines include the poor reputation of project owners, financially irrational business plans, and inadequate real estate appraisal reports. This rigorous process ensures that project owners are held accountable, providing maximum transparency and reducing risks related to misuse of funds.
5. Risk Management Framework
At InRento, we have dedicated hours to developing a strong risk management and assessment system. InRento team of experts carefully evaluates every project based on key metrics, ensuring that only well-vetted, promising projects make it to InRento’s platform.
6. Property Insurance Benefiting Investors
All properties financed through InRento have insurance coverage equal to the loan amount. The platform itself is listed as the beneficiary of the insurance policy. This means that insurance payouts will be directed toward covering the outstanding loan, safeguarding investors' funds in the unlikely event of property damage or loss.
7. Guarantors and Surety Agreements
In some instances, InRento requires potential borrowers to provide a guarantor as an added layer of security. A guarantor serves as a financial backstop, ensuring that if the project owner faces bankruptcy or financial distress, InRento has the legal right to redirect creditors’ claims toward the guarantor. This approach minimises investment risk by extending liability beyond the project owner, offering an extra level of protection for our investors. By holding both the borrower and guarantor accountable.
By combining first-charge mortgages, proper fund management, extensive due diligence, insurance protection, and surety agreements, InRento provides a safe and transparent investment environment. Our commitment to robust risk management ensures that investors’ funds are protected at every stage of the investment process.
