Available for funding: €0
 
€220 000
40 investors

The annual return indicates the fixed-interest rate, or what investors shall earn in percentages. Percentage may depend on amount of the investment. To see specific returns please enter investment amount above.

Annual fixed-return rate
7.5% - 7.7%

This number indicates what part of the profit share you would earn when the property is sold for profit or fixed annual capital gains that would be paid when project is realised. More information can be found by scrolling below the project description.

Capital Gains
45% – 55% from profit

Shows amount you've entered for amount of your investment above. Minimum investment amount is EUR 500.

Invest:
-

Shows amount that you are expected to earn during one year of investment. Earnings are automatically calculated when you enter the investment amount above.

Earn:
-

Total expected
earnings:

Total expected
earnings:

-

InRento is introducing the new buy to let investment opportunity. The investment offer consists of six studio apartments located in the capital of Lithuania, Vilnius.

Currently, the properties are rented out and are generating a 1.500 EUR per month of rental income, which results in an 8.18% gross rental yield.

The net monthly rental yield is 1.350 EUR that is distributed to the investors, or in a percentage value equal to 7.36% per annum net with the given situation of the tenancy. 

Reasons to invest in studio apartments in Vilnius:

  • The investment case consists of 6 rental properties.
  • The investment is generating a 7.36% (8.18% gross) annual yield with the current state of the tenancy.
  • The premises were reconstructed in 2019.
  • Independent valuer valued the premises at € 240,900.
  • The project will generate income even for the funding period. The rental yield will be distributed on April's and May's 15th day.

<blur>

Tenants:

The tenants are natural persons and paying 1.500 EUR per month for rent and the outstanding rental contracts are valid until 2021-07-06. 

Capital growth change:
 
Prices of apartments in this district of Vilnius increased +18,8% in the recent year, while in the last five years the change was +33,47%. Recently, there has been a significant increase in the interest of investors and residents in this district of Vilnius, and this is reflected by data. 


Source en.aruodas.lt

Financial terms of the investment:

  • Maximum term: 84 months (7 years)
  • Rental income share: 90% investors / 10% borrower
  • Fixed-interest rate: 1%
  • Security: 1st charge Mortgage

InRento investors are granting a loan to the borrower for the acquisition of the rental properties. The loan is secured with a first-charge mortgage which in case of the borrower’s inability to fulfil financial obligations would be used to repossess the asset. 

The revenue-share between the borrower and the investors is set at 90/10, meaning that the borrower is obliged to distribute 90% of the income to the investors. Current absolute income is 1.500 EUR per month, which results in 1.350 EUR  distribution to the investors, or in a percentage value equal to 7.36% per annum with the given situation of the tenancy.

  • Increased interest rate: 5%
  • Capital growth sharing: 45/45/10

What would happen if the tenants would leave the property?

In a scenario of the tenant cancelling the tenancy, the borrower would be paying a 1% annual interest rate until the new tenant would be found. If the borrower would not rent out the assets within 3 months, the fixed-interest rate would be increased to 5% per annum.

What will happen when the property will be sold?

When the property will be sold and it will be sold more expensive than it was acquired. The capital growth will be distributed in the following structure: 45% investors / 45% borrower / 10% InRento.

When investing: 

15,000 - 29,999 EUR - the capital growth will be distributed in the following structure: 50% investor / 45% borrower / 5% InRento.

30,000 EUR and more - the capital growth will be distributed in the following structure: 55% investor / 45% borrower.

Rental income (interest):  

This project has a 60 days funding period. This project rental yield will be distributed on April's and May's 15th day even if the project would not be fully funded. 

The project owner:

The borrower - UAB Real Assets, is a newly established legal entity to serve as a special purpose vehicle for a purpose of increased security for the investments on InRento. The manager of this company- Justas Kaveckas has been working in the Real Estate industry for the last 15 years. He has successfully commercialised residential, commercial and hospitality projects internationally and counts numerous successful sales of companies operating in the real estate industry.

Key investment risks:

Risk of falling prices: The price of the property might fall due to the increase in supply or decrease in demand in the area or other economic factors.

Liquidity risk: The borrower might be unable to find a buyer in order to sell the property.

Tenant risk: Although the assets currently are fully rented out, there is a risk that the asset can lose the Tennant and it can take time in order to find the new tenant.

Investing with InRento, is similar to owning a rental property, however with us you don't have to worry about day-to-day property management and in the periods of vacancy, the borrower is required to distribute fixed-interest payments.

2023-06-26

We would like to inform you that the project owner is currently implementing refurbishment works to increase the property's value and reduce heating costs for tenants. The use of the premises is also being converted into “creative workshops” (which are most commonly used for lofts), which will further increase the property's value.

During the refurbishment works, a part of the premises will not be rented out. In consideration of these circumstances was signed the Special Terms & Conditions of the loan – Amendment NO. 1 (document available on the platform under project description). An updated property appraisal report has also been added.

The updated terms increase the total loan amount to EUR 240,000, and investors will be paid a fixed annual interest of 7.5% – 7.7% regardless of occupancy. The first indexation of the fixed interest rates for this project will take place on 15th January 2024.

Please note that the Loan-to-Value (LTV) ratio decreased to 67%.

2023-06-14

We would like to inform you that the amount of interest payable this month will remain the same as before (EUR 1590.11). However, the interest will be slightly reduced from next month as one of the project's lofts is currently not being rented due to the renovation work being carried out in order to remove mould in the loft.

The new monthly amount to be paid is EUR 1096.67 (investors' annual return will be 5.98%).

2023-03-14

We would like to inform you that InRento has transferred the investors the share of the profit of InRento, which is distributed on the sale of the Project Assets. Which for a number of investors has increased the amount that would be distributed in a profit payout. For a detailed explanation please read below.

Previously, the investor’s profit share was set based on the investment amount:

Invested up to EUR 15,000 – 45%;
Invested from EUR 15,000 EUR (inclusive) up to EUR 30,000 – 50%;
Invested from EUR 30,000 EUR (inclusive) – 55%.

After InRento has transferred its share of the profit, all investors’ share of the profit is equal to 55%. However, based on the amount invested, an accounting fee may be applied:

Invested up to EUR 15,000 – 0.18;
Invested from EUR 15,000 (inclusive) up to EUR 30,000 – 0.09;
Invested from EUR 30,000 (inclusive) – 0 (investment terms have not changed).

In the case of this project, for a certain group of investors in case of profit payout, the net amount grows. Below you can find an example and comparison of how a payout of 100 EUR changes based on the previous and updated structure:

Previous structure:

Invested up to EUR 15,000 – payable profit 45 EUR = 45% * EUR 100;
Invested from EUR 15,000 (inclusive) up to EUR 30,000 – payable profit 50 EUR = 50% * EUR 100;
Invested from EUR 30,000 (inclusive) payable profit 55 EUR = 55% * EUR 100 (investment terms have not changed).

From now:

Invested up to EUR 15,000 – payable profit 45.1 EUR = 55% * EUR 100 * (1-0.18). The amount grows. 
Invested from EUR 15,000 (inclusive) up to EUR 30,000 – payable profit 50.05 EUR = 55% * EUR 100 * (1-0.09). The amount grows. 
Invested from EUR 30,000 (inclusive) payable profit 55 EUR = 55% * EUR 100 * (1-0.00). Investment terms have not changed. 

We are introducing this fee in order to optimize and standardize the methodology of internal accounting procedures and resources, due to the reason the payable amounts and percentages range between projects. This is an operationally intensive process. Additionally, for every payment InRento facilitates, it pays service fees to payment services providers, and in order to ensure cash flow positive operations, a decision was taken to introduce a percentage based tariff on profit rather than gross project profit.

We would like to clarify that investors’ interest from a share of the profit to be distributed on the sale of the assets will be paid out net, which means all applicable fees will be deducted before payment.

2022-09-16

We would like to inform you that the monthly interest from project owner was received on time. However, due to issues we are facing on the payment processor’s side we can not process the payments correctly. Interest payment for this project is received and the funds are secured in escrow account. We are aiming to distribute these payments as soon as possible on the upcoming business days.

2022-05-16

The project – Studio Apartments rental contracts were under review.

As a result, the rent increased from 1350.16 EUR to 1592.25 EUR per month. This means, that the annual current return to investors rises from 7.36% to 8.69%.

If you have any questions, do not hesitate to contact us at: info@inrento.com or call us at +37069347427.

2021-07-14

We are pleased to inform you that a new rent contract has been signed for Studio Apartments project. The contract is valid for one year. The project occupancy is again at 100% and rental income (interest) for investors hasn't changed: +7.36% per annum.

In case of any questions, do not hesitate to call: +37069347427 or write an email to info@inrento.com

2021-07-09

We would like to inform you that one of the six tenants did not extend the lease. The project owner will try to find a new tenant to keep the project occupancy at 100%. Currently, the properties are generating 1.250 EUR per month of rental income.The net monthly rental yield is 1.125 EUR that is distributed to the investors.

Investors will receive the full amount of the next payment. 

In case of any questions, do not hesitate to call: +37069347427 or write an email to info@inrento.com

2021-04-08

We would like to inform you, that the mortgage on the Studio Apartments assets has been successfully placed (document is attached in the documents section) by the project owner and that the investment will distribute interest for the previous month on April 15th. The interest for investments carried out in the month of April, will be distributed in May, until the 15th day.

If you have any questions, do not hesitate to contact us at info@inrento.com or call us at +37069347427

InRento team