Available for funding: €0
 
€37 000
15 investors

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Annual fixed-return rate
7.3%

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Capital Gains
45% – 55% from profit

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InRento is introducing the new buy to let investment opportunity located in the capital of Lithuania, Vilnius.  The investment case consists of a studio apartment located: at Pramonės str. 97, Vilnius (referred to as P97, Vilnius).

InRento has already financed properties in this building in the project named - Studio Apartments. The project owner wants to consolidate his position in the building.

Currently, the property is rented out and are generating a 250 EUR per month of rental income, which results in an 8.11% gross rental yield.

The net rental yield is 225 EUR that is distributed to the investors, or in a percentage value equal to 7.3% per annum net with the given situation of the tenancy. 

Reasons to invest in P97, Vilnius

  • Attractive rental yield;
  • Modern and cozy premises; 
  • The premises were renovated in 2019;
  • Independent valuer valued the premises at € 43,600;

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Capital growth change:

According to en.aruodas.lt statistics, the prices of these types of properties in this district of Vilnius increased +12,18% in the recent year, while in the last five years the change was +23,65%.

Tenant:

The tenant is a natural person and paying 250 EUR per month for rent and the outstanding rental contract is valid until 2022-05-23. 

Financial terms of the investment:

  • Maximum term: 84 months (7 years)
  • Rental income share: 90% investors / 10% borrower
  • Fixed-interest rate: 2%
  • Increased interest rate: 5%
  • Security: 1st charge Mortgage

InRento investors are granting a loan to the borrower for the acquisition of the rental property. 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 250 EUR per month, which results in 225 EUR  distribution to the investors, or in a percentage value equal to 7.3% per annum with the given situation of the tenancy.

The capital growth distribution: 

  • Investors: 45% 
  • Borrower: 45% 
  • InRento: 10%

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 30 day funding period. The interest is being calculated from the moment the investor places the investment.

The project owner (borrower):

The borrower - UAB ‘’Real Assets’’, is a legal entity established  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.

When is it possible to "exit the project"?

When the project is fully funded you will be able to sell your investment on the secondary market. The fee for the secondary market transactions is 2% of the principal value, which is charged to the seller.

What happens if the tenants leave the property?

In a scenario of the tenant cancelling the tenancy, the borrower is liable to pay a 2% annual interest rate for the first month of vacancy. If the borrower does 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 is sold?

When the property is sold at a higher price than it was acquired, the capital growth will be distributed in the following structure: 45% investors / 45% borrower / 10% InRento. The project owner assumes potential loss if the property is sold at a lower price.  

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 are currently fully rented out, there is a risk that the asset can lose a tenant and it can take time to find replacements.

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 vacancies, the borrower is required to distribute fixed-interest payments, which protects your bottom line.

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.

2022-05-02

We would like to inform you that the interest payment for this project was successfully received last week to the escrow account.

We have recently changed our hosting provider and currently are testing some of the payment and withdrawal systems. This is critically important not to make any mistakes, and we want to be absolutely sure that this works properly without any issues. We expect to distribute the interest for March in the middle of this week.

We apologise for the inconvenience.

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

InRento team

2021-09-14

We would like to inform you, that the mortgage on the P97, Vilnius assets has been successfully placed (document is attached in the documents section). 

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

InRento team