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General

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Rendity is an innovative Fintech Startup based in Vienna, which allows investors to invest in high quality real estate projects via crowdinvesting through its platform.

What is Rendity?

Crowdinvesting is the practice of raising capital through the internet from a large number of people. This way of raising capital has been established for the funding of companies worldwide, and also allows anyone to invest in real estate.

What is Crowdinvesting?

Due to legal constraints Crowdinvesting platforms in Austria may only offer investments via subordinated loans. In the event of default subordinated loans will only be paid back if there are sufficient funds to cover any senior debt such as bank loans.

What is a subordinated loan?

No, because you grant a loan directly to the project sponsor, the capital is earmarked for a specific purpose and you know exactly what your investment will be used for. At the end of the loan period, you get your loan back, including the fixed interest. Unlike a real estate fund, the return is not dependent on the success of the fund management.

Can the investment be compared to a real estate fund?

We use due diligence to decide whether to offer a project for investment on our platform. For this project evaluation, we have a 20-point criteria catalog. First, developer-related criteria are checked in order to assess the general situation of the real estate developer and potential partner:

1. First and foremost, the composition of the developer team is important here. The core competencies - i.e. the technical, legal, economic and financing know-how - of a real estate developer must be covered within the team.

2 This know-how is often reflected in the professional training. Nevertheless, in addition to a systemic background, the practical experience of a development team is of greater importance.

3. in order to maintain quality within the industry, their activities are subject to licensing, which is why a check of the existence of the necessary business licenses is an essential point of the audit.

4. in case of unscheduled deviations or complications within a project phase, a welded team is important to master these difficult situations in the best possible way. Therefore, many years of successful cooperation is an absolute plus for the evaluation.

5. this previous cooperation is particularly well demonstrated by facts and figures - i.e. the company's track record. Among other things, the number of projects implemented to date, the floor space created, the equity capital employed to date and the total investment volume are used for this evaluation.

6. essential for the successful repayment of the capital is the utilization of the apartments. In this respect, a sales concept is a promising factor. For this reason, the sales structure (in-house or third-party sales) is also closely scrutinized and care is taken to ensure that realistic assumptions are in place.

7. at the time real estate projects are presented to crowdinvestors on Rendity, the financing of these projects is already secured by debt capital from the bank and by equity capital from the real estate developer. Sufficient equity backing and a good current economic situation of the borrower is therefore a basic prerequisite for listing projects on our platform. In order to be able to verify this prerequisite, a credit report is therefore obtained.

8. the last point of the developer-related evaluation is the verification of the company register extract and the annual financial statements of the real estate developer (this refers to the verification of the parent company).

The developer-related criteria are followed by the verification of the project-related criteria, which is of great importance for the further risk assessment of the respective project. The criteria examined are:

9. the purchase price of the land

10. the cost of construction

11. the approach of the selling prices

12. the dedication, as well as the energy certificate

13. the project calculation

14. the financing requirements

15. the financing structure (are there other investors besides the bank, as well as potential crowdinvestors)

16. the micro/macro situation of the project

17. the milestone plan and schedule

18. the visualization and marketing material

19. the marketability

20. the land register excerpt and the company register excerpt of the project company.

Translated with www.DeepL.com/Translator (free version)

How do we select our real estate projects?

The registration and use of our platform are free. We are financed by the specific intermediation and operational compensation from the real estate developers.

How much does it cost to use Rendity?

We offer two investment opportunities:
1. [Development Projects](https://rendity.com/growth)
2.[Rental Projects](https://rendity.com/income)

What kind of investments does Rendity offer?

All of our rental properties are managed by a professional property managers. The individual sponsor is responsible for all leasing efforts in collaboration with external real estate agents.

Who manages and leases the rental properties?

The return is a risk adjusted interest of the invested capital. It is determined by our risk assessment, which consists of an evaluation of the project and the sponsor (market situation, project situation and capital structure).

How is the return determined?

As a rule, a real estate project is not financed exclusively by borrowed capital (e.g. via a bank). In most cases, bank financing requires at least a 10% to 20% share of the total investment costs as equity. Real estate developers have to raise this equity either themselves or through mezzanine or other venture capital providers. Crowdinvestments offer real estate developers on the one hand a higher financial flexibility and contribute to the optimization of the financing structure. On the other hand, there is a positive advertising effect for the real estate developer and the respective project. This can accelerate the exploitation (sale) and thus generate returns more quickly. For this flexibility and the advertising effect, the real estate developer is ultimately prepared to pay high interest rates to the crowd investors.


Why is the return significantly higher than with conventional forms of investment?

Our development projects have a predetermined term during which the invested capital cannot be refunded. The sponsor may, however, payback the loan at any time. In case of premature repayment of the loan Rendity will inform investors accordingly.

What is the duration of an investment?

Each loan has a fixed duration. Therefore, funds can usually not be repaid before the end of that duration.

Will I be able to withdraw my money before the end of the project?

At the end of the subscription period, the loan amounts provided by our investors are made available to the issuer, regardless of whether the financing target has been fully achieved or not.

In the event that the sum of the loan amounts provided differs from the funding aim, the loan agreements are nevertheless concluded and the difference to the funding aim is provided either by the issuer itself or from other sources of capital, so that the financing is concluded successfully in any case.

What does "funded successfully" mean for already completed offerings?

As an investor you will receive an attractive yearly return. You can find the specific return of a project in the respective loan contract and project page.

What do I get for my money?

Each project has its own overview page in the login area. There you can find the most important information and conditions. In addition, an exposé will be created for each project. Investors will receive regular updates about the progress of the real estate project.

How can I find out more about projects?

With development projects investors receive the return at the end of the term.

With our rental projects investors receive a quarterly distribution of the rental returns and also a share of the appreciation, if any, when the rental property is sold after the holding period.


When do the investors receive returns?

With the Rendity Rating you can compare our projects at a glance. It measures the relative risk-adjusted return of the individual projects. A project with a B-rating is based on a higher risk than a project with an A-rating. This means that an investment in a project with a B-rating has a higher return than a project with an A-rating due to the comparatively higher risk. The Rendity Rating does not make any judgement as to whether a project is fundamentally better or worse, or whether it is better or worse suited to the risk profile of individual investors. It is for information purposes only and should in no way be used as a forecast for the future development of a specific investment. All information about the risks can be found [here](https://rendity.com/risk).

How can I better assess a potential project in terms of opportunity and risk?

The Rendity Rating is an assessment system ranging from A to E. It enabled investors to quickly compare projects across the platform. The Rendity Rating measures the relative risk-adjusted return of the individual projects. B-rated projects will have a higher inherent risk than A-rated projects. Thus, B-rated projects will generally have a higher return than A-rated projects due its relatively higher risk. The rating does not imply that investing in one project is fundamentally better, worse, or better suited for an individual investor.

How does the Rendity Rating help me with my investment decision?

Any person with a bank account within the European Union (EU) can make investments on our platform upon reaching the age of 18. Companies with a bank account within the European Union (EU) can also invest.

Who can invest on the Rendity platform?

If you invest as consumer according to the Austrian Konsumentenschutzgesetz (KSchG), you have the right to withdraw your investment within 14 days from the contract date. If you make use of your right to withdraw your investment, we will credit back the invested capital within 10 working days from the date of your notice of withdrawal to your wallet. You can withdraw your investment via your dashboard.



How I can withdraw my investment?

After investing in a project, you can actively participate by making suggestions for improvements and by giving feedback. Moreover, you will receive quarterly updates on the progress of the real estate project you invested in. We point out, though, that there is no legal claim to participate in the planning process of a project.

Which rights and obligations do I have as investor?

For development projects:

Basically, all scenarios that lead to the real estate developer no longer being able to service the lender. (e.g. due to overly high assumptions of sales prices in the project calculation).

For rental projects:

Basically, all scenarios that result in the owner of the property being unable to service the lender and the proceeds of the property being unable to cover the lenders' claims. (e.g. due to incorrect assumptions of the vacancy rate).

What scenario can cause me to suffer losses?

KYC stands for Know Your Customer and describes legal regulations for banks and financial institutes to check the identity of their customers in order to prevent any form of money laundering.

What does KYC stand for?

All repayments of your invested capital and returns are made to the provided bank account.

Why do I have to enter my bank account information?

n order to avoid money laundering, our payment service provider is obliged to match the provided IBAN with your identity.

Why do I have to either upload a bank statement, a bank transfer confirmation or a photo of my debit card?

In order for our payment service provider to verify that you are the account holder, you must upload a confirmation stating logo of the bank, your IBAN and name. This can be:

-a bank transfer confirmation  
-a bank statement  
-a screenshot of your online banking or  
-a photo of your bank card on which your IBAN and name must be visible.

Of course you do not have to disclose your account balance or any private information such as income or expenses. It's just about your IBAN and name.

Which document do I have to upload for bank account verification?

The Investor-Wallet is an individual virtual payment account, which is used to make investments. The invested capital, thus, remains in your sphere of influence throughout the whole funding period. You may also charge your personal Investor-Wallet at any time even if you plan to invest in particular projects only at a later time. The underlying bank account is a non-interest-bearing insolvency-protected fiduciary account with BNP Paribas.

What is an Investor-Wallet?

For investments via our platform, we need to carry out enhanced customer due diligence measures regarding politically exposed persons. Politically exposed person means all natural persons who are or have been entrusted with prominent public functions and immediate family members, or persons known to be close associates, of such persons.

What is a Politically Exposed Person (PEP)?

In case the minimum funding amount is not achieved within the subscription period, the money paid in by you will immediately be refunded to your bank account. As the fiduciary account is non-interest-bearing, we cannot pay any interest for the period between the payment and repayment of the capital in cases, where the minimum funding amount is not achieved.

What happens, if the minimum funding amount is not achieved?


Available Funds: This is the amount you can invest.

Invested volume: The invested volume is the total amount invested in projects.


What are the different payments in my wallet?

In Austria, income from crowdinvesting loans is subject to income tax pursuant to §27 (1) EStG in conjunction with §27 (2) 2 leg cit, whereby the annual tax allowance of €730 applies.

In Germany, the interest income is subject to capital gains tax (plus soli and possibly church tax) and must be declared as part of the personal tax return in the investment income reporting annex. The saver's allowance here is €801 per year (€1,602 for married couples).

You do not need to set up an exemption order, as we do not withhold tax for investors. We also do not withhold taxes.

How is my interest income taxable?

The increasing regulation of banks leads to the demand of higher and higher equity ratios of project developers. Depending on the creditworthiness of the developer or depending on the calculation of the specific project, this can be between 10% and 30%. If a real estate developer implements several projects at the same time, the equity requirement of the developer thus grows considerably and there is an additional need for equity, which can be raised through financing by Rendity. This can cover any financing gaps that arise, increase the return on equity and enable financial flexibility.

Why doesn't the project developer finance himself exclusively with a bank loan? Especially now with the low interest rates?

Rendity handles the majority of the administrative work, especially the communication with the “crowd”. However, to guarantee the highest possible customer satisfaction, it is necessary to update the investors about the progress and vital information about the project.

Does the developer have to expect a higher administrative effort after the funding?

The selection of experienced real estate developers is paramount to Rendity. Thereby we can offer investements in high quality real estate projects. Every single project is screened and thoroughly assessed by external advisors before it is listed on our platform. As an international crowdinvesting platform we offer our entire content in German and English, and also on mobile devices. Through the use of state of the art technology we cannot only display information in a transparent and comprehensible way, but also achieve a very high standard of security regarding the payment process.

How does Rendity differ from other crowdinvesting platforms?

You can find our most important key figures like the number of our successfully financed projects or the volume handled so far in our [Facts and Figures](https://rendity.com/statistics). Further references and details on our figures can also be found in our [Blog](https://rendity.com/blog/).

Which references are available?

It usually takes approximately one month from handing in the project until it goes live for funding. However, the project itself as well as the quality of the documents handed in are critical for the timing and success. As we put a lot of emphasis on the optimal mix of projects on our platform, the exact timing is decided individually for every project.


How long does it take until my project goes online?

We want to establish a basis of trust between the investor and the real estate developer. This can be achieved more easily when people know, who they are dealing with. Thus, detailed information on projects and their developers are only available after sign up.

Why do I have to sign up to see all the details of the listed projects?

When registering, you only need to provide your email address and set a password. If you want to invest, we are required by law to collect the following data:

- Full name 
- Your address 
- Date of birth
- Place of birth

In order to prevent money laundering, we are required by law to conduct a verification of identity for our new customers. The verification must therefore be completed in full in order to be able to place an investment. 

For the verification you only need a smartphone or a PC with webcam and a valid identification document (passport or ID card).

The ID must be a photo or photographed during the process - unfortunately, a scan/PDF cannot be accepted. Additionally, a driver's license cannot be used for verification as it is not accepted as an official photo ID.

Please note that the photo must be fully visible, not cropped, have no reflections and the ID must be valid.

The following documents are accepted:
- Passport
- identity card

You will be taken step by step through the process of our verification partner. Please follow the instructions - it usually takes no more than 5 minutes.

What data do I need to provide when signing up?

he collection and use of your personal data exclusively takes place within the limits of statutory provisions and in consideration of the current data protection laws. For further information on data protection please see our [imprint ](https://rendity.com/en/impressum)and visit our [blog](https://rendity.com/blog/sicherheit-steht-an-oberster-stelle/).

How do you protect my data and privacy?

If you refer us and invite your friends to join the Rendity community, you will both share €50 when your friend make a investment.

The bonus will be released only after successful investment, when the subscription period of the respective project has expired. Cash payment of the bonus balance is not possible. Once received, the bonus is valid for three months.

You can find an overview of your referred friends and your future or already acquired bonuses in your [Dashboard](https://rendity.com/de/dashboard/referral/).

You can find more information [here](https://rendity.com/referral).

How do I get the refer-a-friend bonus?

All our new customers receive the start bonus, which is automatically credited to your investor wallet after successful registration and can be redeemed within two weeks with your first investment.

How do I get the startup bonus?

Your contribution helps to realize the specific real estate project. This helps you to have a direct relationship to the underlying asset, as opposed to closed investment funds, where the investor has little knowledge as to where the money is actually invested in. Based on the loan agreement you have a claim against the debtor in the amount of your capital contribution. This claim includes the repayment of your contribution upon completion of the loan period as well as an attractive interest rate.

What happens to my contribution?

A separate insolvency protected bank account is created for each project. Only after a successful crowdinvesting campaign, namely reaching the funding limit, the funds are transferred to the real estate developer. In case the funding limit is not achieved, the money is transferred back to the investor. The bank accounts are handled by payment service provider Lemonway. All bank accounts handled by Lemonway are held by BNP Paribas SA based in Paris, France. Due to the fact that the account-keeping bank is situated in France, money transfers to and from BNP Paribas SA within the European Economic Area are considered cross-boarder payments according to EU Regulation No 260/2012 on establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation. SEPA credit transfer is treated no different to a domestic transfer. Thus no additional fees apply.

Who manages the fund?

For more detailed information on possible risks please refer to our [risk notice](https://rendity.com/risk).

What is the risk?

A market crash in the real estate sector does not have any effect on your claim for timely payment of the capital contribution including interest against the real estate developer. However, we cannot guarantee that a market slump may have negative repercussions for the real estate projects listed on Rendity. (For risks regarding the qualified subordinated loan agreement see above)

What if the real estate market crashes?

The claim for timely payment of the capital contribution including interest shall remain in principle unaffected. (For risks regarding the qualified subordinated loan agreement see above).

What happens in case of delay of a project?

In your wallet you will find the so-called income statement, which you can easily download - for further use for the tax office.

How do I get a tax certificate?

You can use the "Withdraw" button in your wallet to transfer your available funds to your withdrawal account.

How can I withdraw my funds?

Yes it is possible. For a company account we need a current excerpt from the commercial register, which is not older than three months and an identity card. If there is more than one shareholder, the identity card of all of them is required.

I want to register with my company - is it possible?

How does Rendity and crowdinvesting work? The FAQ answers the most frequently asked questions about our platform and how to invest with us.