Get in touch with one of our specialists who can help with any questions you may have.
Futurerent is a simple alternative to borrowing money. Created for property investors, Futurerent is a loan-free financing solution that gives property investors their rent in advance, with no hidden fees and no credit impact.
The technical explanation of what we do is as follows: Futurerent enters into a type of lease with you called a concurrent lease, under which it provides you with a rental prepayment, and receives a fixed amount of rent from the property.
The key difference between Futurerent and other options, is with Futurerent you are not borrowing money. You are simply getting your rent in advance.
Unlike the banks, we are simple, fast, and loan-free, which means:
- no credit impact
- no hidden costs
- you still receive some ongoing rental income throughout the term
- if the tenant moves out or is in arrears, you won't need to make a payment to Futurerent and it won’t cost you any extra.
Futurerent gives property investors their rental income, paid in advance. While you should consider your own circumstances and consult your financial adviser, Futurerent offers a simpler solution than dealing with the banks and won’t impact your credit.
When it comes to topping up your mortgage, many people don't factor in the total interest over the entire term of their mortgage, or other transaction costs like LMI or break fees that might apply.
Given we are not a loan, Futurerent is a fundamentally different product to a mortgage so it is difficult to compare and you should seek your own financial advice.
How does Futurerent work?
Absolutely! Many of our clients use Futurerent across a number of their investment properties to maximise the amount of rental income they can access in advance.
We charge a one-time client administration fee of $750 to set you up with an account once you are approved, along with a fixed cost of 9.9% per year on the rent advanced.
This fixed cost is calculated from the outset, and effectively charged in the form of a fixed amount of rental income that Futurerent will receive from the property.
For example, if your property generates $3,000 per month and you choose to access one year of rent in advance ($36,000), the cost would equate to $297 per month ($3,564 per year) plus $750 upfront. This cost is fixed at $10,692 of rental income that Futurerent will collect, in addition to the rent advanced to you.
If you are unable to find a tenant and are without rental income, the cost doesn't increase. It will simply take Futurerent a little longer to receive the fixed amount of rental income.
For example, if during your 3-year Futurerent term you have a vacancy which causes 3 months of no rental income, your total Futurerent term will become 3 years and 3 months, instead of 3 years. Despite the longer term, it won't cost you anything more.
It is important to note, however, that as the cost is fixed, if Futurerent receives the fixed amount of rent it is due sooner than anticipated, the cost won't be reduced.
Subject to approval, you can access anywhere between $10,000 and 2 years of your rental income (up to a maximum of $100,000 per property).
You will need to ensure the remaining rental income, after Futurerent's payment each month, is enough to cover your expenses.
Definitely not! We offer complete transparency. We've developed a handy calculator to help you make better decisions about your rental income. With this calculator, you can see:
- exactly how much rental income you can access in advance
- what it will cost you
- the remaining rental income you'll receive after Futurerent each month
No. Applying for Futurerent doesn't affect your credit score. We run 'soft' credit checks through Equifax on our applicants (we will ask for your consent before we do this). This leaves no trace of a credit enquiry on your record.
All we need from you is:
- your driver's licence, or passport number
- your contact details
- your property manager's contact details
- from your property manager, we'll get a copy of the lease (if there is one) and your property management agreement.
No, Futurerent doesn't provide property management services, as we specialise in providing future rental income. However, we have strong relationships with some of the best property managers in the industry. If you're looking for a property manager, we may be able to connect you with one.
We work with most property managers, and have a network of +300 preferred property manager partners.
As we work closely with the property manager to ensure you're paid your share of the rental income every month, we need to have a property manager in place.
If you're self-managing to save on property management fees, we suggest you still apply, as we work with some of the best property managers in the industry. They may be able to offer you a heavily discounted rate if you come through us.
After getting my Futurerent
We understand that tenants sometimes pay their rent late or are unable to pay the rent.
That's why if the tenant moves out or is in arrears, you won't need to make a payment to Futurerent and it won’t cost you any extra. It will simply take Futurerent a little longer to receive the fixed amount of rent it is due.
As usual, if the tenant moves out, the property manager will need to find a new tenant.
That's fine, plans change. We just ask that you let us know and keep us in the loop. Futurerent can collect the remaining rent from the sale proceeds at settlement.
Legal and financial questions
Futurerent enters into a type of lease with you called a concurrent lease, under which it provides you with a rental prepayment, and receives a fixed amount of rent from the property.
Once we receive that fixed amount of rent, the Futurerent lease ends.
We enter into a type of agreement that gives Futurerent the right to collect a fixed amount of rent from your investment property. Once we collect that fixed amount of rent, the agreement ends.
We have obtained a product ruling from the ATO to make things easy for your accountant and protect our customers. At the end of each financial year we will provide you with a statement showing the rent collected by Futurerent and your indicative accrued rent (see paragraphs 15(b) and 15(c) of the product ruling). The statement is intended to assist you in filling out your tax return and does not constitute tax advice. Futurerent does not provide taxation advice. You should review the product ruling for more information and seek your own tax advice on the application of the product ruling to your own specific circumstances. If tax laws change or if the Commissioner of Taxation withdraws the product ruling, it may result in different tax outcomes than those described in the product ruling. You can get a copy of the product ruling here, or contact us at firstname.lastname@example.org for a copy of the product ruling (free of charge).
Please note that the product ruling from the Australian Tax Office:
- is only a ruling on the application of taxation law
- is only binding on the ATO if the Scheme is implemented in the specific manner outlined in the product ruling.
- The Commissioner of Taxation (Commissioner) does not sanction, endorse or guarantee this product. Further, the Commissioner gives no assurance that the product is commercially viable, that charges are reasonable, appropriate or represent industry norms, or that projected returns will be achieved or are reasonably based.
- Potential participants must form their own view about the commercial and financial viability of the product. The Commissioner recommends you consult an independent financial (or other) adviser for such information.
Every bank and credit officer is different, so it is hard to generalise about this topic. We also hear different things from different clients, but generally our clients tell us that when they go to refinance, the bank looks at the rent going to Futurerent as an expense, which reduces their rental income available for debt service until our agreement ends.
No commitment. No credit impact. No worries.