Frequently Asked Questions
About Futurerent
Futurerent is a specialist provider of future rental income, giving residential property investors up to 2 years’ rental income upfront in 2 business days. We offer you a faster and simpler loan-free solution for your investment capital and cash flow needs.
Unlike the banks, Futurerent is 100% built for property investors. We are simple, fast, and loan-free, which means:
- no interest
- no late fees
- no credit impact
- funding in 2 business days
- clients receive ongoing rental income throughout the repayment term
- the ability to pause repayments if your tenant vacates or stops paying
At Futurerent, we don’t need the painful paperwork that banks require, like loan size, income statements, and details about your expenses. This is because all you’re doing is bringing forward your own rental income, not borrowing money.
Less paperwork also means less waiting around. We fund all our approved clients within 2 business days.
Refinancing your entire loan is significantly more expensive than simply accessing the money you need using Futurerent. Refinancing often results in significant break costs if you’re on a fixed rate or if you switch to interest-only. You’re also looking at adding years in interest to your home loan.
For example, a $25,000 top-up to a $300,000 home loan on an average investor rate of 5.1% will cost you an extra $23,866 over a 30-year term. In contrast, accessing $25,000 of your rental income upfront would only cost you $4,500.
How does Futurerent work?
A simple, monthly admin fee of 0.5% on the withdrawn amount.
Just like your repayments, this admin fee is also automatically paid out of your tenant’s ongoing rent payments.
For example, if your property is rented for $700 p.w. and you choose to withdraw 1 year of rent upfront ($36,500), your admin fee would be $42 p.w.
Unlike interest payments on a refinance, your admin fee is fixed over the repayment term. Using the same example above, if you choose a repayment term of 1.5 years, the total admin fee is $3,285 i.e. ($45.6 per week). If your property becomes vacant and it takes longer to pay Futurerent back, your admin fee does not increase. That’s one of the reasons why our clients love Futurerent: there’s no interest or penalties if the repayments take a bit longer.
We hate fees just as much as you do! We only charge the one admin fee described above. No establishment fees, late fees, penalties or nasty hidden fees!
Futurerent offers two packages, depending on how the money is being used. For each investment property you own, you can access:
- 2 years of rent upfront, if you use the money to help purchase an additional property. This can be repaid over 3 years.
OR
- 1 year of rent upfront, if you use the money for any other purpose, for example: renovating your own home or investment property, investing in a business, or buying shares. This can be repaid over 1.5, 2 or 3 years.
The maximum amount of rental income you can access upfront is $100,000 for each investment property you own.
Making repayments to Futurerent is simple. So simple, that you don’t have to do a single thing! Your property manager just sets up a monthly payment, which is paid to us from your ongoing rental income.
When you make your withdrawal request, you’ll be asked to choose a repayment term that suits you.
3 YEAR REPAYMENT TERMS:
If you want to continue receiving most of the rent each month, you may want to choose lower repayments over a longer repayment term.
1.5 YEAR & 2 YEAR REPAYMENT TERMS:
On the other hand, if you don’t mind receiving less rent each month, you may want to choose higher repayments over a shorter repayment term. This means your total cost will be lower because Futurerent is paid back faster.
Tip: Our most popular option is clients withdrawing 1 year of rent upfront, and a 3-year repayment term. This enables them to repay Futurerent from 33% of the monthly rent (plus the 6% Futurerent admin fee), and still receive 61% of the rent in their pocket each month. Getting started
Definitely not! Many lenders only give quotes or estimates before a customer applies, but 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 upfront
• what it will cost you on an ongoing basis
• the amount of rental income you’ll get after the repayments.
No. Unlike traditional lenders, 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.
Absolutely! Many of our clients use Futurerent across a number of their investment properties to maximise the amount of rental income they can access upfront.
Property management
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 all property managers. All they need to do is set up a monthly payment to Futurerent, in the same way they’d pay any other bill for you.
As we work closely with your property manager to ensure you’re paid your share of the rental income every month, we need you to have a property manager collecting the rent.
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 a tenant moves out or falls into arrears, your Futurerent repayments (including the admin fee) are automatically paused. If your tenant needs a rent reduction your repayments are proportionately reduced at no extra cost to you.
As usual, if your tenant moves out, your leasing agent 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. You can either repay Futurerent early or use the proceeds from the sale to pay us at settlement.
Legal and financial questions
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 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 hello@futurerent.com.au 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.
Talk to us
We’re free to chat during business hours. Or you can schedule a time for us to call you back when it suits you.