Frequently Asked Questions
About Futurerent
Futurerent gives property investors their rent in advance — the simplest and fastest way to access up to $100,000. Created for property investors, Futurerent is a loan-free financing solution with no interest, no hidden fees, and no credit impact. We've cut out all the typical drawbacks of traditional finance as we simply provide investors with access to their rent in advance, rather than lend money.
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 interest
- no late fees
- no credit impact
- funding in 2 business days
- you receive ongoing rental income throughout the term
- the ability to pause instalments if your tenant vacates or stops paying
At Futurerent, we've optimised our experience for property investors. We are the simplest and fastest way to access up to $100,000, without having to jump through all the hoops of traditional lending. This means there's no serviceability, or LVR assessment and none of the painful paperwork. We also don't impact your credit score.This is because all you're doing is accessing your rent in advance, not borrowing money.
Less paperwork also means less waiting around. We fund approved clients within 2 business days, so you can get your money sooner.
When it comes to costs, many people don't realise that topping up your mortgage can add a lifetime of interest to your home loan and often includes around $2,000 in transaction costs, like valuation and establishment fees. If you're on a fixed rate, topping up also typically results in significant break costs. You're also looking at potential LMI costs if your LVR is too high when topping up.
Given we are not a loan, Futurerent is an intrinsically different product from top-up mortgages, and this should be considered when making any financial decisions.
How does Futurerent work?
We charge a fixed cost of 7.5% per year on the rent advanced.
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 be $225 per month ($2,700 per year).
The total cost would be fixed at $8,100 over a term of 3 years ($225 per month x 36 months).
Unlike interest payments, your cost is fixed and doesn't change, meaning if you are unable to find a tenant and are without rental income, the instalments are paused and the cost doesn't increase. Your total cost won't change; we simply extend the term by the amount of time you paused the instalments for.
For example, if during your 3-year Futurerent term you have a vacancy which causes 2 months of no rental income, your total Futurerent term will become 3 years and 2 months, instead of 3 years. Despite the longer term, the instalments don't increase.
That's one of the reasons why our clients love Futurerent: there's no interest or penalties if it takes a bit longer to pay us back.
However, if you do repay us early, it still comes with your fixed cost (though unlike the banks, we never charge early termination fees).
We only charge the one fixed cost described above.
Futurerent offers two packages, depending on how the money is being used. For each investment property you own, you can access:
- Up to 2 years of rent in advance, if you use the money to help purchase an additional property.
This can be either a new investment property or a new primary place of residence.
OR
- Up to 1 year of rent in advance, if you use the money for any purpose, for example: renovating your own home or investment property, investing in a business, debt consolidation, increased cash flow or buying shares.
The maximum amount of rental income you can access in advance is $100,000 for each investment property you own.
The instalments to Futurerent are simple. We connect directly with your property manager who manages all the Futurerent payments, including the 7.5% cost of Futurerent per year. Your property manager just sets up a monthly payment, which is paid to us from your rental income.
If you access 1 year of rent in advance, you can choose between a term of 1.5, 2 or 3 years.
If you want to continue receiving most of the rent each month, you could choose to pay instalments over a term of 3 years. Here's how a 3-year term might look, when you access 1 year of rent in advance:
Your property manager will set up automatic payments that repay Futurerent from 33.3% of the monthly rent, plus the 7.5% fixed cost on the rent advanced.
This means you still receive 59.2% of the rent in your pocket, each month.
Your property manager will set up automatic payments that repay Futurerent from 33.3% of the monthly rent, plus the 7.5% fixed cost on the rent advanced.
This means you still receive 59.2% of the rent in your pocket, each month.
If you access 2 years' rent in advance, the only term available is 3 years. Here's how your instalments will look:
Your property manager will set up automatic payments that repay Futurerent from 66.7% of the monthly rent (plus the 7.5% fixed cost on the rent advanced). This means you still receive 25.8% of the rent each month.
If this is not enough to cover your mortgage repayments, property management agency fee and other monthly expenses, you can either cover the shortfall on those expenses from your personal savings or access less than 2 years, so that you have more left in your 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 in advance
• what it will cost you on an ongoing basis
• the amount of rental income you'll get after instalments.
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 in advance.
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 instalments (including the fixed cost) are automatically paused. If your tenant needs a rent reduction, your instalments 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.
You can pay Futurerent back early anytime – unlike traditional lenders, we never charge penalties or late fees! All you need to pay is the fixed cost fee agreed to at the start.
This is because Futurerent's cost is fixed, meaning you don't pay more if it takes longer to repay Futurerent for any reason. However, if you do repay Futurerent early, it still comes with that fixed cost.
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.
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 Futurerent repayments as an expense, which reduces their rental income available for debt service until we are repaid (our terms are maximum 3 years).
From the bank's perspective, the good thing is that Futurerent is not a loan, which has three important implications:
- Futurerent is generally only repaid from a portion of the rental income that is actually earned from the property. This differs to a loan where borrowers are required to make payments regardless of the circumstances.
- Futurerent's cost is fixed, meaning if it takes longer to pay back because the property is vacant, it doesn't cost you any more.
- Futurerent does not have a mortgage over the property.
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.