We understand that tenants are sometimes late, short, or simply can’t pay. That’s why if tenant moves out, falls into arrears, or needs to pay a lower rent, the repayments are automatically paused, or proportionately reduced at no extra cost to you. As usual, if the tenant moves out, the property manager will need to find a new tenant.
Under the agreement that Futurerent has with you, we have a lot of the same rights that you usually have as a landlord to make sure the property manager does their job. Although we have these rights, we generally leave it to the property manager to handle things and it’s very rare for us to get involved.
A simple flat fee on the withdrawn amount of 0.5% per month over the expected term is collected from the rent paid by your tenant. For example, if your property is rented for $700 per week, you can withdraw $36,500 upfront for a flat fee of $42 per week from the rent paid by your tenant (i.e. $36,500 withdrawn multiplied by 0.5% per month is $182.50 per month, or $42 per week).
We calculate what this flat fee works out to over the expected term upfront and fix it. For example, if you choose a repayment term of 1.5 years, the total flat fee is $3,285 i.e. $182.50 per month multiplied by 18 months). This means that if your tenant moves out and the property is vacant and it takes a bit longer to pay Futurerent back, it doesn’t cost you any more than what you expected it would upfront. That’s one of the reasons our clients love Futurerent, there’s no interest or penalties if the repayments take a bit longer.
When you make your withdrawal request, you’ll be asked to choose a repayment term that suits you. If you want to make the repayments low so you can continue to get the majority of the rent, you may want to choose a longer repayment term. On the other hand, if you don’t need a lot of rent after the withdrawal, you may want to choose a shorter repayment term, which will mean higher repayments but a total cost that’s lower because the Futurerent is paid back faster.
Otherwise, the repayments are simple. Your property manager just sets up a monthly payment, which is made from the rent collected from the tenant.
All we need is your driver’s license, or passport number and you and your property managers contact details. From your property manager, we’ll get a copy of the lease (if there is one) and your property management agreement.
We work with all agents. All they need to do is setup a monthly payment, in the same way they’d pay any other bill for you.
Futurerent is a new Australian fintech that lets landlords withdraw a whole year’s rent upfront, so you can manage your cashflow and get ahead.
Instead of waiting for your rent to trickle in you can get what you want on demand and let your tenant pay it back on terms that suit you.
Futurerent is designed specifically for landlords cashflow needs, which means we have landlord friendly features built in, like repayments that pause when your tenant stops paying and no interest or late fees.
Because all you’re doing is withdrawing your future rent, we don’t need to worry about all the things that the bank does, like your income or how big your loan is.
Until now the only other options that investors had was to refinance their entire loan or take out a prickly personal loan. Refinancing is difficult and a blunt solution – for example, it might mean refinancing a $500,000 loan when you only need $30,000, breaking a fixed rate, or switching to ‘interest only’ and adding years in interest to your loan.
Absolutely, we have a lot of clients who use us for a number of investment properties.
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 email@example.com 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.
We enter into a type of lease 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.
For practical reasons, we need you to have a property manager collecting the rent. If you are self-managing to save on property management fees, we suggest you still apply as we have a number of property managers we work with who may be able to offer you a heavily discounted rate if you come through us.
That’s fine, plans change. We just ask that you let us know and keep us in the loop. You can either pay Futurerent out early, or from the proceeds from the sale at settlement of 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.