Rendity review 2020
Check out our Rendity review, and see if the platform is for you.
Overview of Rendity
We find the return compared to the safety favorable.
The Rendity platform is beginner-friendly.
Rendity has made some safety measures.
Investors get an average return of 6.10%.
We Don’t Like
Summary: Rendity is among very few platforms to offer exposure to Austrian and German real estate for small investors. They are very transparent and allows investors to check and download important documents. The platform is only available in the European Union. However, if you are not from the EU, you can actually get exposure to Rendity projects by using the real estate aggregator EvoEstate.
Get an extra €25 signup bonus on the platform
Last updated: October 20, 2020
Introduction to our Rendity review
With Rendity, you can invest in real estate from Austria and Germany. But is it really worth using their platform? We decided to investigate.
So if you are considering investing through the platform, we recommend that you read this Rendity review first. Here we take a look at the good, the bad, and the ugly. We promise you, that you will get a better feel for the platform through reading our review.
Note: If you decide to use Rendity, you can get a €25 signup bonus by clicking this link. That is a referral link we got from the platform. If you use the link, you will at the same time support our website.
Our Rendity review ended up being a bit long. You can, therefore, choose to use the navigation below to find exactly what you are looking for. Of course, you are also more than welcome to read the entire review. However, please note that the review only expresses our own opinion. Therefore, do not consider the content of this Rendity review as financial advice.
Learn about the following in our Rendity review:
What is Rendity?
Rendity is a FinTech company from Vienna – the capital city of Austria – that enables smaller investors to invest in real estate in both Austria and Germany. They do so by sourcing deals from over 20 real estate developers and letting investors invest in these projects.
The platform was launched in October 2015. Since then over 3,700 investors have joined their platform to crowdinvest in 77 projects.
The investors on the platform are on average 42 years old. They consist of around 76% small investors, 1% companies, and 23% large investors. In the past few years, there has been a big increase in large investors. Most investors are from Austria, Germany, France, Netherlands, and Switzerland.
If you want to invest on Rendity, you can, with as little as €500, open an investment account on their platform.
In the following part of our Rendity review, we will explain some of the main features on the platform, and why they are important for you as an investor.
1. Rendity robo invest
If you are unsure about how you should invest on the platform, you can use the Rendity robo invest feature to help you create an investment plan.
By answering a few questions about your current situation and your investment goals, you will be able to get recommendations of which products you should use on Rendity. The result will at the time of writing either be Rendity Income or Rendity Growth.
You can try out the feature on Rendity’s website.
2. Detailed project descriptions
Something that makes Rendity stand out a lot from other platforms is their detailed project description. To make you get a feel for this, let’s take a look at one of the projects called Karlstraße 3.
For each project on Rendity, you will be able to get a brief overview:
You will be able to see the expected return and the duration of the project. Furthermore, you will see that this particular project type is rental real estate, and the distribution is quarterly (which means that the interest is distributed to the investors on a quarterly basis). The rating for this particular project is A. You will learn more about the ratings later in this Rendity review.
Diving a bit deeper into the project on Karlstraße 3, you will be able to read a project presentation.
Most of the project presentations on Rendity sound a bit like sales pitches. However, you will be able to find a bit of useful information and get to know where the project is located.
The deal highlights for the projects can give you a quick overview of what you get at a particular investment:
In regards to Karlstraße 3, it’s MAGAN Group that is behind the project. The current annual rental income is €133,000 and a low vacancy rate is expected. Furthermore, a bit about how you will be paid as an investor is explained as well.
On each project you will also be able to find an investment case:
In the investment case, it is explained what the purpose of the investment is, and how things will be going forward.
Under each project, you will also be able to find a documents section.
In regards to Karlstraße 3, both “Exposé” and “Vermögensanlagen-Informationsblatt (VIB)” were only available in Deutsch. However, the information in these documents was already mentioned in the English project description.
In the “Fact sheet”, you can find a risk notice and more in English.
The finance structure of a project is also made very easy to digest as shown in the visuals below:
As you can see, the majority of the funding in Karlstraße 3 project is actually coming from both equity and a bank loan. Only €750,000 is coming from Rendity.
If you were wondering, “Gesamt” means “in total” in Deutsch.
You will also be able to see the Rendity rating of each project. This rating is based on a lot of factors which will be explained later in this Rendity review.
Karlstraße 3 has achieved an A-rating based on the factors shown above.
All the above information is not everything you will be able to learn in the project descriptions. You will also get to know about the tenant structure, the investment case for the particular country the investment is located in, the team behind the project, and much more.
If you want to see these things for yourself, you can check out the currently available projects on Rendity’s website.
3. Rendity rating
Previously in this Rendity review, we have already touched a bit on the ratings. However, we think it is a feature that is important for you to know more about.
The Rendity rating ranges from A to E, where A is the lowest risk, and E is the highest risk.
The Rendity rating is determined by the following scoring system, where an A-rating will be obtained if the total number of points add up to 6-8, a B-rating will be obtained if the total number of points add up to 9-11, and so on and so forth.
It is important that you keep in mind that the Rendity rating is indicative, and based on the scoring system shown above. The scoring system also isn’t very similar to ratings given by rating agencies like Moody’s. So the score given to a particular project doesn’t necessarily say something about the true risk of it compared to other projects.
What rate of return can you expect?
At the time of writing the average annual return is 6.10% on Rendity. The return will depend on the investments you select on the platform.
If you seek a higher return with real estate investments you might want to check out our EstateGuru review. On that platform, the average return is around double of what it is on Rendity. However, the projects are mainly from eastern Europe – but sometimes you will also be able to find projects from Germany.
Who can invest via Rendity?
In order to invest via Rendity you must meet the following requirements:
- Be a least 18 years old
- Have a valid bank account within the EU
If you meet the above requirements, it’s easy to get started at Rendity. Simply follow the steps below, and then you should rather quickly be able to invest:
- Create an account
- Add funds to your account
- Invest in real estate
If you want to become a Rendity investor, simply press the button below to set up an account. It’s probably the quickest way to go from reading this Rendity review to actually investing yourself:
How safe is Rendity?
One of the most important things when investing your money online through Peer-to-Peer investing platforms is that security is in order. Therefore, in this Rendity review, we have taken a look at the safety on their platform.
How safe are the investments?
The safety of the investments varies a lot depending on what type of investment you pick. Some investments are secured with different sorts of collateral, which means that if the project goes south, you will probably still get some of your invested principal back.
As you are dealing with real estate when you invest in Rendity, you do also take on real estate related risks. So in the event of, for example, a real estate crash, your investments could potentially lose their value.
Rendity is an authorized financial advisor and has to comply with strict obligations according to the Small Investor Protection Act or rather the Alternative Financing Act (“AltFG”).
Conclusion of our Rendity review
Rendity is definitely standing out from the crowd of real estate crowdfunding platforms in Europe. Where other platforms mostly offer projects in the Baltics, Spain, and the UK, Rendity is offering projects from Germany and Austria. Therefore, you will only be able to find very few competitors to Rendity in these areas. However, the downside to investing in Germany and Austria is that the return is also lower than on other platforms.
With that said we really like the platform, and the fact that they offer exposure to both Germany and Austria.
But if you want more diversification than what can be found at Rendity, then you might want to consider taking a look at the European real estate aggregator EvoEstate. On that platform, you can find a lot of the projects on Rendity. But you will also be able to find projects from other platforms. Furthermore, there is also a secondary market for an early exit – something that Rendity lags.
Would you like to sign up as an investor on the platform after reading about our Rendity review? Then press the button below sign up and get started: