4 Min. Read

Rendity Review: Is it good? Don't invest before you read this! (2/2023)

Rendity

Rendity

Tegetthoffstraße 7, 1010 Wien

Test result

2.2 of 5

Invest now on Rendity

Safety

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1.50

Interest & Risks

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3.00

Features

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2.00

Advantages

  • Experienced platform

  • Automatic investment function

Disadvantages

  • Unregulated

  • Comparatively low Ø interest rates

  • No buyback guarantee

  • No secondary market

  • No app

How good is Rendity?

If that's what you want to know, then keep reading.

We took a close look at the platform and tell you whether it's worth it.

In this test, we show you:

What is Rendity?

Infographic: how does Rendity work

Rendity is a P2P platform from Vienna in Austria, founded in 2015.

The platform exclusively offers P2P loans that real estate developers use to finance their projects.

Since its inception, the platform has funded more than €100 million worth of loans, making it one of the smaller P2P platforms in Europe.

How does Rendity work?

If you want to invest on Rendity, you first need to register online and then deposit money via a bank transfer.

With your first deposit via a standard bank transfer, you also confirm the bank account to which withdrawals can be made.

However, you have to keep in mind that when investing manually, you need to invest at least €500, while when investing automatically, you are only required to deposit €100 per loan.

On Rendity there is only a primary market (initial issuance of loans) and unfortunately, there is no secondary market (loans from other investors) offered.

Features

In the following, we would like to present the most important features of the platform.

Regulation

The platform is not regulated by any financial market regulator.

And according to our current knowledge, this is not expected to change in the near future.

Loans

On average, the loans have an interest rate of 6.30% and loans are offered with a minimum interest rate of 3% to a maximum of 8%.

A comparison shows that the platform is below average with its average interest rates, and there are several platforms that offer higher interest rates.

Among the real estate platforms, these include Reinvest24 with about 17%, EstateGuru with about 11% and Profitus with about 9%.

On Rendity, you can only invest in real estate loans from Austria and Germany, which have terms of 18 to 48 months.

To assess the risk of each loan, the platform assigns risk classes (ratings) from E to A (low risk).

Manual investing

You can select each individual loan on the platform in which you want to invest.

Among other things, this makes sense if you are just starting to invest and don't want to wait for Auto Invest to invest for you.

But with manual investing, you have to consider a comparatively high minimum investment amount of €500, as mentioned at the beginning.

With automatic investing, you only have to invest €100 per loan.

Auto Invest (Savings Plan)

With the automatic savings plan function, you can determine within minutes in which loans you want to invest.

You can choose from three preset strategies that differ in return and risk:

  • Balanced,

  • Growth oriented and

  • Conservative.

You can also create your own strategy, where we think the most important settings are the following:

  • Investment Per Credit,

  • Interest rate,

  • loan term and

  • Rating.

All in all, Rendity's Auto Invest makes a good impression and is easy to use.

With just a few clicks, everything is taken care of.

The most important reason to use Auto Invest is the low minimum investment amount of €100 per loan.

Secondary market

There is no secondary market offered on Rendity.

This can sometimes be problematic.

Especially for real estate loans with longer terms of 3 to 4 years because you cannot get your money earlier.

Tax report

On Rendity, you can easily get the documents for your tax return.

A tax report is offered for each year, which you can download.

App

Unfortunately, the platform does not offer an app to manage investments.

At this point, we don't expect anything to change in the future.

How much does investing on Rendity cost?

For investors, Rendity is completely free.

The platform does not charge any fees for deposits, withdrawals or other transactions.

Warning signals (red flags)

Currently, we have not noticed any warning signals on Rendity.

Frequently asked questions

Below, we address some questions that are often asked about Rendity.

Rendity is unfortunately not officially regulated by a financial market regulator, which otherwise makes it easy to assess its safety.

For this, the platform has successfully financed loans in a sufficiently large volume, which speaks for a safe and legal business model.

And although Rendity is not regulated by any financial market authority, it is at least registered as a commercial investment advisor with the Austrian Chamber of Industry and Commerce.

For the above reasons, we have no doubt about the safety of Rendity.

How does Rendity earn money?

The platform makes its money mainly from commissions it charges real estate developers.

Otherwise, it has no revenue streams, as the use of the platform is free for investors.

Who owns Rendity?

The exact ownership structure is not known.

But we assume that the founders Lukas Müller, Paul Brezina and Tobias Leodolter hold a large majority of the company.

In addition, the venture capital fund aws Gründerfonds seems to hold shares.

Expert conclusion

Rendity could partially prove its safety as a platform with a financed loan volume of €100 million. Furthermore, the fact that the platform is registered as an investment advisor with the Austrian Chamber of Industry and Commerce speaks for its safety, but this did not enter into our overall evaluation.

The registration and also the subsequent deposit are uncomplicated, and fully automatic investments can be made via the savings plan (Auto Invest). Investors can choose a preset strategy, which makes it easier to get started.

But Rendity fails to convince us when it comes to interest rates. In fact, it is the platform with the lowest interest rates among all the platforms we reviewed.

Combined with the lack of regulation and other features that are important in our opinion, the platform cannot achieve a high overall rating.

Overall, we do not consider the platform to be recommendable.

Alternatives would be platforms with higher average interest rates, such as Reinvest24 with about 17%, EstateGuru with about 11% and Profitus with about 9%.

Invest now on Rendity

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Last updated on 05 October 2022