Investing in rent prepayment involves acquiring, together with other investors, the right to a share of the future rental income from a let property, enabling the owner to receive this income in advance. Instead of buying a property, you receive your share of the rent each month, as the tenant pays it over the term of the arrangement.
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Frequently asked questions
Each opportunity includes detailed information about the property, the tenancy agreement and the associated payment history, the term of the investment, the risk profile and the supporting documentation verified by Daskapital.
Before publishing an opportunity, Daskapital assesses the landlord, the property and its registration status, the tenancy agreement and the tenant’s payment history. The main risk is late or non-payment of rent, or the property becoming vacant, which may delay or reduce the amounts received.
The return results from the discount: the landlord immediately receives an amount lower than the total rent paid in advance, and the difference constitutes the investors’ return. The discount is set by auction, just as with Daskapital’s other solutions: each investor specifies the amount they wish to invest and the minimum return they require.
The tenant pays the rent directly into an account on the Daskapital platform. The amounts are distributed amongst investors in proportion to their investment and credited to their respective accounts, usually on a monthly basis, in accordance with the payment schedule set out in the tenancy agreement.
The assignment is not limited to the current tenant’s rent: it covers all income generated by the property during the term of the transaction, including rent from new tenancy agreements and the proceeds from any sale of the property, up to the agreed maximum amount. The owner further declares and guarantees that they are the sole owner of the property, that the rent is free from any encumbrances or charges, and that there is no rent in arrears, and undertakes contractually to collect the rent and to ensure the property’s profitability. In the event of the owner’s death, the contract remains in force and is transferred to the heirs.
Applications may be made by private landlords, companies, property holding companies, property developers or other entities that own properties with eligible tenancy agreements.
Tenancy agreements relating to residential, commercial or industrial properties may be considered. To be assessed, the agreements must be active, have a documented payment history and be accompanied by the necessary documentation for the assessment of the transaction. The tenancies must also be free from any encumbrances or charges, and there must be no rent arrears.
Currently, it is possible to receive up to 12 months’ future rent in advance, subject to assessment and approval of the transaction.
Submitting an application is free of charge. The main cost is the discount applied to the advance rent payments, which remunerates investors and is determined by auction: you set the maximum discount you are willing to accept, and investors bid to acquire the rent payments, so the final discount may be lower. Added to this amount is Daskapital’s commission, which is charged only if the transaction is completed.
