How do rental projects work at Urbanitae? At Urbanitae, we launched this new type of rental project in early 2023, allowing our investors to participate in real estate projects and benefit from the generated rents. In this article, we explain in detail how these projects work and the advantages they offer.
Structure of rental projects
For each rental project, a new company or investment vehicle (SPV) is created. This entity owns the real estate asset in which the investment is made. Investors, by participating, acquire shares in this company, thus becoming shareholders and, therefore, co-owners of the property.
Investment in these projects is used to purchase real estate assets that generate monthly rents. These rents come from lease agreements signed with tenants or operators. Finally, the income generated is distributed among investors after deducting operational expenses of the asset, management costs of the company, and corresponding taxes.<h2>
Profitability and security
Historically, our projects have achieved an average annual return of 17%, net of expenses and fees, compared to the gross return of 7% typically offered by housing investment.
Our line of rental projects is designed for investors with a higher risk aversion or those seeking recurring income with low risk. In these projects, assets are usually commercial premises located in consolidated areas with solvent tenants and long-term lease agreements. Profitability is obtained in two ways:
Periodic rents: investors receive quarterly dividends derived from the lease of the asset, with annual net returns of between 5-6%.
Capital gains at the end of the period: at the end of the investment period, typically five years, the property is sold and the generated capital gains are distributed among investors.
Real estate crowdfunding
Real estate crowdfunding allows many people to participate in investments that would otherwise be inaccessible due to high entry barriers. At Urbanitae, the minimum investment is 500 euros, allowing investors to become owners of a part of the property and access generated returns proportionally.
This model has some clear advantages:
Accessibility: no need to incur debt or spend time on procedures.
Diversification: with a relatively small investment, it is possible to diversify into multiple properties, thus reducing risk.
In conclusion, rental projects through crowdfunding offer an innovative and accessible way to invest in the real estate market, providing periodic rents and capital gains at the end of the investment period. With a clear structure and professional management, these projects are designed for investors seeking stability and long-term profitability. Investing in Urbanitae is an opportunity to diversify your portfolio and earn recurring income with moderate risk. Start investing with us today and discover the benefits of rental projects!
