Why Rent + Equity?

How does Rent + Equity work?

It's similar to normal renting, but with an added community-building component that we've seen create a better experience for renters. When you rent from a Provito-managed or owned rental property, you'll be entered into our Rent + Equity program. Each month that you attend a monthly community meeting and follow the Provito rules of paying rent on time, not being a jerk, etc, then a portion of your payment will go into an equity account for you with fellow renters. The amount fluctuates based on maintenance, wear, and damage to the building, but our long-term goal is to beat a 30 year mortgage.

What am I building equity in?

Currently, everyone's equity accounts are accumulated to purchase additional rental properties, of which you'll have a portion of ownership stake. Our longer-term goal is for equity potion of your rent payment go towards both the unit you're in, as well as a wider portfolio of properties. 

What happens when I leave?

After your two year vestment period, you'll be able to request a withdrawal of the account, minus transaction and liquidation fees. A large benefit of home-ownership is the long-term nature of the investment, and Provito works similarly where the best returns will happen with a long-term approach. 

Rent to REIT - for Renters

We offer a way for renters to become diversified real estate investors. Renters in good standing build shares of ownership in Real Estate Investment Trusts (REITs) as part of their monthly rent payment. After 6 months, renters can begin to access the capital behind these shares while also receiving dividends on their investment. Like buying a home, the investment starts small, but snowballs in future years. Unlike buying a home though, you don't have to pay a hefty transaction fee every time you move. In fact, your shares continue to pay you out dividends for as long as you choose to carry the investment.

Ultimately, we envision a world where people are able to grow their real estate investments while having the flexibility of moving as life takes them, all without the debt burden of owning a home. 

Better than Homeownership

Build equity without the debt. Move without the heavy fees. Live without worrying about replacing the furnace and roof. Our Rent to REIT model is designed to be a better choice than buying a home for most renters. Sometimes, if someone plans on staying in the same area for more than 5 years and living in the same spot with the same square footage, then home-ownership may be a better option. Realistically, most people aren't likely to stay so static, so we're offering the rest of us a way to get more out of life. Especially with so many people paying student loans and saving for a down-payment, it can take years before someone has enough capital to become homeowners.

We buck that trend, and allow people to begin building real estate wealth even while they're paying for their first apartment. And sure, our renters can sell their investment for a down-payment on a home, but we're focused on being the better long-term solution for many renters and even some homeowners.

Doubles as an Emergency Fund

One challenge for many renters is building an emergency fund to cover when things go bad. With the median net-worth of renters being about $2,000 (while homeowner's median is about $200,000), many people struggle just to keep afloat.

Our model has an amazing perk where renters can access their REIT investments as an emergency fund of sorts, starting after 6 months. Through a financing partner, renters can access 80% of their investment as a secured loan with extremely favorable rates.

While not every renter needs this feature, it's still something that can help many people get away from payday loans and credit cards as they build financial independence.

Actual community 

One secret ingredient to make all of this work isn't just the financial benefit for renters. It's also in the intangible that comes from our network of renters getting together, improving their neighborhoods, and becoming a bigger part of their communities.

Our monthly community meetings are a place for renters to get better connected into their community, to pick upgrades for their buildings, and to learn how to do more.