Rental and Maintenance

Rent Collection and Rental Yield

Realink Custody collects rent from the tenants, and pays the rent to the Realink DAO, which places the rent in smart contracts that allow all token holders to collect. Rent distributions start within two business days of the initial property sale being completed.

Rental yield will be disbursed monthly to all BNFT owners, minus the management fee. Fractionalized BNFT's rental yield will be split proportionally between fraction owners. Realink Custody endeavors to lease all BNFT-backing properties, whenever possible.

At initial purchase of a Real Estate BNFT, 5% of the purchase is moved into a vacancy reserve, to support continued rental disbursement during periods without an active lease. If the reserve capital fall below 5% of the property valuation, a recurring 20% of rental yield will be held back until the vacancy reserve is replenished. If the reserve become completely drained, 100% of rental yield will be put towards replenishing the reserve. If a property fail to rent, Realink may decrease the rent to find a tenant. (Conversely, should market demand grow, Realink may increase the rent.) If an owner take possession of and redeem the BNFT, all capital in the vacancy reserve would revert to the owner with the property.

Management Fee

Realink manages the properties for an annual fee of 5% of the property value. This includes ensuring the property is leased as consistently as possible, informing owners of any repairs required (when relevant), overseeing any repairs required. Realink will also manage redemption requests, transferring ownership to a named person or new legal entity, for an additional fee.

Maintenance and Repairs

At initial purchase of a Real Estate BNFT, 5% of the purchase is moved into a maintenance reserve. This reserve will be accessed should any repairs or maintenance, including possible major costs both planned and unanticipated, become necessary. (Repairs and maintenance covered by property insurance will not affect the maintenance reserve.) If the reserve capital fall below 5% of the property valuation, a recurring 50% of rental yield will be held back until the maintenance reserve is replenished. If the reserve become completely drained, 100% of rental yield will be put towards replenishing the reserve. Invoices and quotes for repairs above $100 will be uploaded to the real estate owner’s portal. If an owner take possession of and redeem the BNFT, all capital in the maintenance reserve would revert to the owner with the property.

Insurance

All BNFT properties are fully insured. Insurance costs will reduce monthly yield, although the advertised BNFT yields are adjusted to reflect this cost.