Question 1

What does PublicSquare do?

Accepted Answer

PublicSquare is a licensed real estate agency in Queensland and New South Wales, and the creator of Rent-to-Sell™. We act for homebuyers as their buyer's agent. When one of our pre-approved homebuyers finds your home listed for rent, we prepare an offer showing exactly what you'd receive: the listed rent plus an additional 50% extra cash flow on top of your normal market rent each week, a long-term tenant who wants to buy, and a sale to that tenant in years 4 to 8. You aren't our client and you pay PublicSquare nothing. Your own agency keeps managing the property.

Question 2

Is PublicSquare legitimate?

Accepted Answer

Yes. PublicSquare is a licensed Australian real estate agency (Queensland licence 4555627 and New South Wales licence 10152702), operating since 2021 from Brisbane. Rent-to-Sell runs on written contracts you receive in full before you sign, and we encourage independent legal and financial advice. Title stays in your name for the whole term and your own agency keeps managing the property. PublicSquare acts for the homebuyer, charges you nothing, and never holds your property, your rent or your sale proceeds.

Question 3

What kind of properties does Rent-to-Sell work with?

Accepted Answer

Typically homes in Queensland and New South Wales that are listed for rent. A PublicSquare homebuyer finds your home on realestate.com.au and asks your property manager whether you'd consider renting it on a Rent-to-Own basis. You can also list your home with PublicSquare directly, and we can feature it to pre-approved homebuyers in your area. The only requirement is that the home is in Queensland or New South Wales and on a single title, such as a standard house, townhouse or apartment.

Question 4

How does the extra 50% work?

Accepted Answer

On top of the listed rent, the tenant pays you an additional 50% each week. Both are paid together by direct debit into your property manager's trust account each Thursday and reach you with the rent, the way your rent does now. The extra amount is 50% of the year-one weekly rent and stays the same for up to eight years, or until the tenant buys. When the tenant buys, their contributions are credited to them as their deposit. Until then, the cash flow is yours to use: covering property costs, topping up an offset account or building a deposit for your next property.

Question 5

What's the catch for a landlord?

Accepted Answer

Four trade-offs, stated plainly. The tenant's contributions are credited to them when they buy, so they lift your cash flow during the term rather than adding to the sale price. Rent reviews are capped at 4% a year, so a traditional re-let could earn more if market rents rise faster. You sell inside the tenant's purchase window, years 4 to 8, so it's less flexible than a standard lease if you want to sell in year two. And a tenant may not complete, in which case the home is sold on the open market and the agreed minimum price still protects you. In return you get an additional 50% extra cash flow on top of your normal market rent, one long-term tenant who wants to buy, and a sale at no less than the agreed minimum price with no cap on the upside.

Question 6

Does the rental portion go up each year?

Accepted Answer

The rent is reviewed every 12 months. Your property manager prepares a new rental appraisal and the rent is updated in line with it, with each increase capped at 4% or the maximum allowed under state tenancy law, whichever is lower. The cap is a ceiling, not an automatic increase. The tenant's additional 50% stays at the year-one amount for the whole term.

Question 7

Are the tenant's deposit contributions held on my behalf, or are they mine to use?

Accepted Answer

They're paid to you each week with the rent, through your property manager's trust account, and they're yours to use: offset, reinvestment or anything else. They aren't held in escrow. When the tenant buys, the contributions they've paid are credited to them as their deposit.

Question 8

When can the tenant buy the property?

Accepted Answer

The tenant can buy from year 4 of the lease until three months before the end of year 8. Most tenants plan to buy in year 6, 7 or 8, once they've built a larger deposit to move to a mortgage.

Question 9

How does the final sale price work?

Accepted Answer

Two things set it: the agreed minimum price for the year of sale, and an independent valuation by a licensed valuer at the time. The tenant pays whichever is higher. You're protected by the agreed minimum, and you keep the full upside if the valuation is higher.

Question 10

What if property prices fall?

Accepted Answer

The contract sets a minimum price using a floor growth rate on the initial home value: 8% a year if the tenant buys in year 4, stepping down to 4% a year in year 8. At sale you receive the higher of that minimum or an independent valuation, so a fall in the market doesn't by itself reduce your sale price, and the upside isn't capped. Australian house prices grew at an average of 6.8% a year, compounding, from 1993 to 2018. By years 7 and 8 the minimum (5% and 4% a year) sits well below that long-term average. The minimum is a term of the Contract, not a guaranteed return: a sale to the tenant can't complete below it, and if the tenant can't complete, the home is sold on the open market with any shortfall below the minimum taken from the tenant's contributions. These rates apply to houses. Apartments and townhouses typically grow more slowly, so lower minimum growth rates may be set for those properties, with the Contract of both parties.

Question 11

Can the tenant be forced to purchase at the minimum resale floor?

Accepted Answer

No. The tenant holds an option, not an obligation. If they buy and the independent valuation comes in below the minimum, the price is simply the minimum, and their contributions are credited to them as their deposit. A shortfall is only taken from contributions where the home is instead sold to a third party. Where the home is sold to a third party, a shortfall below the minimum is covered up to the amount of the tenant's contributions.

Question 12

Is the valuation a full inspection or a desktop estimate?

Accepted Answer

A full site valuation. A certified independent valuer, appointed by the seller, attends the property in person and researches comparable sales and listings in the street, neighbourhood, and area, along with the property's special features — producing a complete market valuation rather than a desktop figure.

Question 13

What if I don't agree with the valuation?

Accepted Answer

If you disagree with a valuation you have 10 days to object in writing, and you must agree to bear the cost of a Second Opinion Report from a different certified valuer. If that second report is contested, a third is commissioned and the final figure is the average of the three. All valuers are independent and certified, appointed by the seller, and conduct full site inspections — physically visiting the property and researching comparable sales and current listings in the area.

Question 14

What if I don't want to sell?

Accepted Answer

Rent-to-Sell suits owners who are comfortable with a 4 to 8 year horizon. Tenants are most likely to buy in years 6, 7 or 8, and the agreed minimum prices in the earlier years are set above the initial home value, so an earlier purchase still gives you a profitable exit. Property still carries risk, including poor or negative market growth, so review the numbers with your own adviser.

Question 15

What if I want to sell earlier?

Accepted Answer

The contract includes a novation clause. It lets you sell the property to a third party, but only with the tenant's prior written consent (which can't be unreasonably withheld) and where the new owner signs a deed, on terms acceptable to the tenant, agreeing to be bound by the existing agreement. You can also ask whether the tenant is ready to buy early. Because the property is earning the listed rent plus an extra 50% each week, holding it and letting it keep growing is often the better outcome.

Question 16

What do tenants get out of this?

Accepted Answer

Quite a lot, which is why the model works. They get a structured path to owning the home they live in, years before they could otherwise afford to buy. They move in without a deposit, stamp duty or LMI. Their weekly cost is often more manageable than repaying a high-LVR mortgage. And they get long-term housing security, with a lease of up to eight years. With over 70,000 household applications received since launch, demand from homebuyers is strong across most of Queensland and New South Wales.

Question 17

How does PublicSquare qualify tenants?

Accepted Answer

Homebuyers complete PublicSquare's pre-approval, a self-assessed check of household size, income against a minimum for the area, savings of at least $10,000 and the program's other rules. Your property manager then runs their usual tenancy application and reference checks, as for any tenant, and you decide whether to go ahead. Before signing, the homebuyer must get independent legal advice on the agreements.

Question 18

Do tenants pay a bond?

Accepted Answer

Yes. Tenants pay a bond under the standard tenancy rules, lodged by your property manager with the state bond authority, as with any tenancy.

Question 19

What if the tenant misses payments?

Accepted Answer

Your property manager handles arrears as they would for any tenant, under Queensland or New South Wales tenancy law, including breach notices and, if needed, notices to vacate. The homebuyer's PublicSquare rep will also encourage them to get back on track. If the tenancy ends because the tenant breached the Contract, you keep full title and the contributions you've received stay with you.

Question 20

What if the tenant doesn't want to buy?

Accepted Answer

You keep the property either way. If the tenant chooses not to buy and the term ends without a purchase or a sale request, or the tenancy ends because they default, the contributions you've received stay with you. If they want to buy but can't get finance, they can ask for an open-market sale instead (see "What if the tenant can't get a mortgage?"): their contributions are then repaid from the sale, less any shortfall below the minimum price. PublicSquare's fee is owed by the homebuyer; you never pay it and it never comes out of your proceeds.

Question 21

What if the tenant can't get a mortgage?

Accepted Answer

From year 4, the tenant can request an open-market sale by giving written notice supported by written declines from three different lenders or brokers (each dated within 60 days), as long as they aren't in default. The home is then sold through the nominated sale agent, which is your property manager's agency. The tenant pays the $3,300 marketing cost, and you pay the sale commission under your usual arrangements with that agency. If the home sells at or above the minimum price, the tenant's contributions are returned to them, less any amounts still owing. If it sells below the minimum, the shortfall comes out of the tenant's contributions, so a shortfall is covered up to the amount of the tenant's contributions. Anything above the minimum is yours. Instead of selling, you can choose to keep the home: its independent valuation is treated as the sale price (so any shortfall below the minimum still comes off the tenant's contributions), and you pay the tenant's exit balance within 30 days.

Question 22

Can tenants renovate the property?

Accepted Answer

No. Just like a standard rental property, tenants must obtain your approval as the property owner before conducting any renovations or improvements.

Question 23

Who pays maintenance costs?

Accepted Answer

As with any rental property, maintenance and repair costs that can't be claimed on insurance are the owner's responsibility, along with council rates, building insurance and body corporate. Owners need appropriate landlord insurance.

Question 24

Does Rent-to-Sell change my finance?

Accepted Answer

No. Your existing loan stays as it is, with any broker or lender you choose. No specialist finance is needed.

Question 25

Will this increase my borrowing capacity?

Accepted Answer

In our experience, this model does not increase your initial borrowing capacity — lenders assess the property the same way they would a traditionally leased investment property. However, some clients have reported improved borrowing capacity once the lease is in place, as the lease agreement documents the full weekly cashflow amount, which some lenders take into account.

Question 26

Can I refinance or draw equity during the contract term?

Accepted Answer

Yes. You keep legal title and you can refinance freely — replacing one first mortgage with another is expressly contemplated, and the tenant-buyer's consent cannot be unreasonably withheld. The consent requirement exists to stop the property being encumbered in a way that would defeat the tenant-buyer's option, not to restrict ordinary lending. You do need to maintain at least 20% equity net of liabilities for the term. Refinancing remains subject to your lender's own credit assessment. (Note the serviceability nuance below.)

Question 27

Will lenders recognise the deposit contributions for serviceability?

Accepted Answer

At this stage, lenders are unlikely to count the additional Rent-to-Sell contributions when assessing your borrowing. Some owners have reported improved serviceability and refinancing options once the lease is underway, because of the higher cash flow.

Question 28

Can I use the property as security for other lending?

Accepted Answer

Yes. As legal owner you can use the property as security for other borrowing, subject to your lender's approval. You keep legal title and you can refinance freely — replacing one first mortgage with another is expressly contemplated, and the tenant-buyer's consent cannot be unreasonably withheld. The consent requirement exists to stop the property being encumbered in a way that would defeat the tenant-buyer's option, not to restrict ordinary lending. You do need to maintain at least 20% equity net of liabilities for the term.

Question 29

Who will be on title?

Accepted Answer

The title remains in your name throughout the lease term — whether that's an individual, trust, company, or SMSF. You keep legal title and you can refinance freely — replacing one first mortgage with another is expressly contemplated, and the tenant-buyer's consent cannot be unreasonably withheld. The consent requirement exists to stop the property being encumbered in a way that would defeat the tenant-buyer's option, not to restrict ordinary lending. You do need to maintain at least 20% equity net of liabilities for the term. The tenant may also register the lease (with the call option deed annexed) on the title — registration is optional and is permitted under the Contract Between Buyer and Seller.

Question 30

How do the tax benefits work?

Accepted Answer

Rent-to-Sell keeps the standard tax treatment of owning an investment property, including depreciation, negative gearing and capital gains tax (CGT) discounts where they apply. The additional 50% payments are structured as interest-free loans from the tenant to you, rather than rental income, and are credited to the tenant as their deposit when they buy. Everyone's circumstances differ, so get advice from your accountant.

Question 31

Can I run this past my adviser or accountant?

Accepted Answer

Yes, and we encourage it. You can share the Contract Between Buyer and Seller, the Call Option Deed and the figures in the homebuyer's offer with your accountant, adviser or solicitor before you sign. PublicSquare acts for the homebuyer, so we can explain how the program works but can't advise you.

Question 32

What agreements will I sign?

Accepted Answer

You sign a Contract Between Buyer and Seller with the homebuyer, which includes the Call Option Deed, and a standard tenancy agreement for your state (the REIQ or REINSW template), managed by your agency as usual. Where the owner is a company or corporate trustee, the directors sign as guarantors. When the tenant buys, you sign a standard REIQ or REINSW contract of sale. You don't sign any appointment with PublicSquare.

Question 33

Can I see copies of the contracts?

Accepted Answer

Yes. When a homebuyer wants to rent your home, PublicSquare, acting for the homebuyer, sends you an offer, and you receive the full agreements to review with your own solicitor before you sign. You can also download a plain-English summary of the key terms.

Question 34

Do I have to appoint PublicSquare to manage or sell the property?

Accepted Answer

No. Your own agency keeps managing the property as usual. The Contract nominates your property manager's agency as the sale agent when the home sells, and you pay that commission under your usual arrangements with them. You don't appoint PublicSquare and you pay PublicSquare nothing.

Question 35

Who represents me for the eventual sale?

Accepted Answer

PublicSquare does not act for you in the sale of the property. The Contract requires a nominated sale agent, and most owners simply make a deal with their current property manager to act for them during the sale.

Question 36

What happens if PublicSquare ceases trading or becomes insolvent?

Accepted Answer

You hold legal title at all times — the property is yours, not PublicSquare's, and PublicSquare holds no ownership interest. Your title and your direct tenant agreement remain intact independently of PublicSquare's operation. We recommend reviewing this scenario with your solicitor.

Question 37

What are PublicSquare's fees?

Accepted Answer

None. Landlords pay PublicSquare nothing: no signing fee, no setup fee, no weekly fee and no sale commission. PublicSquare acts for the homebuyer and is paid by the homebuyer. You keep paying your normal ownership costs and your own agency's fees as usual.

Question 38

Can we do a video call?

Accepted Answer

Yes. You can book a call with a PublicSquare rep at any time to talk through how Rent-to-Sell works and the figures in a homebuyer's offer. Our reps can explain the program but can't give personal financial advice.

Question 39

Who does PublicSquare act for?

Accepted Answer

The homebuyer. PublicSquare is the homebuyer's buyer's agent and is paid by them. You aren't our client, you don't appoint us and you pay us nothing. We encourage you to get your own legal and financial advice before you sign.

Question 40

What's in the property application a homebuyer sends me?

Accepted Answer

It shows exactly what you'd receive each week if you rent your home to that homebuyer on a Rent-to-Own basis: the listed rent plus an additional 50% extra cash flow on top of your normal market rent. It also introduces the homebuyer and gives their PublicSquare rep's details. If you're interested, your property manager contacts the rep, and PublicSquare sends you an offer to consider.

Question 41

Does my property manager stay involved?

Accepted Answer

Yes. Your agency keeps managing the tenancy as usual, on a standard tenancy agreement for your state. The Contract also nominates your property manager's agency as the sale agent when the home sells, and you pay that commission under your usual arrangements with them.

Question 42

How do I find out what my property would earn?

Accepted Answer

List your property with PublicSquare. A rep will follow up personally to talk through what it could earn under Rent-to-Sell, and we can feature it to pre-approved homebuyers in your area.

Introducing
Rent-to-Sell for Landlords

How It Works

Your tenant moves in

You collect rent plus 50%

Contracted minimum resale price

Case Studies

Reviews

Everything You Need to Know About Rent-to-Sell

How Rent-to-Sell Works

What Rent-to-Sell Costs

The Extra 50% Cash Flow

The Minimum Resale Price

Owner Protections

Tax

Who Rent-to-Sell Suits

Frequently Asked Questions

Guides, Comparisons, and Calculators

IntroducingRent-to-Sell for Landlords