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How RenIQ calculates the RenIQ Score, its verdict, and the financial metrics.
RenIQ generates a structured financial analysis for residential rental properties. Each report has two parts: a deterministic Part A (all numbers, the RenIQ Score, and the verdict, computed by a fixed engine) and an AI-written Part B (a sourced narrative that explains and argues but never invents figures).
The analysis combines user-provided inputs (purchase price, expected rent, costs), AI-extracted data from listing pages, market evidence gathered from public listings, and country-specific financial defaults to produce yield figures, cash-flow projections, a RenIQ Score, and a buy/negotiate/avoid verdict.
Every metric is derived deterministically from the inputs. We do not adjust scores to produce a preferred outcome. Where an input is missing, we substitute a conservative, clearly-labelled estimate (or a country-level default) and lower the report's data confidence accordingly.
The RenIQ Score is a composite on a 0–100 scale, built from five weighted pillars:
| Pillar | Weight | Driven by |
|---|---|---|
| Yield & Return | 35% | Net yield and cash-on-cash return |
| Price vs Market | 20% | Price per m² vs. verified comparable listings |
| Location & Demand | 20% | Location grade from market evidence |
| Liquidity | 10% | Days on market (where available) |
| Risk | 15% | Cash-flow resilience, interest-rate refix stress, assumed inputs |
The three evidence pillars (Price vs Market, Location & Demand, Liquidity) depend on market comparables. When no verified evidence is available for a location, those pillars are excluded and the remaining weights are renormalized. We never pad a missing pillar with a neutral placeholder. Instead, the report's data confidence drops so you can see how much of the score rests on evidence versus fundamentals.
Alongside the score, each report carries one of six verdicts. The base verdict comes from the composite score, then a small set of deterministic guardrails can override it:
| Verdict | Base score |
|---|---|
| STRONG BUY | 85–100 |
| BUY | 72–84 |
| NEGOTIATE | 60–71 |
| HOLD | 50–59 |
| AVOID | 40–49 |
| STRONG AVOID | 0–39 |
To show where a deal is strong or weak, the report breaks the headline out into nine diagnostic sub-scores, each 0–100 with its own confidence marker: Valuation, Income, Cash Flow, Financing, Market & Location, Property Quality, Liquidity, Risk, and Data Confidence. A dimension with no data is shown as "No data" rather than a guess.
Data confidence is reported as Strong, Moderate, or Limited depending on how many pillars are backed by real, observed data versus modelled assumptions. Confidence never changes the composite score itself: it changes the verdict label (e.g. "BUY, data-limited") and gates STRONG BUY.
A letter grade (A+ to F) is also shown as a familiar shorthand for the same 0–100 composite; the score, verdict, and sub-scores are the primary output.
Gross yield = Annual rent ÷ Purchase price × 100
This is the conventional, listing-comparable figure: rent measured against the headline price, before costs or financing. The report also shows a secondary yield on total cost (rent ÷ total investment including transaction costs), so both bases are visible.
Net yield = Net operating income ÷ Total investment × 100
Net operating income is gross rent minus a vacancy allowance and itemized operating costs: property management, a maintenance / CapEx reserve, property tax, community / reserve-fund charges, insurance, and any landlord-borne utilities. Each cost line is modelled per country and shown individually. Net yield, not gross yield, is what feeds the RenIQ Score.
Monthly cash flow = Monthly rent − Operating costs − Mortgage payment
Where mortgage financing is selected, the monthly repayment is calculated using a standard amortising loan formula at the country default interest rate and term (Slovakia: 3.5% / 30 yr; Spain: 3.0% / 30 yr) unless the user provides their own figures.
CoC return = Annual cash flow ÷ Equity invested × 100
DSCR = Net operating income ÷ Annual mortgage payments
A DSCR at or above 1.0× means the property's income covers the loan payments; below 1.0× it does not. A full-equity purchase carries no debt to cover. DSCR is also one of the guardrails that can prevent a BUY verdict.
Shown alongside cash-on-cash (never in place of it), this combines the first-year cash flow, mortgage principal paydown, and a conservative appreciation estimate drawn from residential price indices where data is on file (otherwise a conservative country default). Appreciation is deliberately kept out of the yield and cash-on-cash figures.
For countries with a tax model (Slovakia, Spain), the report also estimates personal income tax on the rental profit and the resulting after-tax cash flow and net yield. These are additive, clearly-labelled display figures. They do not affect the RenIQ Score, and they are an estimate, not tax advice.
When specific data is not provided, RenIQ substitutes the following conservative defaults. These are configurable per country and are updated periodically by the RenIQ team.
| Parameter | Slovakia | Spain |
|---|---|---|
| Mortgage rate | 3.5% p.a. | 3.0% p.a. |
| Loan term | 30 years | 30 years |
| Loan-to-value | 80% | 80% |
| Vacancy allowance | 5% | 8% |
| Maintenance / CapEx reserve | ≈ €10 / m² per year | ≈ €12 / m² per year |
| Annual appreciation | Price-index based (≈3% default) | Price-index based (≈4% default) |
RenIQ uses OpenAI models for a few clearly-bounded tasks. Crucially, the AI never computes the score or the financial figures. Those come from the deterministic engine. The AI extracts data, gathers evidence, and writes the narrative.
Property data sent to OpenAI is used solely to generate your report and is not used to train models under our API agreement.
Questions about the methodology? support@reniq.eu
No. Every figure (the RenIQ Score, yields, cash flow, and the verdict) is computed by a fixed, deterministic engine. The AI only extracts listing data, gathers market evidence, and writes the narrative. It never invents or computes numbers.
The RenIQ Score is a 0–100 composite built from five weighted pillars: Yield & Return (35%), Price vs Market (20%), Location & Demand (20%), Risk (15%), and Liquidity (10%). When no verified market evidence is available, the evidence pillars are excluded and the remaining weights are renormalized rather than padded with a neutral placeholder.
Yes. BUY is reachable on fundamentals alone and is labelled 'data-limited' when evidence is missing. Only STRONG BUY requires verified market evidence on top of strong fundamentals.
No. Comparable prices and rents shown are asking prices from public listings, not recorded transaction values. Each cited source is checked to be a real, reachable page, but that is not a guarantee it substantiates every figure attributed to it.
No. RenIQ reports are informational only and do not constitute financial, legal, investment, or tax advice. Always verify material claims independently before making an investment decision.
RenIQ is fully configured for Slovakia and Spain, with country-specific financial defaults for mortgage rates, vacancy allowances, maintenance reserves, and taxes.