HomeGround is a real estate agency with a difference — it is not for profit.

Set up in 2014 by community organisation Launch Housing, it aims to create more affordable housing by tapping into the large private rental market.

"We've seen a significant decrease in public housing stock, it's reduced from 20 per cent down to 3 per cent in the past 20 years," HomeGround manager Christie Love said.

"At the same time, we've seen a significant increase in rental prices."

HomeGround works like a regular agency. The commission fees are standard but they go back into helping create affordable housing.

"You can have your property go on at full market, advertised on realestate.com and open to everyone, and get full market rent," Ms Love said.

"Then you have affordable properties, there's a criteria for the tenants that can lease those and an income restriction."

Beth Phillips is a savvy property investor with a strong social conscience, so for the past six months she has rented one of her units in Melbourne's bayside out at a subsidised rent to a low income tenant.

"It's been terrific, he's doing really well and it's had no impact really," she said.

HomeGround now has around 260 properties on its books with at least another 200 properties coming under management in the next few months.

"I've observed there's a sense of something bigger going on so the agents managing the property can manage with a greater sense of calm and knowing they're making an impact on the world," Ms Phillips said.

"As a result their service is excellent — it's well beyond what I've ever received anywhere else."

Community sector worker Felicity Rourke is renting her flat out at market rates, but is now considering dropping the rent.

"The management fees that were getting paid to the private company — it made sense that a not-for-profit were benefiting from that so it kind of ticked all my boxes in terms of my beliefs about ... supporting vulnerable people," she said.

A bonus is a special ruling by the tax office that allows any subsidised rent to be used as a tax deduction.

"You still have huge benefits in capital growth for yourself. A lot of people in my position have good incomes and a tax deduction goes a long way — it's almost as usual as additional income," Ms Phillips said.

HomeGround said the biggest challenge had been overcoming fears that low income tents will not pay the rent or look after the property.

"I've found I have to grow up and not be so affected about people's opinions on what I'm doing and questioning why I would do something like this," said Ms Phillips, who is now looking at leasing a number of her investment properties through Homeground.

Homeground has been so successful in Melbourne the team is already helping other community groups in New South Wales and Queensland set up similar not-for-profit real estate agencies.

This article was originally sourced from ABC Online.