Recently, from the central to local, for small and micro-enterprises and self-employed businessmen rent reduction policy has been introduced repeatedly, with real money to support these enterprises.
Implemented as soon as possible! Reduction of 3 to 6 months rent
A few days ago, the State-owned Assets Supervision and Administration Commission issued a letter requesting to do a good job in 2022 service sector small and micro-individuals rent relief work in 2022 was classified as an epidemic in high-risk areas in the county-level administrative area of the service sector small and micro-individuals and tenants of the central enterprise housing rent reduction of 6 months of rent in the current year.
Of these, those classified as high-risk areas in the epidemic in the fourth quarter are to be fully relieved of six months' rent by way of rent refund in the current year or reduction in the next year, while those in other areas are to be relieved of three months' rent.
The SASFAA has also set time requirements for the implementation of the policy. The universal three-month rent reduction should strive to actually complete the main work in the first half of the year, and the supplementary three-month rent reduction should be completed within two months of being listed as a medium- to high-risk area.
The SASAC's issuance aims to urge central enterprises to urgently study and determine the specific implementation details of the rent remission policy and implement it. This is because the policy on rent reduction and waiver was introduced much earlier.
In February, the National Development and Reform Commission and 14 other departments issued the "Several Policies on Promoting the Resumption of Development of Difficult Industries in the Service Sector", which specifies that small and micro enterprises and individual businessmen in the service sector within the county-level administrative areas where the areas classified as high-risk in the epidemic are located in 2022 will be given a rent reduction of six months for state-owned housing in 2022, and three months for other areas.
The policy package proposes that if the performance of state-owned enterprises and institutions is affected by the rent reduction or exemption, they will be recognized in the assessment according to the actual situation.
Multiple places to reduce or waive the rent rules frequently
Small and micro enterprises and individual entrepreneurs are the key market players in stabilizing employment, protecting people's livelihood and promoting innovation. Data from the General Administration of Market Supervision shows that by the end of 2021, there were 154 million registered market players nationwide, of which 103 million were individually owned businesses, and 90 percent of small and micro enterprises and individually owned businesses were in the service sector.
After the introduction of the policy, the implementation rules for rent reductions and exemptions have been gradually rolled out around the country. According to the incomplete statistics of China New Business, more than ten provinces (autonomous regions and municipalities directly under the central government) have released the implementation rules so far.
--Henan
Henan is the fastest province to respond. in February, Henan issued a notice stating that small and medium-sized micro business enterprises and individual industrial and commercial tenants renting business premises with state-owned assets and affected by epidemics and disasters and unable to operate normally will be exempted from paying rent for three months, and will be given a half-reduced charge of six months' rent.
--Anhui
Early in March, Anhui issued a notice specifying that small and medium-sized microenterprises and individual business households renting operating premises of state-owned enterprises or properties owned by administrative institutions will be exempted from the 3-month (February, March and April) rent for 2022, and that subletting and subletting of the premises shall be implemented to the final tenant.
--Jiangsu
Jiangsu requires that the state-owned housing is located in the county-level administrative region in 2022 has not been included in the medium and high-risk areas, the March-May rent free; after the introduction of the rules are classified as medium and high-risk areas, in the March-May rent free of charge on the basis of a deferred or from the month of an additional reduction of three The rent will be waived for three months from the same month on top of the full waiver for March-May. If the county-level administrative region where the state-owned housing is located has been listed as a medium-high risk area in 2022, the rent for March-August will be fully exempted.
--Harbin, Heilongjiang
"Harbin City to support small, medium and micro-enterprise relief policies and measures," shows that in the cumulative enterprises have been six months on the basis of rent relief, and then in the policy released before the date of the city, district and county (municipal) government administrative institutions and state-owned enterprises owned by the small, medium and micro-enterprises and individual entrepreneurs, free of charge. Micro, small and medium-sized enterprises (MSMEs) and individual industrial and commercial tenants shall be exempted from 3 months' rent in 2022 or have their lease extended for another 3 months free of charge, i.e., a cumulative total of 9 months' housing rent shall be reduced or exempted.
--Shanghai
Shanghai's "a number of policies and measures to fight the epidemic with all its might to help enterprises promote development" pointed out that, in response to the impact of the current round of the epidemic on enterprises, Shanghai has studied and formulated a more vigorous support policy: the object of housing rent reduction and exemption in Shanghai has been expanded from the state-mandated service industry to all industries.
"I hope more private enterprises and individual landlords will pay attention"
Mr. Lai, who owns a coffee shop in Sichuan, told CNA that he went to register early after learning of the rent reduction policy.
"The location of my coffee shop had been designated as a medium-risk zone, and it was a rented state-owned house, which happened to qualify for a six-month reduction at the county level and three months elsewhere." Mr. Lai said that the registration process, in addition to the basic common documents, the most important is a paper "Sichuan provincial organs of state-owned housing paid use contract".
It can be seen that the current round of rent reduction policy mainly benefits tenants of state-owned housing. Therefore, there are also more voices calling for more attention to commercial tenants renting non-state-owned housing.
Ms. Qiu, who owns a clothing store in Anhui province, told CNBC that from the second half of 2021, the business of the whole shopping mall was suddenly not so good, and the commercial tenants went to talk to the boss about rent reduction. The owner later reduced the rent and some miscellaneous fees for four months one after another, and the annual rent went from more than 50,000 yuan to more than 30,000 yuan.
"This price was certainly not dare to think before, although business is difficult, but ran into a 'good landlord in China', thinking to hold on for another year." Ms. Qiu said.
"On the promotion of the service sector in the field of difficult industries to resume the development of a number of policies" also proposed, around the world can be co-ordinated all kinds of funds, to rent non-state-owned housing in the service industry small and micro-enterprises and individual businessmen and women to give appropriate assistance. Industry analysts believe that only industry-wide initiative to share costs to resolve difficulties, in order to truly promote the healthy development of the service industry.
Of course, "landlords also have to live and eat". The interests of landlords should not be ignored after the call for rent reduction. Previously, Sichuan has introduced measures to reduce the rent of landlords around the moderate financial subsidies.
In this regard, Cheng Ke, deputy director of the Culture and Rule of Law Research Center at the School of Cultural Industry Management at the Communication University of China, suggested that in order to balance the interests of landlords after the rent has been reduced or waived, consideration could be given to appropriate subsidies for lessors by the relevant government departments, which could be in the form of tax incentives in a variety of ways.
Have you ever met a "good Chinese landlord"?