Long-term rental apartment enterprises are constantly experiencing thunder storms. Recently, Danke Apartment, as a well-known enterprise of long-term rental apartments, has successively heard negative news such as arrears of suppliers' accounts and landlord's rent, which has caused heated discussion in the market. With the tide of migrant workers returning home at the end of the year approaching, the rental market has gradually turned into the off-season, which is undoubtedly worse for long-term rental apartment enterprises facing financial pressure. Since October, many hot cities, such as Shenzhen, Nanjing and Foshan, have issued documents to regulate the rental market, which is expected to reverse the depressed rental market.
Formation of fund precipitation
china securities journal reporters found that some well-known long-term rental apartment enterprises have been caught in negative storms such as arrears of employees' wages, tenants queuing for refund of deposits, deep liquidity crisis, or will declare bankruptcy, App paralysis, loss of housekeeper, arrears of suppliers' payment, and continuous being listed as executors. At the same time, some tenants broke the news and paid the rent, but the long-term rental apartment enterprises did not pay the rent to the landlord, resulting in the landlord not receiving the rent to drive away the tenant, and the tenant's money could not be returned. Others were driven away by the landlord by means of water, electricity and network disconnection because the platform defaulted on the landlord's rent.
in the face of the "thunder storm" faced by many well-known long-term rental apartment enterprises, Hu Jinghui, chief economist of Jinghui think tank, pointed out that because the apartment and the owner pay monthly or quarterly, while the tenant pays half a year/year, the time difference of payment forms capital precipitation. Under the blessing of rent loan, many long-term rental apartment operators require tenants to pay rent every year, or even longer, and can deposit funds for at least 13 months at a time. The loan companies that provide rental loans are usually not formal banks, but some online lending companies or informal financial institutions, which magnifies the risks.
Hu Jinghui emphasized that if the rent (short money) to be paid in one year is used for the rolling development, decoration and assembly of enterprises, this kind of investment usually needs at least 36 months for amortization and depreciation, that is, the money to be paid in one year is invested in a three-year cycle, which is doomed to become a Ponzi scheme. Once no new tenants enter, the rent is overpaid by means of rent loan, and no new investors provide funds, the cash flow of long-term rental apartment enterprises will be broken, and then there will be problems such as bursting positions and running away.
Hu Jinghui said that at the same time, we also saw the positive side of the industry. On February 25th, 2119, the Ministry of Housing and Urban-Rural Development and other six departments issued the Opinions on Rectifying and Regulating the Order of the Housing Leasing Market. In May this year, the China Securities Regulatory Commission and the National Development and Reform Commission jointly issued the Notice on Promoting the Pilot Work of Real Estate Investment Trust Funds (REITs) in the Infrastructure Sector. Many local governments began to rectify the leasing market, and the Ministry of Housing and Urban-Rural Development began to solicit opinions on the upcoming Housing Leasing Regulations.
Strengthen supervision in many places
china securities journal reporters combed and found that several regions have recently issued documents to regulate the rental market. Among them, there are many hot first-tier cities.
Shenzhen Housing and Construction Bureau issued the Emergency Notice on Effectively Regulating the Business Behavior of Housing Leasing Enterprises (hereinafter referred to as the Emergency Notice). It pointed out that some long-term rental apartments have adopted "AG low rent" and "long receipt and short payment", which caused the problem of "lightning explosion" and "running away", which has attracted great attention from government departments and society. Housing leasing enterprises are not allowed to drive up the rental price, increase the risk of enterprise capital breakage, and infringe on the legitimate rights and interests of housing rights holders and lessees by means of "AG low price" and "long receipt and short payment"; Housing leasing enterprises should be fully aware of adopting the mode of "AG's low output" and "long income and short payment" to expand the market, which will lead to the business risk and legal risk of broken capital chain. At the same time, the housing leasing enterprise shall not require the lessee to use the housing rent consumption loan by concealment, deception, coercion, etc., shall not induce the lessee to use the housing rent consumption loan in the name of rent installment, rent concessions, etc., and shall not embed the relevant contents of the housing rent consumption loan into the housing lease contract.
In terms of establishing and improving the dispute mediation mechanism, the Emergency Notice specifically pointed out that in order to tighten the main responsibility of housing lease dispute handling, housing lease enterprises should establish a lease dispute handling mechanism, accept housing lease complaints in a timely manner, and properly resolve disputes with relevant parties. If the housing lease dispute between the housing lease enterprise and the housing right holder or lessee cannot be resolved through consultation, it shall be resolved through people's mediation, litigation, arbitration and other legal channels, and the lessee shall not be expelled by violent means such as threats, intimidation, water and electricity cuts.
in addition to Shenzhen, many regions, such as Nanjing and Foshan, have recently issued normative documents for the rental market, which regulate the rent level and the renovation of stock houses.
in terms of rent control, on October 9, Foshan Nanhai District Housing, Construction and Water Resources Bureau issued an announcement on soliciting opinions on the results of "Foshan Nanhai District 2121 Housing Rental Market Guidance Rent Standard Project" and "Nanhai District 2121 Government Guidance Rent Evaluation Project". According to the announcement, Nanhai District of Foshan regularly announces the market rent level of different types of houses and the government guidance price of public rental housing rent by region. Cultivate and develop the housing rental market, support housing rental consumption, gradually establish a housing rental system with both purchase and rent, establish and improve the housing security system, gradually solve the housing difficulties of low-and middle-income families through multiple channels, and promote the healthy development of the housing rental market
On the renovation of stock houses, on October 8, Nanjing Urban and Rural Construction Committee, Nanjing Planning and Natural Resources Bureau, and Nanjing Housing Security and Real Estate Bureau jointly drew up the Detailed Rules for the Handling of Nanjing Stock Houses Rebuilding into Leased Houses (for Trial Implementation), further standardizing the handling process of Nanjing Stock Houses Rebuilding into Leased Houses, and stipulating that renovation projects should be based on the whole building, unit and floor (with independent traffic space).
the rental market has turned into a low season
It should be pointed out that at present, the rental market has turned into a low season. Compared with last year, the transaction volume and transaction price in the leasing market decreased significantly. The decline in both transaction volume and rent is undoubtedly worse for brand long-term rental enterprises that are currently facing financial pressure.
according to institutional data, in terms of the national leasing market, the turnover of the leasing market in key city 18 decreased by 7% last week, and the overall leasing market activity remained declining, and the market continued to get cold. The overall rent level was basically the same, with a slight increase of 1.3% from the previous month and a year-on-year decrease of 5.1%. In terms of cities, among the national key 18 cities, Guangzhou, Nanjing, Shenzhen, Dalian and Hefei showed a month-on-month increase, while the leasing volume of the remaining 13 cities all showed a different degree of decline, with Beijing, Xi 'an, Shanghai, Qingdao, Jinan and Yantai showing a month-on-month decrease of more than 11%.
in addition to the decline in transaction volume, the overall rental level has also declined compared with the same period of last year. The average rent level of Zhou Yue in the national key 18 cities is 41.8 yuan/m2, down 5.1% year-on-year and slightly higher than the previous month. In terms of cities, the rents of Shanghai, Beijing, Guangzhou, Dalian, Tianjin, Jinan, Chongqing and Langfang showed a month-on-month increase last week, with an increase of less than 3%, while other cities all showed a month-on-month decline with a decrease of less than 4%. From a year-on-year perspective, the rents in Shanghai, Hangzhou, Nanjing, Chengdu, Xi 'an and Hefei were higher than the same period of last year, among which Shanghai and Hangzhou maintained a year-on-year increase for seven consecutive weeks, while the rents in other cities were lower than the same period of last year.
"There is an obvious slack season in the rental market. Generally speaking, the rework tide in February and March after the Spring Festival and the graduation season from July to September are the peak season of the rental market, and the rest of the time is the off-season. Since the beginning of this year, affected by the epidemic and other factors, the number of migrant workers has dropped significantly, and the rental market has been sluggish. At present, the weather has turned cold, and many types of outdoor work have gradually decreased, and the rental market has shrunk. " A person in charge of a rental market store in Beijing told china securities journal, "At present, the rental market in Beijing has turned into a seasonal off-season, and there is little demand for new rental housing except for a few house-changing needs and the renewal of the previous contract. According to previous years, this situation is expected to last until after the Spring Festival. "