Long-term rental apartments are frequently struck by lightning, and industry supervision needs to be deepened. From the rise of the industry to the barbaric growth and then to the "explosion", the long-term rental apartment industry only took a few short years. Successful long-term rental apartment brands have their own characteristics, and most of the "explosive" long-term rental apartment brands are frustrated under the operating mode of "high income and low rent" and "long income and short payment". In the end, the "fund pool" created by long-term rental apartments was unsustainable, and "thunder" began to appear.

It is worth noting that the business model of multi-parent rental apartments that have appeared one after another is basically the same, that is, high income and low rent. Under this business model, the rent paid to the landlord for long-term rental apartments is higher than that paid to the tenants. On the other hand, many "explosive" long-term rental apartments adopt the mode of long-term payment and short-term payment, and attract tenants to pay the house payment for a longer lease term in one lump sum through the way of "more favorable annual payment", but pay the house payment to the landlord in the form of monthly payment.

Under the mode of "high income and low rent" and "long income and short payment", a "fund pool" naturally forms within long-term rental apartment enterprises. Long-term rental apartments with "cash pools" began to grow, expanding their scale or making financial investments. However, the risks of the industry have also begun to breed in this mode. In the end, it is difficult for some brands to maintain this high-income and low-rent model, and there has been a phenomenon of "explosion".

At the same time, many long-term rental apartment brands sell "rental loans" linked to personal credit information to tenants. After the outbreak of long-term rental apartments, tenants are not only homeless, but also need to repay high-interest rental loans.

Extended data

The Housing Lease Regulations (Draft for Comment) may be implemented.

On September 7, the Ministry of Housing and Urban-Rural Development promulgated the Housing Leasing Regulations (Draft for Comment), which consists of 8 chapters and 66 articles, covering strengthening the protection of tenants' rights and interests, supervising leasing institutions and supporting leasing enterprises. The "Regulations" are open to the public for comments, and the feedback is until June 8, 2020.

Indeed, the leasing industry is so big, but there is no relevant industry standard. Some professionals believe that the Housing Lease Regulations (Draft for Comment) embodies the determination of the state to rectify the chaos in the industry and "mine-clear" tenants.

The document shows that if the housing leasing enterprise asks the lessee to use the housing leasing loan by concealment, deception, coercion, etc., and induces the lessee to use the housing leasing loan in the name of rent concessions, and incorporates the relevant contents of the rental consumer loan into the housing leasing contract, the real estate management department will give a warning and order it to make corrections within a time limit. Those who fail to make corrections within the time limit will face penalties such as suspension of business or fines. If the circumstances are serious, the business license shall be revoked by the market supervision and management department.

Phoenix Net-The "explosion" of long-term rental apartments has promoted the deepening of industry supervision, and China is preparing to issue the first normative document in the field of leasing.