Who pays for the savage growth of long-rented apartments?

category:Finance
 Who pays for the savage growth of long-rented apartments?


On August 7, Lega Apartment announced in Guanwei that the company was not well managed and unable to fulfill the contract. Although it had saved itself through various ways, it had not been effective. At present, it has stopped operating, closed all its businesses, a large number of employees have left their jobs, no operating income, and can not repay customersarrears.

At its peak, the long-Rent apartment enterprise with more than 400,000 customers and over 200,000 apartments in eight cities collapsed, leaving a pile of disputes waiting to be resolved.

The explosion of Lega apartment is neither the first nor the last case in the industry. It and the brands of Dingjia apartment, apartment and other long-term rental apartments have sounded the alarm bell again and again for the industry that is in full swing on the steel wire.

Like sharing economy and P2P, the prosperity of long-Rent apartments seems to be overnight.

Even though the policy tone of not speculating in housing and sharing the right to rent has boosted the confidence of the industry, the question of how to make profits from long-Rent apartments is still pending.

There used to be a long-Rent apartment operator who calculated the housing cost of a centralized apartment: assuming that a Shanghai apartment rented 4,000 yuan a month, the market competition was fierce, and the cost of taking the apartment often accounted for 60%, that is, the cost paid to the owner was 2,400 yuan; the cost of decoration (including hard-fitting, soft-fitting, household appliances, etc.) was calculated at 70,000 yuan. In the first five years, the average monthly renovation cost is about 1,166 yuan, and the operating cost of each room is about 500 yuan per month. Statistics show that the total monthly cost of a room reaches 4,066 yuan. That is to say, the first five years are basically not profitable.

This is the foundation of a business, but it has been selectively neglected. Some people think that there will always be catchers in the long run.

Operating pressure is enormous, and it is not difficult to understand that there are all kinds of goblins in the long-Rent apartment industry. Rent loan is to quickly recover investment, formaldehyde door is under the pressure of fast turnover, grabbing housing resources to promote housing prices is to quickly form a scale advantage, partitioning housing is to increase income sources... These exploratory actions on the edge of policy and law are the witness of the barbaric era of industry and the price of growth.

Like real estate, long-Rent apartment is also an industry that needs to improve financial support. In the mature real estate market, apartment REITs can form stable returns under good operation. It is a high-quality asset investment category and can attract long-term capital holding pursuing long-term stable returns.

However, in China, where public REITs have not yet started, the long-Rent apartment industry is more likely to adopt the two-landlord model. Under the double attack of the high turnover of real estate and the Internet money-burning model, it has rapidly developed into a high-speed rotating gyroscope, which can meet the long-term and low-cost capital demand with high cost and short debt. If it is a little slower, the gyroscope will be able to grow. It can stop completely.

In reality, the suspension is too easy. No subscription for ABS financing, the suspension of rent and loan, the high vacancy rate, etc., may become the last straw to overwhelm long-term rental apartments. No wonder the CEO of a long-Rent apartment says that if a long-Rent apartment says that his capital chain is all right, there is no shortage of money, 99% of the chances are that he is deceiving you, and 1% of the chances are that his family has mines.

When the wind rises, too many people believe that the wool is on the pig, but who will pay the bill in the end? Look at the list of the aftermath of the Lega apartment.

Source: Responsible Editor of Economic Observation Network: Wang Xiaowu_NF