Prevent long rental apartment from running away! Shenzhen and Xian issued the notice on the same day

category:Finance
 Prevent long rental apartment from running away! Shenzhen and Xian issued the notice on the same day


Recently, eggshell apartments, a US listed company, have been confronted with the rights protection of landlords, tenants and suppliers in Beijing and other places, so that its business model has been questioned again. Reports of eggshell falling into trouble have been seen in the media many times: landlords have been informed by phone to ask for rent reduction, cleaning and maintenance personnel no longer provide services due to arrears of wages, and network service providers cut off the network in the apartment because of the arrears of eggshell fees.

In addition, on November 16, according to the statistics released by consumer protection agencies around the world, five local parent rental apartment companies in Shenzhen, such as AI rent apartment, Meiju apartment, Xiaoying apartment and Leju apartment, have been complained of no room to live in in Shenzhen since September this year.

Shenzhen: Housing rental enterprises are not allowed to drive up the rental price by long collection and short payment

Shenzhen Municipal Bureau of housing and urban rural development pointed out in the urgent notice on effectively standardizing the operation behavior of housing rental enterprises, that some long-term rental apartments adopt the high in low out and long-term collection and short payment, which has caused the problems of thunder explosion and road running, which has attracted the attention of government departments and the society.

The notice requires that the housing rental enterprises shall not raise the rental price, increase the risk of enterprise capital fracture, and infringe upon the legitimate rights and interests of house owners and lessees by means of high in low out and long-term receipt and short payment; the housing leasing enterprises shall be fully aware of the business risks of breaking the capital chain by adopting the methods of high in low out and long-term receipt and short payment Legal risk. According to the needs of industry supervision, the industry authorities will issue relevant industry risk tips.

Notice requires that housing rental enterprises should obtain business license, business scope clearly marked housing rental, not beyond the scope of business. If a natural person sublets more than 10 sets of houses (rooms), it shall go through the registration of market entities according to law. After the enterprise has obtained the business license, the municipal housing construction department will focus on supervision with the market supervision department for frequent changes in the registration and filing information of the legal representative, person in charge, shareholders and place of business, and issue early warning information to the society.

Housing rental enterprises and their employees shall, in accordance with the provisions of Article 2 of the No. 10 document of jfG [2019], strengthen the release and management of housing source information, and be responsible for the authenticity and effectiveness of housing source information. The published housing information should be real name and indicate the information of the organization and store, and should include the location, use, area, pictures, price, etc., to meet the requirements of real entrustment, real situation and real price. The same house source of the same institution can only be released once on the same network information platform. The house source information released in different channels should be consistent. The house source information that has been completed or entrusted should be withdrawn from all publishing channels within 5 working days.

Recently, eggshell apartments, a US listed company, have been confronted with the rights protection of landlords, tenants and suppliers in Beijing and other places, so that its business model has been questioned again. Reports of eggshell falling into trouble have been seen in the media many times: landlords have been informed by phone to ask for rent reduction, cleaning and maintenance personnel no longer provide services due to arrears of wages, and network service providers cut off the network in the apartment because of the arrears of eggshell fees.

In addition, on November 16, according to the statistics released by consumer protection agencies around the world, five local parent rental apartment companies in Shenzhen, such as AI rent apartment, Meiju apartment, Xiaoying apartment and Leju apartment, have been complained of no room to live in in Shenzhen since September this year.

Shenzhen Consumer Council disclosed that Shenzhen love to rent apartments have been closed business, has been listed in the list of abnormal business. Because a large number of rents can not be paid to the landlord, the landlord has asked consumers to move away, and consumers are facing the situation of no room to live in. In addition, Meiju apartment and Xiaoying apartment in Shenzhen have been complained of broken capital chain and a large amount of rent can not be delivered to the landlord. The landlord has issued a notice asking consumers to move out. Leju apartment has been closed. In September, the company issued a letter of company transformation and notice to the owners, unilaterally announced the companys transformation and the decision to compensate the tenants by instalments. As the merchants failed to pay the rent to the landlord, the landlord asked the consumers to move out of the house.

Xian: the increase of rent shall not exceed the increase of per capita income of residents

On November 17, Xian City, Shaanxi Province issued the notice of the general office of the peoples Government of Xian on printing and distributing the implementation scheme of Housing leasing pilot project in Xian city.

It is mentioned that the housing rent level should be stabilized. The reasonable range of rent price index is determined based on the housing affordability measurement indexes such as the ratio of housing price to income and the ratio of rent to income. From 2020 to 2022, the increase of rental housing rent will not exceed the increase of per capita disposable income of urban residents.

In addition, we should establish and improve the housing rental transaction service platform. To provide housing rental transaction funds supervision services for the leasing parties. The housing leasing enterprises should open the only special account for the supervision of the housing leasing transaction funds in our city in the supervision cooperative bank, and the special funds should be accounted separately for the special purpose, so as to avoid malicious deduction of deposit and arbitrary misappropriation of rent, so as to ensure the capital safety of both parties and safeguard the legitimate rights and interests of the parties.

We will strictly investigate and punish the illegal behaviors of Housing leasing. We will continue to carry out comprehensive management of illegal leasing activities, and strictly investigate and punish institutions set up without the approval of financial supervision departments to carry out personal rent loan business. We should improve the mechanism of multi department joint law enforcement, strengthen law enforcement, safeguard the legitimate rights and interests of all parties in Housing leasing, and ensure the property safety of the people.

In addition, Xian requires that when the land is bidding, auction and listing, it is required to set the condition that the residential rental operation period after completion shall not be less than 10 years. During the operation period, it shall not be sold on behalf of rent, and can be sold on the market after the expiration of the operation period. To speed up the approval and supply of land for rental housing, the land transfer fee can be paid in installments. The average area of newly-built rental housing is about 60 square meters, and the maximum is no more than 90 square meters.

Previously, Zhihu, the official authentication account number of long-term rental apartments, said in response to netizens questions, that the recent industry crisis had the impact of epidemic situation, but there were also some peer enterprises excessive use of rent loan means and other factors. Adopting the management mode of long-term collection and short-term payment and high-income and low-cost payment can realize rapid scale expansion when the market environment is good, and it also brings great business risks. Rent lending is not a leverage tool that can quickly expand cash flow, but a necessary assistance to make some young people less stretched out.

On November 16, Chongqing issued a notice requiring housing rental enterprises to open a unique housing rental fund supervision account in commercial banks in the central urban area of the main city. If the rent exceeds 3 months, the rent collection account shall not be included in the supervision account. Prior to this, Hangzhou, Shenzhen, Chengdu, Xian and other places have also issued housing rental fund supervision notice.

On November 18, eggshell apartment shares jumped more than 75 per cent to $2.40. In April this year, according to media reports, Jianrong Jiayuan, a long-term rental apartment business platform of China Construction Bank, recently took over part of the housing supply of Qingke apartments in Hangzhou, with a total number of about 5000.

Further exploration of eggshell apartment: the practical problems in Shenzhen are still unsolved

At present, eggshells are in the same centralized cashing dilemma in major cities in China, such as Beijing, East China and Hangzhou. Prior to this, first finance and economics has carried out relevant reports (eggshell Shenzhen: difficulties in cashing rents continue, and employees claim that they did not receive wages on time).

First finance found that the advance rent of tenants and the advance payment from financial institutions are the two major supports for the rapid rise of eggshell model. However, with the eggshell falling into the cashing dilemma, its core rental loan business also faces risks, and the pressure on eggshell is more significant.

Relevant departments involved in the first round of negotiation

Eggshell tenants and landlords in many cities across the country spontaneously set up chat groups on the Internet to find solutions. First finance and economics reporter joined the eggshell group of tenants and landlords in Beijing, Shanghai, Shenzhen, Hangzhou and other places. After discussing and exchanging information within the group, they sought follow-up solutions with eggshell.

First financial reporter once came to eggshell headquarters in Shenzhen on November 11 and met the tenants and landlords who came here to seek to terminate the contract.

Many tenants reflect that during the transitional period when the eggshell has not returned the rent and they have not moved out of the apartment, they will still be asked by the landlord to move out as soon as possible, and they are now fighting wits and bravery with the landlord at home.

The landlord came over last night and gave us three days to sign a new contract with her or move out and change the lock in three days. Eggshell and landlord contract is quarterly payment, later changed to monthly payment, monthly rent to November 20. According to the contract (between us and the eggshell), we can live all the time, and the eggshell has not broken the contract. Said one eggshell tenant. In the process of journalists investigation, such examples are not unique.

The solution for Ms. Zou, the landlord, and the tenant is to sign a new contract, reduce the rent appropriately, and wait for the eggshell event to progress. Renegotiation between landlords and tenants seems to be the only way to solve the problem at present.

However, many tenants do not seem to be so lucky. Property knocks at the door early in the morning. The landlord asked the property to talk about direct rent. The eggshell did not pay the rent to the landlord, nor did he pay the property fee. I want to wait for the eggshell to slow down, but the landlord doesnt want to wait. If I withdraw the rent, there is no clear solution for the monthly payment of the micro banks. One tenant responded.

The above 11.16 first round of negotiation results also showed that the police department had already placed a case for investigating the malicious debt of the eggshell, but the investigation took time, and the information would be synchronized on the official account of the Futian police force.

In addition to Shenzhen, the situation of Hangzhou eggshells is not optimistic. According to media reports, the signboard of Hangzhou branch of eggshell apartment has been removed, and only a few employees are left in Hangzhou branch.

We may face challenges in working with financial institutions to provide rental financing. Eggshell listed in the Prospectus has such a risk revealed, now seems to be a prophecy.

The financial institution that cooperates with eggshell to provide loans for tenants to pay rent is Weizhong bank, whose business is mainly rent loan. According to the information previously disclosed by eggshell apartment, about 60% of the tenants choose rent loan in 2019.

According to the prospectus, eggshells provide flexible payment methods for tenants, who can choose to prepay the rent annually, semi annually or quarterly. We also work with licensed financial institutions that provide rent financing, which provide rent financing for some residents. After residents choose rent financing, we will connect them with the financing institutions we cooperate with. Financial institutions will make advances to us and residents will repay loans to financial institutions in monthly instalments. We pay interest to the relevant financial institutions.

Using advances from financial institutions to support our expansion, the eggshell prospectus said. At present, the companys substantial sources of funding include advances from financial institutions related to rent financing and advances from residents.

In the storm of cashing difficulties that have not yet ended, many tenants of eggshell are facing the problem of rent refund and rent loan.

The above 11.16 first round of negotiations results showed: whether the tenant has applied for rent withdrawal, the rental loan is to be repaid. The support from the micro public bank is to provide credit protection to all the Shenzhen eggshell tenants by March 31, 2021, and there will be no credit record within that time. There will be no credit record. The tenants may be concerned about the official account of micro public bank rental consumer loan service. Personal information, apply for credit protection.

This is consistent with the announcement of to rent housing consumer loan customers issued by the first finance and economics reporter of Weizhong bank. The notice said that if the customer (tenant) had been forced to move away, please log in to the official account of the consumer loan and return to the information registration. The bank will verify and confirm it as soon as possible, assist in resolving the lease dispute, and make appropriate arrangements for the tenant to make loans. At least until March 31, 2021, tenant credit will not be affected.

The landlord came three times and urged us to move out. We applied for a refund, but the eggshell hasnt been processed yet. The lease contract will be due in April next year and will be paid in the form of a rental loan. A tenant in East China told the first finance and economics reporter that Weizhong bank has now promised that the credit reference will not be affected at least before March 31, 2021. What about after that time? How to solve the problem is still unknown.

First finance found that the net cash used by eggshell in 2017, 2018 and 2019 were 115 million yuan, 1.164 billion yuan and 1.912 billion yuan (US $274.5 million), respectively, of which the prepaid rent of residents was an important source of cash inflow from the companys operation. In addition, eggshell received advance payments related to rental financing from financial institutions in 2017, 2018 and 2019, which were RMB 937 million, RMB 2.127 billion and RMB 2.753 billion (US $395.5 million), respectively.

During the period indicated, 91.3%, 75.8% and 65.9% of the residents with whom we had valid leases had rental financing arrangements with us in 2017, 2018 and 2019. Eggshell claims that if the lease is terminated early or the resident defaults, the company will need to refund the advance payment for the remaining lease term to the financial institution or the relevant resident (if applicable).

If a residents lease term is terminated early or the resident defaults on the monthly installment payment, we will need to refund the advance payment for the remaining lease term to the relevant financial institution, which will result in cash outflow and reduce our working capital. Eggshell scale.

We cant fully predict when and how many residents will terminate their tenancies early or default on their payments, which makes our cash outflows unpredictable. In the event of a large number of early terminations or defaults, we may face cash flow shortages and adversely affect our business operations and financial condition. Eggshells are said in the prospectus.

At present, with the outbreak of the shortage of funds, eggshells are facing more and more difficulties in cashing. If there is a need to refund the relevant funds of financial institutions, the financial pressure it will bear will be even greater.

On November 17, it was reported that due to the deterioration of eggshell assets, Weizhong bank stopped its business in time and was no longer a rental supplier of eggshell. In this regard, Weizhong bank has not received a reply as of the time of publication.

Step too far

Since the beginning of 2020, there have been frequent thunderstorms in long-term apartments. Since July and August this year alone, more than 20 parents rental apartment projects have burst and run away. The main reason is that the capital chain under the mode of high income and low rent is broken. According to a survey by first finance reporter, different from their high rent and low rent, eggshell calls itself an innovative new rent business model.

In the first mock exam, eggshell started rapidly in 2015, and since then, it has received large investment from the investment institutions, and its valuation has been constantly increasing.

We have increased the number of apartment units from 2434 at December 31, 2015 to 438300 at December 31, 2019. According to the eggshell prospectus, the number of apartments has increased 180 times in four years.

In the view of a long-term rental platform industry insiders, the rise of eggshell step too big..

In addition, the rental cost of eggshells increased by 194.7% from RMB 2171.8 million in 2018 to RMB 6.4 billion (US $919.3 million) in 2019, this is mainly due to the increase in the number of open apartments due to the continuous expansion of our business.

In order to remain competitive, eggshell needs a lot of money to invest continuously in all aspects of business operation. According to this, the eggshell staff interviewed by the first finance and economics reporter said that after the owners house is recovered, eggshell usually needs a large amount of capital expenditure in the early stage, which includes the capital expenditure for purchasing and leasing apartments from the owners, as well as the necessary apartment decoration and decoration, so as to make it suitable for leasing to residents.

In June this year, it was reported that Gao Jing, the founder of eggshell, was investigated. Although the company claimed that the investigation involved by Gao Jing has nothing to do with eggshell apartment, all business and business activities of the company are normal. However, the equity relationship says everything, as of the date of this annual report, Gao Jing, our co-founder, director and CEO, owns all of our class B common shares, accounting for 75.7% of our total issued and outstanding shares. Eggshell said that due to the concentration of ownership, Gaojing will have a significant impact on the companys affairs, such as mergers, acquisitions, mergers, asset sales, restructuring and other major corporate actions.

Source: Chen Hequn, editor in charge of economic report in the 21st century_ NB12679