Xinhua News Agency Review eggshell: young peoples renting should not be overturned by capital operation

category:Finance
 Xinhua News Agency Review eggshell: young peoples renting should not be overturned by capital operation


At the scene of the landlord Ms. Chen told reporters: to just do a registration, can not receive the rent, do not know how to do. The tenant Mr. Liu came to consult his own rent loan how to deal with credit protection. Now the rental house is arguing with the landlord, but the loan has to be paid back every month. Mr. Liu is helpless.

The head enterprises of long rent apartments are in deep crisis

On November 16, eggshell apartment official microblog said, we are not bankrupt, and we will not run away.. However, recently, the incident continues to ferment. Due to the lack of rent and no solution, some landlords pried locks and expelled tenants at night. The tenants were forced to move, and the rent loan had to be paid back. The contradiction between the tenant and the landlord, who were both victims, was intensifying

Since August this year, several housing rental enterprises have exploded, and the eggshell apartment crisis will undoubtedly bring greater impact. Founded in 2015, eggshell apartment has 400000 houses in five years, and its business has expanded from Beijing to 13 cities in China. In January 2020, eggshell landed on the New York Stock Exchange, becoming the second Chinese long-term apartment company listed in the United States.

Industry insiders analysis, high price housing and rental loans in the rapid expansion of eggshells played an important role.

The landlord, Mr. Zhang, said that in 2018, an eggshell apartment salesman called to ask if his house was for rent. Later it was found that almost all the owners of the same community had received a phone call, indicating that they were still more aggressive in robbing the housing resources at that time. Mr. Zhang said that at that time, the monthly rental price of eggshell was about 500 yuan higher than the market price, and the house was still managed, so he signed a five-year contract.

Rent loan means that the tenant signs a lease contract with the long-term apartment, and the operator of the long-term apartment cooperates with the financial institutions to guide the tenant to apply for the loan and prepay the rent and deposit for one year in a lump sum. The long-term apartment operator pays the landlord monthly or quarterly rent, and the tenant repays the loan monthly.

Mr. Liu, a tenant, said that the choice of rent loan was due to the high rent pressure in Beijing. I just went to work, and there was a lot of pressure on me to pay three. I could pay monthly if I chose rent loan, and the interest of loan was paid by eggshell, which was equivalent to interest free loan for me.

Rent loan increases leverage eggshell peoples rapid expansion Road

According to the pre IPO prospectus of eggshell apartments in the United States, in 2018 and the first nine months of 2019, rent prepayment through rental loans accounted for 88% and 80% of the companys rental income, respectively. More than 60% of the rental income of Qingke apartment, the first long-term apartment enterprise to go public in the United States, comes from rental loans.

Liu Lu believes that this mode is the same as the previous model of Internet enterprises running horses and encircling the land through capital, but its risk is greater. Once the rent drops and the house cannot be rented out as scheduled, the rent loan mode will not be maintained, and the capital chain will be broken.

According to the eggshell apartment prospectus, in 2018, the eggshell apartment net loss reached 1.37 billion yuan; in the first nine months of 2019, the net loss reached 2.52 billion yuan. The eggshell is explained as a result of its continued rapid growth.

Without scale, it is very difficult for capital to invest in you. To do scale is to collect more houses. Once the market fluctuates, it is easy to make ends meet, and it is easy to explode. One industry source said.

On September 7 this year, the Ministry of housing and urban rural development (Draft for comments) made it clear that the peoples governments of municipalities directly under the central government and municipalities divided into districts can establish a supervision system for housing rental funds, including rents and deposits. Recently, a number of places have introduced supervision measures on special accounts for long-term rental apartments. Chengdu and Chongqing have made it clear that if a tenant pays a rental to a housing rental enterprise for more than three months, the funds should be deposited into the regulatory account. However, the person in charge of the relevant departments in Chengdu frankly said that the measure can only control the enterprises with headquarters and accounts in the local area. In order to control the larger national companies, the headquarters location and local linkage are needed. Liu Lu believes that the long-term rental apartment belongs to an important area of peoples livelihood, and the explosion of thunder is very harmful. The tenants are not only difficult to refund, but also have no room to live in, which can easily aggravate the contradiction. Important areas of peoples livelihood should return to the nature of service industry, prevent excessive financialization, and focus on guiding enterprises to reduce leverage. At present, more and more tenants are waiting to deal with conflicts. I hope that the government can strictly supervise and control and give us a stable foothold. Said Mr. Liu, the tenant. Eggshell source: Xinhuanet editor in charge: Yang Bin_ NF4368

However, the person in charge of the relevant departments in Chengdu frankly said that the measure can only control the enterprises with headquarters and accounts in the local area. In order to control the larger national companies, the headquarters location and local linkage are needed.

Liu Lu believes that the long-term rental apartment belongs to an important area of peoples livelihood, and the explosion of thunder is very harmful. The tenants are not only difficult to refund, but also have no room to live in, which can easily aggravate the contradiction. Important areas of peoples livelihood should return to the nature of service industry, prevent excessive financialization, and focus on guiding enterprises to reduce leverage.

At present, more and more tenants are waiting to deal with conflicts. I hope that the government can strictly supervise and control and give us a stable foothold. Said Mr. Liu, the tenant.

Eggshell