Abstract: With the obvious increase in rents in some first-tier cities, long-term rental apartments have also been pushed to the forefront. As a new format in the development of China's housing rental market, long-term rental apartments have broken the long-standing C2C (landlord to tenant) model of China's rental market and are deeply loved by young tenants. With the explosion of the long-term rental apartment industry and the rise of consumer finance in the past three years, "rental loans", a credit product that uses rent as a credit, emerged at the historic moment. The following will introduce you to the relevant knowledge about long-term rental apartment rent. 1. What are the reasons for the high rents of long-term rental apartments?
1. The rents of long-term rental apartments are generally 10 to 20% higher than the rents of similar types of individual houses in the surrounding areas. The high rents of long-term rental apartments have a lot to do with their positioning as white-collar customers to a certain extent. From the perspective of tenants, those with a monthly income of more than 15,000 yuan are not actually very sensitive to apartment rental prices. Therefore, it is not difficult to understand that the overall rent of long-term rental apartments is higher than that of similar rental houses, because they are mainly targeted at young white-collar workers who value the rental experience and have strong rent affordability.
2. Branded apartments provide a variety of hardware and software facilities, and the renting customers are also screened, so they are actually great value for money. The refined services provided by long-term rental apartments, such as housekeeping services, free gyms, etc., all require costs, and these are often valued by white-collar tenants.
3. Difficulty in finding an apartment, opaque prices, high agency fees, no services, etc. are probably the pain points that most tenants must face when renting a house. However, some long-term rental apartments do not have agency fees, housekeeping services, etc. Providing public space, etc., solves these pain points well, which is also an important reason why they are popular with tenants.
Although the price of long-term rental apartments is higher than the market, the premium is acceptable based on the environment and services.
2. What is "rental loan" for long-term rental apartments
1. Rental loan is a kind of consumer credit business, which is its general nature.
Rental loan, also known as rental installment, is a personal consumption loan with the tenant as the borrower applying to a bank or other financial institution. The purpose of the loan is designated for the borrower to rent a certain rental house for personal consumption credit.
The loan amount is often the tenant’s total rent for 11 months, and the repayment method is equal principal and interest. In practice, the interest generated by the tenant's loan is often borne by the long-term rental apartment. Therefore, the tenant does not have to bear and pay the interest. The monthly repayment amount is equal to the monthly rent of the rental house. That is, the rental loan does not increase the tenant's Rental costs. In addition, the guarantee method of rental loans is often jointly guaranteed by the provider of the rental housing, that is, the long-term rental apartment.
2. Rent loan is a kind of consumer credit business that uses deferred services as the purpose of borrowing, and has its own particularity.
Analyzing the transaction structure of rental loans, in addition to having the attributes of general consumer credit products, it also has its own particularities.
The first is that the borrower (i.e. the tenant) applies for a loan from a financial institution for consumption. It is not a tangible commodity that can be taken away directly, but an intangible commodity, that is, house rental. Serve. Secondly, this kind of intangible consumer goods is not a one-time consumption immediately after purchase. The rental service needs to be continuously provided by the long-term rental apartment during the subsequent lease contract period. It is a deferred service commodity.
3. The value of rental loans
The essence of finance is the allocation of funds in time and space. Rental loans do not deviate from this essence. A well-developed rental loan is beneficial to tenants and Both long-term rental apartments and financial institutions have higher values.
1 is for tenants. In the absence of a rental loan product, it is generally a deposit of one to pay three. Calculated based on the average rental price of 1,800 yuan per month in Hangzhou, the tenant needs to pay a one-time deposit plus three months' rent when signing a contract, totaling 7,200 yuan. Quarterly payment is 5,400 yuan.
With the rental loan product, tenants only need to pay one month’s deposit plus one month’s rent totaling 3,600 yuan when signing a contract, and 1,800 yuan in subsequent monthly payments. Tenants can achieve easy monthly payments through this product, which relieves the pressure of paying high amounts all at once, and they do not have to bear the borrowing interest themselves, which does not increase any costs.
2 is for long-term rental apartments.
In the absence of rental loan products, the rental method of one deposit and three payments is often adopted. For a 12-month house rental business, the payment must be paid in four installments, namely 7,200 yuan at the time of signing, 5,400 yuan in the second quarter, and 3,400 yuan in the third quarter. 5,400 yuan for the first quarter and 5,400 yuan for the fourth quarter.
With the rental loan product, due to the support of credit funds from financial institutions, it can obtain one month’s deposit and one month’s rent paid by the tenant on the day it signs a contract with the tenant, which is 3,600 yuan, and the next day You will receive a November rent loan of 19,800 yuan from a financial institution (often deducting the interest paid on behalf of the long-term rental apartment).
It can be seen that through the rental loan product, although long-term rental apartments bear some interest on their behalf, they can quickly recover the rent receivable in the future and accelerate their cash flow.
3 is for financial institutions. As mentioned above, the housing rental market is a trillion-level market, and consumer credit based on rental housing is also an important market opportunity for financial institutions. Compared with tangible goods such as 3C installments, intangible service rental installments are easier to control risks to a certain extent, because for borrowers, such goods cannot be taken away, moved, or cashed.
At the same time, the current comprehensive rate of return on mainstream rental loans is around 13% annually, which is not a low rate of return for financial institutions. Considering the scenario, risk and return, rental loan is a good personal consumption credit product.
IV. The main risks of current rental loans
If 2017 is the first year of the development of long-term rental apartments in my country, then 2018 is the year of long-term rental apartment risk exposure. At present, the main risks of rental loans are:
1. The tenant applies for a rental loan without knowing it.
In order to pursue a "minimalist" and "senseless" experience in the loan application process, some long-term rental apartments and financial institutions have omitted many notification and confirmation processes, resulting in tenants being Applied for a rental loan. He was originally just an ordinary tenant, but he unknowingly became a borrower of a financial institution while renting a house.
2. Rental loan funds flow out of the main business of long-term rental apartments.
Long-term rental apartments can collect future rent receivable quickly, in advance and effectively through the financial product of rental loan.
However, after analyzing the basic profit model of long-term rental apartments, he also has a lot of future payables to pay, the most important of which are paying rent to the owner, renovating and optimizing the hard decoration, soft decoration and home appliances of the house. , and pay employees’ wages. However, some long-term rental apartments have used the future rent receivable collected in advance for other purposes, leaving the basic business format of long-term rental apartments.
3. The financing leverage of individual long-term rental apartments is too large.
At present, the paid-in capital of individual long-term rental apartments on the market is relatively low, but through the combined use of rental loans, factoring of rent receivables, mortgage loans, decoration loans and other products, their financing leverage has become very high. It’s huge, multiple financings for one house, and long-term financings happen from time to time. Once the occupancy rate decreases or the continuity of any financial product is interrupted, the entire company's capital chain may be broken at any time.
4. There are serious consequences when a tenant borrows money but has no room to rent.
Houses operated by long-term rental apartments are often obtained through renting out by the owner (leasing relationship) or entrusting them to rent out (agent-agent relationship). Rental housing is a commodity that cannot be taken away and needs to be continued during the lease period. The service provided gives the owner the opportunity to evict the tenant and terminate the rental if there is a dispute with the long-term rental apartment.
In addition, the rental rights of the same house are naturally inferior to the owner’s property rights in the house, which also provides a greater possibility for owners to bypass long-term rental apartments and directly have disputes with tenants.
This is also the worst result of several recent long-term rental apartments that have been hit hard: tenants applied for loans from financial institutions, and the long-term rental apartments quickly collected rents, but due to excessive expansion or outflow from the main business , resulting in failure to pay rent to the owner on time, the owner directly evicting the tenant, and the tenant bears the debt but has no room to rent.