Where do long-term rental apartments go in 2020?
Shared by: Drop Butler Founder and CEO Feng Yuguang
Where do long-term rental apartments go in 2020? I believe everyone is as concerned and thinking as I am. I will discuss the possibility of apartment development with you from three aspects and ten aspects: supply side of the house, construction and operation, and customer demand. In 2019, the policy still prevails, but the traditional “land-development-sale” high turnover era has passed. With the state-owned assets, state-owned enterprises and developers joining the long-term rental industry, real estate has officially entered the “self-sustaining era” “.
Next, the trend of capital-assisted institutionalization is obvious, and the public offering of REITs has revived. All parties in long-term rental apartments are actively exploring new profit models in addition to “scale”, including prefabricated decoration, integrated soft furnishings, and smart apartments. Such concepts will become new profit points, and smart communities are expected to appear in large numbers in 2020.
1. More cities put leased community land into use
After the 19th National Congress, the country has selected 11 cities for pure leased land and 23 cities for self-held land. More than 30 provinces and cities have issued new policies on leased housing from both ends of supply and demand to increase the supply of leased residential land. Today, R4 land lease products, some self-held land lease products and collective construction land products in these cities will be built into the market one after another in 2020. The long-term rental apartment industry has ushered in a second outbreak of incremental supply in many cities.
With the landing of the property, the “non-residential sublet” policy has completed its first market practice, and the related land and real estate policies will become more operable. After the implementation of the “non-residential sublet” policy, a number of relevant departments participated in the process of land acquisition—design—construction—completion and delivery—operation, practiced each other, and perfected policies. Many parties in the industry will gradually form normative consensus.
The government encourages all types of enterprises to convert idle stocks in the market. In the future, the “non-residential sublet” qualification will be opened to more outstanding non-state-owned enterprises, and social forces will be fully tapped to encourage market entry. For example, the public rental housing REITs policy implemented in Shanghai has solved the Songjiang collective construction land and some state-owned factory stock assets, and also solved the housing problem of non-buyers.
In short, after 2020, the “non-residential sublet” policy will be implemented in multiple cities, and large leasing communities will enter the market, which will further standardize, enterprise, and intensify the leasing market.
2 、 Technology helps financial innovation, public offering of REITs has begun trials in state-owned enterprises
Long-term rental apartments have “paid land, expensive money, and slow turnover” and other development pain points, and urgently need to solve the problem of closed-loop cash. However, the financing channels for housing enterprises are limited and the financing interest rate is high. Currently, the only financial instruments that can be selected are ABS. However, ABS’s slow return to capital, narrow options, and weak surpluses cannot really solve the industry’s problems. For this,The consensus in the industry is to create a public offering of REITs-like financial instruments to achieve a closed loop of cash flow, thereby opening up the second pulse of real estate supervisors.
Public offering of REITs is jointly expected by the industry, the government and the people. By promoting REITs, the long-term rental industry can obtain stable underlying cash flow and quickly guarantee operations, risks, and profits; the government can resolve the current financial risks and revitalize local government debt; the people can increase new investment channels and share the rise of large countries and urbanization Benefits of the movement.
During the launch of the Four Trillion Plan in 2008, the Ministry of Housing and Urban-Rural Development wrote the real estate investment trust fund into the document. On April 25, 2018, the Securities Regulatory Commission and the Ministry of Housing and Construction jointly issued the “Notice on Promoting Securitization of Housing Leasing Assets”. After the housing and land supply issues were resolved at the policy level, financial support has become the biggest obstacle to the development of the industry. . In January 2019, the Shanghai Stock Exchange table also stated that it will promote the trial of public offering of REITs and accelerate the development of housing rental REITs. However, the landing of REITs in China has always been unsatisfactory. In the first half of 19, it was difficult to deliver. At the end of 19 years, the pilot of REITs in the industry revived, and the fetal movement was possible again.
2020 is the year of the collective effort of the national team. Financial instrument innovation must be brought up again. With the joint promotion of banks, insurance, securities firms and other financial institutions, there will be public offering of REITs or similar financial products, and priority will be given to state-owned enterprises. On a trial basis, realize a large closed loop in the leasing industry and a small closed loop within the enterprise.
3. The capital market is fierce. The charter mode is difficult to finance
In the past, brand apartments relied on financing—high-priced chartering—rapid expansion—refinancing to complete the accumulation of “0 to 1.” After the developers joined, the threshold for the lease financing model was raised, the cost of housing acquisitions in the industry rose rapidly, and the scale and leverage were difficult to balance. As a result, rents rose across the board in 2018, and rent loans stormed, and a large number of rental brands were killed.
Today, state-owned and state-owned enterprises and other branded apartments with more financial advantages have also entered. The industry capital is concentrated in the head, and the tail competitors are eliminated. The business model of chartered financing will be more difficult in the future.
With the closure of chartered financing roads and the industry’s entry into deep water, long-term rental apartments are looking for ways to survive. In 2019, Qingke, eggshell and other head apartments have actively tried to go public, but the reason for the listing is not because the industry is profitable, but to seek more funds to support mergers and acquisitions, expand scale and maintain operations.camp. For branded apartments, listing is like a rocket, rising faster and falling faster. After the listing of well-operated apartments, capital support has made the ascent channel more unobstructed; the poor management of the apartments with poor operations will also be exposed.
In 2020, the investment environment is still tense overall, the phenomenon of long-term rental apartment listings will continue to occur, and mergers and acquisitions will gradually increase. Corporate mergers and acquisitions will be more rational and critical.
Centralized apartments have certain M & A value, but the investment standards are more rational and strict. Specific mergers and acquisitions need to consider asset compliance and profitability, such as the lack of compliance of early-stage centralized apartments, and the land use properties and building fire configuration of apartment properties are at risk. In addition, PE is calculated based on PE or future rental income. However, the industry’s consensus on the premium and asset transaction standards for centralized apartments has not yet reached consensus, which has also reduced the industry’s transaction efficiency.
Compared with standardized leases for big-name apartments, decentralized apartment leases generally have problems such as chaotic time of leases, large differences in conditions, unequal rights and obligations between different leases, difficult product interactions, and large legal risks, making it difficult to quantify their mergers and acquisitions. value. In 2019, there were two large-scale decentralized apartment mergers and acquisitions: Eggshell apartment merger and acquisition of Hangzhou’s love rent, and Maijia apartment merger and acquisition of opinions, both suffered varying degrees of loss.
4, More high-end talents across industries, Enter the long-term rental apartment industry
2019 is a year of shock for the senior management of real estate developers. Developer apartments continue to “dig people” habits, eager to achieve operational results, but the apartment business has not yet risen to the main strategy, the industry’s overall cash flow is tight, Constantly reducing costs in actual operations has resulted in a high degree of mobility of talent.
The flow of talents does not equal the loss of talents. The pool of talents in the long-term rental industry is growing. The number of talents flowing from traditional developers to state-owned apartment and brand apartments is increasing, and their Chinese enterprises are more selective. Meanwhile, the Internet, finance, Executives in non-apartment industries such as real estate have also taken the initiative to enter the long-term rental sector, and the industry’s potential is optimistic.
It should be noted that at present, high-end talents have not played their due role. From the perspective of employers, the income of executives does not match the expected returns that can be brought, and the understanding of the apartment leadership on the market has also affected. The career fate of executives.
In short, as the maturity of the industry is improved, more high-end talents across industries will take the initiative to enter in 2020, the talent flow will be more active and will not leave the circle, and the talent pool will continue to grow; some small and medium developers have opportunities Become a dark horse and take the turn to overtake.
5. Assembly decoration of apartment, Zigzag forward in trial and error
In recent years, the state has vigorously promoted the development of prefabricated buildings, and clearly put forward the specific goal of “striving for 10 years to make prefabricated buildings account for 30% of newly-built buildings”. Currently installedThe repaired upstream and downstream supply chains are booming. In recent years, a number of fast-growing startups have appeared, such as ponies, home furnishings and other brands. Some traditional decoration companies have also begun to make assembly-type decoration, such as Yaxia. Shares, golden mantis, etc.
Assembled interior can achieve centralized procurement, uniform decoration, benzene and aldehyde-free, ready-to-install, and has the advantages of saving time and effort. For example, the second structure and the third structure are considered as a whole during decoration, and the construction is tightly connected. , Reduce repeated investment and be able to deliver in time; standardized module construction, just like Lego toys, not only has reasonable space functions, but also lower costs; new material research and development, construction technology, supply chain resource integration, etc., also occur in the interior field.
But limited by the overall development level of the hardcover industry, prefabricated decoration will move forward in twists and turns for three reasons: 1. The cost of prefabricated decoration is 10 ~ 20% more expensive than traditional decoration, and the one-time investment is greater than traditional construction. Second, many benefits are relatively hidden, and it is difficult for customers to feel them; Third, most of the first companies entering the industry are small and medium-sized companies, and the quality of construction is still growing, and some customers experience gaps with expectations after experience.
In general, the premise of prefabricated decoration and long-term rental apartments match very well. The large-scale rental community + prefabricated building model will deepen the run-in, but is limited by the overall development level of the hardware and software industry. Forward.
6. Recognize the value of soft furnishings for apartments, Agree on the integration of the design of the operation perspective
In the past, soft furnishings were at the end of apartment service and were not valued. Now the industry realizes that the value of soft furnishings determines the rental rate, the soft furnishings quality determines the lease renewal rate, and the soft furnishing efficiency determines the opening period. Soft clothing has also changed from simple procurement to the overall thinking of design, material selection, production, supporting, and display integration, as well as cross-border integration of furniture, home appliances, fabrics, and accessories.
Mature soft outfit design includes three points:
-
One-stop procurement-reduce selection costs and communication costs;
-
Integrated design——flexible disassembly, modular design, standardized design process;
-
Total cost of life considerations—mine needs, determine intent plans; in-depth communication, design solutions; build physical model rooms, and issue budget reports.
Modular and standardizedThe core of the integrated soft outfit is to design the house from an operational point of view, in order to save manpower and spare parts costs, reduce later operation and maintenance costs, and then reduce the cost of the entire operation cycle.
At present, the industry has emerged the “Water Drop Story” that can integrate the upstream and downstream supply chain of soft furnishings and provide a professional one-stop soft furnishing solution. .
7. Entrusted management of light assets, Continuous innovation and improvement of cooperation model
At the end of 2018, entrepreneurial condominiums were challenged by both the cold winter of capital and the difficulty of self-employment. They were transformed into light assets in 2019. In 2019, they were called “the first year of light assets.” However, it is also difficult to be stable and fast in light loading. We find that light-asset “trust management” is more difficult than the original charter business for two reasons.
1. Domestic apartment brands have a weak awareness and low brand added value. Compared with the two major advantages of standardized management of international hotels and endorsement by large enterprises, domestic branded apartments are still growing savagely, their origins are relatively “grassroots”, and they lack the recognition of big brands and big capital. Under the influence of negative storms, it is difficult for tenants to develop trust in the short term.
2. Although some cases of asset custody have been explored and concluded, the rights and obligations of both parties A and B are unclear, the distribution of profits is not clear, and the operating rules are still being explored, which increases the barriers to closing. Once there is a problem in the management and operation of the small entrepreneurial apartment, there will also be risks to the investor’s earnings, leading large companies to dare not easily invest high amounts of money, and small apartments cannot find the trust and support of capital.
In the case where there is demand from both parties, the industry will definitely take the initiative to find solutions that are mutually recognized by both parties. Among them, investment-type hosting and profit-sharing commission are the most likely.
Investment-type hosting requires companies to actively participate in some hard-equipped and soft-equipped investments, share operating risks and benefits with the apartment, and the apartment has also changed from a “property” to an “operator”. Both parties are based on tenants. Promotion, procurement, cleaning, service, brand awareness and other links cooperate on the entire chain, with the same direction to form competition barriers.
Divided hosting refers to digitizing, real-time, and visualizing information such as housing conditions, rental conditions, and income and expenditure of funds, so that owners and supply chain ends that are far away can directly reach houses, tenants and rents. Situation, flexible improvement and adjustment at any time. At the same time, through air distribution and custom distribution functions, each rental transaction is real.It is now synchronized and distributed, which strengthens the control of cash flow by all parties, thereby establishing the trust of the owners, operators, and the supply chain, and providing the possibility for business model innovation.
8, More categories of smart hardware are entering the apartment sector, evolving from improving management efficiency to improving rental experience
The intelligentization of apartments can effectively improve efficiency, save manpower, and improve tenants’ physical examination. Therefore, even if the initial investment is high, it has become the current consensus and standard in the industry, from smart communities to head apartments to down to The two decentralized landlords are embracing intelligence one after another. In the future, the intelligentization of smart buildings, smart communities, and rental communities will become the new industry development direction.
The intelligent construction of apartments focuses on both software and hardware.
Software refers to using the SaaS system to solve many pain points in apartment management such as meter reading, billing, urging, rent collection, maintenance, cleaning, etc., and to achieve the coverage and standardization of the entire process of apartment operations from renting, signing to cancellation Operations to reduce labor costs such as stewardship and finance, and improve management efficiency.
Hardware refers to the large-scale use of smart products such as smart door locks, electricity meters, monitoring, identification of witnesses, smoke alarms, and automatic home appliance warranty, using big data and AI technology to achieve scale management. In the future, more types of intelligent hardware will be connected to the Internet of Things in succession, greatly improving the rental experience.
9, Large rental community will innovate in the model of customer acquisition, rental traffic will further differentiate
For apartments, vacancy is the biggest hidden cost killer. Any customer channel flow that can reduce the vacancy rate is worth trying. At first it was the era of decentralized listings and personal second-hosts. Online listing promotion was based on 58 customers, while offline was based on intermediaries. As brand apartments and “national teams” have been added one after another, the existing old listing levels have been opened up, and tenants have a wider range of choices. At the same time, post-90s tenants are more accustomed to online listings and complete consumption, so they rely solely on 58. The shell model can no longer meet the development needs of the entire industry.
When the flow of traditional channels stagnates, the market provides a number of solutions for traffic differentiation and innovation, such as: 58 ads on Lehu and V Territory, and Baidu SEM, which increases the density of listings through the franchise model, thereby expanding traffic; Based on social fission nationwide marketing, Water Drop Collector uses AI assistants to actively mine potential customers in the circle of friends and benchmark private domain traffic. In addition to the above, self-media traffic and corporate customer traffic have also become new traffic growth points.
Based on this, the long-term rental apartment industry has also divided into two main bodies: apartment operators and apartment platform providers. The operator is the apartment operation company that holds the listing, such as ZR, Eggshell, Rubik’s Cube, etc .; while the platform developer develops the apartment SaaS system, which is provided to the apartment operation company to help the apartment increase the occupancy rate by accurately acquiring customers through traffic.
10, Rights of tenants will be protected by law, Apartment companies will gradually establish tenant blacklists
House prices are high, and renting has become a new way of life. However, the release of false listings, malicious deductions of security deposits, illegal use of housing rent loans, and forced evictions of tenants, etc., and bad currencies expel good coins, which not only harms the interests of tenants. , Also affected the brand image, the standardization of the industry has long been a voice.
At the end of 2019, the Ministry of Housing and Construction and other 6 departments jointly issued the Opinions on Rectifying and Regulating the Order of the Housing Leasing Market, regulating the operating behaviors of the main entities in the housing leasing market, and comprehensively protecting the legitimate rights and interests of all parties to the housing lease, especially the lessees. The “Opinions” covers various aspects such as house management, renovation, security, finance, services, dispute resolution, etc., and makes requirements on the model texts of housing lease contracts, regulating agency service charges, and strengthening industry self-discipline.
On the other hand, apartment companies will gradually establish their own tenant blacklists and share them with the industry. This blacklist will affect the “low-value tenants” that affect the rights and interests of other tenants, such as severe violations of laws and regulations, high risk and large debt or other special tenants, and identify them before moving in to prevent operational risk The purpose of serving quality tenants.
2019 is a year of shock for the senior management of real estate developers. Developer apartments continue to “dig people” habits, eager to achieve operational results, but the apartment business has not yet risen to the main strategy, the industry’s overall cash flow is tight, Constantly reducing costs in actual operations has resulted in a high degree of mobility of talent.
The flow of talents does not equal the loss of talents. The pool of talents in the long-term rental industry is growing. The number of talents flowing from traditional developers to state-owned apartment and brand apartments is increasing, and their Chinese enterprises are more selective. Meanwhile, the Internet, finance, Executives in non-apartment industries such as real estate have also taken the initiative to enter the long-term rental sector, and the industry’s potential is optimistic.
It should be noted that at present, high-end talents have not played their due role. From the perspective of employers, the income of executives does not match the expected returns that can be brought, and the understanding of the apartment leadership on the market has also affected. The career fate of executives.
In short, as the maturity of the industry is improved, more high-end talents across industries will take the initiative to enter in 2020, the talent flow will be more active and will not leave the circle, and the talent pool will continue to grow; some small and medium developers have opportunities Become a dark horse and take the turn to overtake.
5. Assembly decoration of apartment, Zigzag forward in trial and error
In recent years, the state has vigorously promoted the development of prefabricated buildings, and clearly put forward the specific goal of “striving for 10 years to make prefabricated buildings account for 30% of newly-built buildings”. Currently installedThe repaired upstream and downstream supply chains are booming. In recent years, a number of fast-growing startups have appeared, such as ponies, home furnishings and other brands. Some traditional decoration companies have also begun to make assembly-type decoration, such as Yaxia. Shares, golden mantis, etc.
Assembled interior can achieve centralized procurement, uniform decoration, benzene and aldehyde-free, ready-to-install, and has the advantages of saving time and effort. For example, the second structure and the third structure are considered as a whole during decoration, and the construction is tightly connected. , Reduce repeated investment and be able to deliver in time; standardized module construction, just like Lego toys, not only has reasonable space functions, but also lower costs; new material research and development, construction technology, supply chain resource integration, etc., also occur in the interior field.
But limited by the overall development level of the hardcover industry, prefabricated decoration will move forward in twists and turns for three reasons: 1. The cost of prefabricated decoration is 10 ~ 20% more expensive than traditional decoration, and the one-time investment is greater than traditional construction. Second, many benefits are relatively hidden, and it is difficult for customers to feel them; Third, most of the first companies entering the industry are small and medium-sized companies, and the quality of construction is still growing, and some customers experience gaps with expectations after experience.
In general, the premise of prefabricated decoration and long-term rental apartments match very well. The large-scale rental community + prefabricated building model will deepen the run-in, but is limited by the overall development level of the hardware and software industry. Forward.
6. Recognize the value of soft furnishings for apartments, Agree on the integration of the design of the operation perspective
In the past, soft furnishings were at the end of apartment service and were not valued. Now the industry realizes that the value of soft furnishings determines the rental rate, the soft furnishings quality determines the lease renewal rate, and the soft furnishing efficiency determines the opening period. Soft clothing has also changed from simple procurement to the overall thinking of design, material selection, production, supporting, and display integration, as well as cross-border integration of furniture, home appliances, fabrics, and accessories.
Mature soft outfit design includes three points:
-
One-stop procurement-reduce selection costs and communication costs;
-
Integrated design——flexible disassembly, modular design, standardized design process;
-
Total cost of life considerations—mine needs, determine intent plans; in-depth communication, design solutions; build physical model rooms, and issue budget reports.
Modular and standardizedThe core of the integrated soft outfit is to design the house from an operational point of view, in order to save manpower and spare parts costs, reduce later operation and maintenance costs, and then reduce the cost of the entire operation cycle.
At present, the industry has emerged the “Water Drop Story” that can integrate the upstream and downstream supply chain of soft furnishings and provide a professional one-stop soft furnishing solution. .
7. Entrusted management of light assets, Continuous innovation and improvement of cooperation model
At the end of 2018, entrepreneurial condominiums were challenged by both the cold winter of capital and the difficulty of self-employment. They were transformed into light assets in 2019. In 2019, they were called “the first year of light assets.” However, it is also difficult to be stable and fast in light loading. We find that light-asset “trust management” is more difficult than the original charter business for two reasons.
1. Domestic apartment brands have a weak awareness and low brand added value. Compared with the two major advantages of standardized management of international hotels and endorsement by large enterprises, domestic branded apartments are still growing savagely, their origins are relatively “grassroots”, and they lack the recognition of big brands and big capital. Under the influence of negative storms, it is difficult for tenants to develop trust in the short term.
2. Although some cases of asset custody have been explored and concluded, the rights and obligations of both parties A and B are unclear, the distribution of profits is not clear, and the operating rules are still being explored, which increases the barriers to closing. Once there is a problem in the management and operation of the small entrepreneurial apartment, there will also be risks to the investor’s earnings, leading large companies to dare not easily invest high amounts of money, and small apartments cannot find the trust and support of capital.
In the case where there is demand from both parties, the industry will definitely take the initiative to find solutions that are mutually recognized by both parties. Among them, investment-type hosting and profit-sharing commission are the most likely.
Investment-type hosting requires companies to actively participate in some hard-equipped and soft-equipped investments, share operating risks and benefits with the apartment, and the apartment has also changed from a “property” to an “operator”. Both parties are based on tenants. Promotion, procurement, cleaning, service, brand awareness and other links cooperate on the entire chain, with the same direction to form competition barriers.
Divided hosting refers to digitizing, real-time, and visualizing information such as housing conditions, rental conditions, and income and expenditure of funds, so that owners and supply chain ends that are far away can directly reach houses, tenants and rents. Situation, flexible improvement and adjustment at any time. At the same time, through air distribution and custom distribution functions, each rental transaction is real.It is now synchronized and distributed, which strengthens the control of cash flow by all parties, thereby establishing the trust of the owners, operators, and the supply chain, and providing the possibility for business model innovation.
8, More categories of smart hardware are entering the apartment sector, evolving from improving management efficiency to improving rental experience
The intelligentization of apartments can effectively improve efficiency, save manpower, and improve tenants’ physical examination. Therefore, even if the initial investment is high, it has become the current consensus and standard in the industry, from smart communities to head apartments to down to The two decentralized landlords are embracing intelligence one after another. In the future, the intelligentization of smart buildings, smart communities, and rental communities will become the new industry development direction.
The intelligent construction of apartments focuses on both software and hardware.
Software refers to using the SaaS system to solve many pain points in apartment management such as meter reading, billing, urging, rent collection, maintenance, cleaning, etc., and to achieve the coverage and standardization of the entire process of apartment operations from renting, signing to cancellation Operations to reduce labor costs such as stewardship and finance, and improve management efficiency.
Hardware refers to the large-scale use of smart products such as smart door locks, electricity meters, monitoring, identification of witnesses, smoke alarms, and automatic home appliance warranty, using big data and AI technology to achieve scale management. In the future, more types of intelligent hardware will be connected to the Internet of Things in succession, greatly improving the rental experience.
9, Large rental community will innovate in the model of customer acquisition, rental traffic will further differentiate
For apartments, vacancy is the biggest hidden cost killer. Any customer channel flow that can reduce the vacancy rate is worth trying. At first it was the era of decentralized listings and personal second-hosts. Online listing promotion was based on 58 customers, while offline was based on intermediaries. As brand apartments and “national teams” have been added one after another, the existing old listing levels have been opened up, and tenants have a wider range of choices. At the same time, post-90s tenants are more accustomed to online listings and complete consumption, so they rely solely on 58. The shell model can no longer meet the development needs of the entire industry.
When the flow of traditional channels stagnates, the market provides a number of solutions for traffic differentiation and innovation, such as: 58 ads on Lehu and V Territory, and Baidu SEM, which increases the density of listings through the franchise model, thereby expanding traffic; Based on social fission nationwide marketing, Water Drop Collector uses AI assistants to actively mine potential customers in the circle of friends and benchmark private domain traffic. In addition to the above, self-media traffic and corporate customer traffic have also become new traffic growth points.
Based on this, the long-term rental apartment industry has also divided into two main bodies: apartment operators and apartment platform providers. The operator is the apartment operation company that holds the listing, such as ZR, Eggshell, Rubik’s Cube, etc .; while the platform developer develops the apartment SaaS system, which is provided to the apartment operation company to help the apartment increase the occupancy rate by accurately acquiring customers through traffic.
10, Rights of tenants will be protected by law, Apartment companies will gradually establish tenant blacklists
House prices are high, and renting has become a new way of life. However, the release of false listings, malicious deductions of security deposits, illegal use of housing rent loans, and forced evictions of tenants, etc., and bad currencies expel good coins, which not only harms the interests of tenants. , Also affected the brand image, the standardization of the industry has long been a voice.
At the end of 2019, the Ministry of Housing and Construction and other 6 departments jointly issued the Opinions on Rectifying and Regulating the Order of the Housing Leasing Market, regulating the operating behaviors of the main entities in the housing leasing market, and comprehensively protecting the legitimate rights and interests of all parties to the housing lease, especially the lessees. The “Opinions” covers various aspects such as house management, renovation, security, finance, services, dispute resolution, etc., and makes requirements on the model texts of housing lease contracts, regulating agency service charges, and strengthening industry self-discipline.
On the other hand, apartment companies will gradually establish their own tenant blacklists and share them with the industry. This blacklist will affect the “low-value tenants” that affect the rights and interests of other tenants, such as severe violations of laws and regulations, high risk and large debt or other special tenants, and identify them before moving in to prevent operational risk The purpose of serving quality tenants.
In the past, soft furnishings were at the end of apartment service and were not valued. Now the industry realizes that the value of soft furnishings determines the rental rate, the soft furnishings quality determines the lease renewal rate, and the soft furnishing efficiency determines the opening period. Soft clothing has also changed from simple procurement to the overall thinking of design, material selection, production, supporting, and display integration, as well as cross-border integration of furniture, home appliances, fabrics, and accessories.
Mature soft outfit design includes three points:
-
One-stop procurement-reduce selection costs and communication costs;
-
Integrated design——flexible disassembly, modular design, standardized design process;
-
Total cost of life considerations—mine needs, determine intent plans; in-depth communication, design solutions; build physical model rooms, and issue budget reports.
Modular and standardizedThe core of the integrated soft outfit is to design the house from an operational point of view, in order to save manpower and spare parts costs, reduce later operation and maintenance costs, and then reduce the cost of the entire operation cycle.
At present, the industry has emerged the “Water Drop Story” that can integrate the upstream and downstream supply chain of soft furnishings and provide a professional one-stop soft furnishing solution. .
7. Entrusted management of light assets, Continuous innovation and improvement of cooperation model
At the end of 2018, entrepreneurial condominiums were challenged by both the cold winter of capital and the difficulty of self-employment. They were transformed into light assets in 2019. In 2019, they were called “the first year of light assets.” However, it is also difficult to be stable and fast in light loading. We find that light-asset “trust management” is more difficult than the original charter business for two reasons.
1. Domestic apartment brands have a weak awareness and low brand added value. Compared with the two major advantages of standardized management of international hotels and endorsement by large enterprises, domestic branded apartments are still growing savagely, their origins are relatively “grassroots”, and they lack the recognition of big brands and big capital. Under the influence of negative storms, it is difficult for tenants to develop trust in the short term.
2. Although some cases of asset custody have been explored and concluded, the rights and obligations of both parties A and B are unclear, the distribution of profits is not clear, and the operating rules are still being explored, which increases the barriers to closing. Once there is a problem in the management and operation of the small entrepreneurial apartment, there will also be risks to the investor’s earnings, leading large companies to dare not easily invest high amounts of money, and small apartments cannot find the trust and support of capital.
In the case where there is demand from both parties, the industry will definitely take the initiative to find solutions that are mutually recognized by both parties. Among them, investment-type hosting and profit-sharing commission are the most likely.
Investment-type hosting requires companies to actively participate in some hard-equipped and soft-equipped investments, share operating risks and benefits with the apartment, and the apartment has also changed from a “property” to an “operator”. Both parties are based on tenants. Promotion, procurement, cleaning, service, brand awareness and other links cooperate on the entire chain, with the same direction to form competition barriers.
Divided hosting refers to digitizing, real-time, and visualizing information such as housing conditions, rental conditions, and income and expenditure of funds, so that owners and supply chain ends that are far away can directly reach houses, tenants and rents. Situation, flexible improvement and adjustment at any time. At the same time, through air distribution and custom distribution functions, each rental transaction is real.It is now synchronized and distributed, which strengthens the control of cash flow by all parties, thereby establishing the trust of the owners, operators, and the supply chain, and providing the possibility for business model innovation.
8, More categories of smart hardware are entering the apartment sector, evolving from improving management efficiency to improving rental experience
The intelligentization of apartments can effectively improve efficiency, save manpower, and improve tenants’ physical examination. Therefore, even if the initial investment is high, it has become the current consensus and standard in the industry, from smart communities to head apartments to down to The two decentralized landlords are embracing intelligence one after another. In the future, the intelligentization of smart buildings, smart communities, and rental communities will become the new industry development direction.
The intelligent construction of apartments focuses on both software and hardware.
Software refers to using the SaaS system to solve many pain points in apartment management such as meter reading, billing, urging, rent collection, maintenance, cleaning, etc., and to achieve the coverage and standardization of the entire process of apartment operations from renting, signing to cancellation Operations to reduce labor costs such as stewardship and finance, and improve management efficiency.
Hardware refers to the large-scale use of smart products such as smart door locks, electricity meters, monitoring, identification of witnesses, smoke alarms, and automatic home appliance warranty, using big data and AI technology to achieve scale management. In the future, more types of intelligent hardware will be connected to the Internet of Things in succession, greatly improving the rental experience.
9, Large rental community will innovate in the model of customer acquisition, rental traffic will further differentiate
For apartments, vacancy is the biggest hidden cost killer. Any customer channel flow that can reduce the vacancy rate is worth trying. At first it was the era of decentralized listings and personal second-hosts. Online listing promotion was based on 58 customers, while offline was based on intermediaries. As brand apartments and “national teams” have been added one after another, the existing old listing levels have been opened up, and tenants have a wider range of choices. At the same time, post-90s tenants are more accustomed to online listings and complete consumption, so they rely solely on 58. The shell model can no longer meet the development needs of the entire industry.
When the flow of traditional channels stagnates, the market provides a number of solutions for traffic differentiation and innovation, such as: 58 ads on Lehu and V Territory, and Baidu SEM, which increases the density of listings through the franchise model, thereby expanding traffic; Based on social fission nationwide marketing, Water Drop Collector uses AI assistants to actively mine potential customers in the circle of friends and benchmark private domain traffic. In addition to the above, self-media traffic and corporate customer traffic have also become new traffic growth points.
Based on this, the long-term rental apartment industry has also divided into two main bodies: apartment operators and apartment platform providers. The operator is the apartment operation company that holds the listing, such as ZR, Eggshell, Rubik’s Cube, etc .; while the platform developer develops the apartment SaaS system, which is provided to the apartment operation company to help the apartment increase the occupancy rate by accurately acquiring customers through traffic.
10, Rights of tenants will be protected by law, Apartment companies will gradually establish tenant blacklists
House prices are high, and renting has become a new way of life. However, the release of false listings, malicious deductions of security deposits, illegal use of housing rent loans, and forced evictions of tenants, etc., and bad currencies expel good coins, which not only harms the interests of tenants. , Also affected the brand image, the standardization of the industry has long been a voice.
At the end of 2019, the Ministry of Housing and Construction and other 6 departments jointly issued the Opinions on Rectifying and Regulating the Order of the Housing Leasing Market, regulating the operating behaviors of the main entities in the housing leasing market, and comprehensively protecting the legitimate rights and interests of all parties to the housing lease, especially the lessees. The “Opinions” covers various aspects such as house management, renovation, security, finance, services, dispute resolution, etc., and makes requirements on the model texts of housing lease contracts, regulating agency service charges, and strengthening industry self-discipline.
On the other hand, apartment companies will gradually establish their own tenant blacklists and share them with the industry. This blacklist will affect the “low-value tenants” that affect the rights and interests of other tenants, such as severe violations of laws and regulations, high risk and large debt or other special tenants, and identify them before moving in to prevent operational risk The purpose of serving quality tenants.