In this outbreak, a large number of front-line cleaners and security guards chose to leave because of low wages (only 2,000-3,000 yuan per month), high risks, and pressure from their families.
Editor’s note: This article comes from Economic Observation Network , author: Cheng Peng, Hu Jing Ye , authorized reprint
During this period of “physical isolation” among the people, as a community management service provider, property companies have assumed corresponding responsibilities and faced new challenges. Through investigation, this article mainly explains the property industry’s value in “epidemic prevention”, the difficulties it faces, and policy recommendations in three directions, with a view to providing government and enterprises with decision-making references.
The value of property management industry in “epidemic prevention”
I. In the context of the nationwide “epidemic prevention”, property management transcends the boundaries of responsibility established by contracts and laws. It does not matter state-owned enterprises or private enterprises. It does not matter the cost and scope. It has played its due role in key elimination, material security, and coordination and isolation.
As a bridge between the community and the owner, the property company uses the natural advantages of being close to, familiar with, and trusting with the owner, relying on the ability to respond, persistence and communication, as well as the paramilitary style of coming soon and coming. It reflects the service value of the “last mile” and is integrated into the unified government epidemic prevention and control system.
Second, anti-cyclical and anti-risk properties have been recognized by the capital market. From the income side, the property service contract period is relatively long. Except for project extensions and some value-added services, which may have short-term effects, the overall income of property service companies will not be affected much, especially residential properties. From the perspective of expenditure, the purchase of a large number of anti-epidemic materials by property companies will increase costs in the short term, but the overall impact is limited from the perspective of the whole year.
From the situation on the trading day after the Spring Festival, the average performance of the property management industry outperforms the broader market in both the Hong Kong stock market and the domestic A-share market.
3. In recent years, with the emergence of some typical property service problems and the increasing demand for property services from owners, the contradictions existing between owners and property companies have emerged endlessly. The state, provinces and cities have successively introduced several Policies related to the property management industry regulate and constrain the operation and management behavior of property companies from various aspects.
During the “epidemic prevention” period, property companies have assumed irreplaceable social responsibilities, which helps government departments at all levels to think more when making related policies.
Fourth, the value of the industry and corporate brand has been enhanced. From the perspective of urban services, cities and scenic spots dedicated to global management and cities in highway service areasCity operators have become a great help to the government’s epidemic prevention work. From the perspective of community service, gradually establishing mutual trust with the owner through the fight against the epidemic situation also provides a chance for relaxation for the common contradictions and incomprehension between the owner and the property.
Fifth, new technology products such as non-contact elevators, disinfection robots, and intelligent temperature detection equipment will definitely enter the community. 5G, artificial intelligence and virtual reality, which have not been thoroughly understood for a long time, will continue to extend the field of non-contact property services. Property services and management are in the process of in-depth digitalization, automation and intelligent integration.
Difficulties faced by the property management industry in “epidemic prevention”
Difficulties can be summarized as difficulties in epidemic prevention and challenges after epidemic prevention.
Difficulties in “epidemic prevention” include:
I. Lack of supplies. Viruses came out suddenly, property facilities and equipment were incomplete, and it was very dangerous for employees to work without protection. Frontline service personnel of property companies faced group risks, and a little carelessness would endanger the entire service area.
In this outbreak, a large number of front-line cleaners and security guards chose to leave because of low wages (only 2,000-3,000 yuan per month), high risks, and pressure from their families.
Second, operating cost pressure. It mainly includes the cost of purchasing hard epidemic prevention materials and soft labor costs. From the perspective of the cost of purchasing materials, compared with the same period before the “epidemic”, the cost increase accounted for 10% -20%. If the average price of property costs is low, the cost will be higher. From the analysis of labor costs, being at the front line of epidemic prevention, overtime is common among employees, and in-service employees’ labor compensation expenses increase, overtime and welfare costs are incurred, recruitment of personnel will become difficult, and personnel costs will also rise.
Third, the difficulty of management and service increases. Insufficient epidemic prevention knowledge, inadequate material reserves, unequal rights and responsibilities in social responsibility commitments, and front-line staff’s epidemic prevention enforcement capabilities have brought challenges to the management of property companies. In terms of services, for example, when the owner is self-segregated, there will be some psychological problems. What help can property services provide under the guidance of the government? How to improve the level and temperature of property management in the implementation of prevention and control measures for express delivery and takeaways that cannot enter the community.
Fourth, soothe the cost. Because the virus is highly contagious, some family members of property employees do not agree to go out to work to avoid being infected, especially front-line positions that contact customers, such as cleaning, security, front desk, etc. In order to ensure the normal work during the epidemic, the property company needs to increase work subsidies to encourage employees to ensure the normal operation of the community.
V. Post vacancies. On the one hand, there is a shortage of labor, and personnel cannot be recruited; on the other hand, personnel are busy with epidemic prevention work, and routine facilities and equipment maintenance and inspection frequency are passively reduced.
6. Asynchronous disclosure of corporate and government outbreaks has caused property service companies to become embarrassed. If the property company reports first, the government is under pressure. If the government reports first, the property company has not yet notified.The owner will be dissatisfied with the property company and believes that the epidemic situation is concealed. How to synchronize, the government needs to take property companies into consideration.
The challenges after the epidemic prevention include:
1. In the long run, the biggest challenge for real estate companies is the pressure of normal property services, the pressure of continued epidemic prevention, and the shortage of staff after the epidemic control, the return of owners, and the resumption of work.
2. After the epidemic, the psychological “trauma” suffered by millions of owners (especially the communities where confirmed cases occur) will not fade away so quickly. It is worth thinking about how property service companies can optimize the service system in a targeted manner, avoid possible “service traps”, and discover new service value points.
3. As an important source of new property projects, the suspension of sales activities in the real estate industry will have continuity and lag. Due to the limited supply of real estate, it is difficult to predict the resumption of construction and the number of new buildings will decrease. In addition, due to the subsequent impact of the epidemic, people will expect jobs and income to decline, which will curb demand for housing. Overall, the number of new projects taken over by the property will inevitably be affected. At the same time, due to the slowdown in sales of real estate companies, the cash flow in the first half of the year has been seriously challenged, so the start-up fees and vacancy fees of real estate companies should be collected and it is bound to be unable to pay back in time.
Fourth, the “epidemic situation” provides real estate companies with an opportunity to think about new business layout, crisis awareness, emergency management awareness, business backup awareness, security mechanisms and management mechanisms in the face of risks, asset allocation mechanisms, and digital integration. Relationship with the Internet ecology, etc.
V. The epidemic has promoted the development of online office, and it has also harmed the survival of some small businesses. The superposition of the two may cause the leasing rate and rent level of commercial and office buildings to fall, which will affect such types. Collection of property service fees.
In view of the fact that property service companies as a bridge linking communities and owners during the epidemic have positive and important actions. After the epidemic, will governments at all levels rethink the value and function of property service companies in community governance? Putting forward new requirements and challenges is worth thinking about by enterprises.
Policy recommendations
The property management industry is an important component of community governance in China. We should increase our support for the property management industry. The basic idea of the policy is to propose a combination of length and precision and precise policy.
The short-term policy is dominated by emergency fiscal policies, which directly determines the supply of emergency epidemic prevention materials, the stability of front-line personnel, and the company’s cash flow. To this end, it is recommended:
1. In the special stage of epidemic prevention and control, it is suggested that the government include property service enterprises in the epidemic prevention and control system and the public management system of society, and the funds be supported by local finances.
2. It is recommended that the government protect the prevention and control of property staff. Provide property service companies with a uniform pricing of procurement channels for epidemic prevention materials, or establish a franchise priority purchase mechanism in the property management industry to protect the demand for epidemic prevention materials in property management areas, especially residential communities.
3. Encourage local governments to introduce a temporary subsidy policy. During the epidemic prevention and control period, property service companies in their jurisdictions will be given financial subsidies at a fixed amount or according to the area under management.
Fourth, the enterprise management measures in the epidemic prevention regulations, such as the closed management of the community and the setting of the entrances and exits of the community, need clear policy support. Before the policy is issued, the two committees of the community should provide assistance and cooperation.
5. Emphasize the leading role of party building and give full play to the vanguard role of grassroots party organizations and party members.
Actively implement the Ministry of Finance and the State Administration of Taxation issued the “Announcement No. 8 on the relevant tax policies for the prevention and control of pneumonia outbreaks of new coronavirus infections”, including property service companies in the category of life services and enjoy corresponding tax benefits .
Recommended long-term reform measures focus on the deep-seated plight of the property industry, including the role of property service companies in community governance, issues of power and responsibility, and the issue of a single business model. They also include issues such as emergency management of the industry exposed by the outbreak . To this end, it is recommended:
I. Clarify the role, rights and responsibilities of the property management industry in the community governance system, promote the participation of the government, society, the public and property service companies in negotiations, improve the community’s multi-subject governance system, and incorporate the property industry into life nationwide Required industry.
2. During and after the “epidemic prevention”, commending the heroes of the real estate industry in fighting the epidemic will help improve the image of the industry and alleviate the conflicts between owners and property companies.
III. Incorporate property management into the national emergency system, and make unified deployment and guarantees; the government shall formulate operational emergency plans to strengthen daily training and exercises for property service companies; strengthen protection and elimination of infectious diseases in property service companies Training in professional knowledge and skills in killing, etc .; establishing a more adequate emergency material reserve database, strengthening dynamic management of emergency reserve materials, and improving the material reserve and transfer system.
Fourth, actively promote the construction of smart communities. Accelerate the development of intelligent and informatized development of the property industry, and promote the implementation of 5G, artificial intelligence and virtual reality in property companies. Promote the construction of the owner’s information platform in the cities where conditions permit, and use government authorities, communities, and properties through different authorizations to lay the foundation for accurate and efficient prevention and control.
V. Issue policies to promote the transformation and upgrading of the property management industry. The “epidemic” fully reflects the shortcomings of the business service industry’s full service chain business layout. It is recommended that the government play a fundamental and decisive role in the market, encourage large property service companies to actively deploy new businesses, improve business backup awareness, and face security risks. And control awareness.