In 8 years, Hangzhou’s long-term rental apartment house exploded and the rent loan was disclosed by the media. The tenants suddenly realized that they could still be harvested like this.
There are more intruders, the market is so big, and everyone has tried their best. Buying houses at high prices and renting them at low prices. This unsustainable corporate style of burning money was once practiced by long-term apartment companies.
When the competition is intensifying, long-term rental apartments usually collect houses from the owners at a price 30%-40% higher than the market price. The original market price of 6,000 yuan rent, long-term rental apartment can be won at 8,000 yuan, higher than the owner’s psychological price.
For the housing that was finally robbed, one day’s vacancy is a loss of money. Many long-term rental apartments reduce rents on the one hand to attract tenants, on the other hand fast renovation and N+1 partitions save costs. I can’t wait for the completion of the renovation the next day to achieve “check in with a bag”.
The mode of burning money lies in sufficient cash flow to “drag” competitors and gain sufficient market share. It is also the default that rents in first-tier cities will increase every year. According to industry insiders, the budget is based on the 10% annual rent increase.
Reality once again broke people’s illusions.
In the past year or two, the population outflow from first-tier cities such as Beijing and Shenzhen has gradually increased, showing negative growth. Many young people no longer think that only Beijing, Shanghai and Guangzhou can realize their ideals.
The decrease in the permanent population will inevitably bring about a decrease in rents, and the return to the original cost is far from expected. How can the money sprinkled in the early period be recovered without relying on rent loans, and how can the cash flow be maintained without relying on tenants to take over.
Sometimes what people want is simple. The tenant only wants a comfortable, clean and safe house, and the landlord only wants an intermediary who pays the rent on time without breaking the contract.
All these, long-term rental apartments have been promised and solutions have been given.
However, the lack of supervision, capital intervention, and the high-leverage cycle have changed the taste of simple needs and buried pits one after another.
Who cares about small retail investors when the meat is rotten in the pot and the money is in the pool?
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