Welcome to the wechat subscription number of chuangshiji
By Lin Xiaoqian
Source: zinc Finance
For long-term apartment platforms, the outbreak at the end of 2019 is like opening Pandora’s box. Recently, the head of the long rental apartment platform eggshell storm, finally revealed to the public hidden in the long rental apartment platform under the bright appearance of chaos.
It’s not just eggshell apartments that drag themselves into the mire.
As early as 2018, Dingjia, a long-term rental apartment in Hangzhou, which has obtained tens of millions of financing, went bankrupt due to the rupture of its capital chain, resulting in the “rent loan” problem, and 4000 tenants were damaged.
Two years later, the explosion of long-term apartments has spread to leading enterprises. In the first half of the year, the first group of young people in the long-term rental platform apartment listed in the United States was hit by thunder in the first half of the year. The first scale long-term apartment in China was easily exposed in the early stage of the epidemic and became a “double-sided person”. Recently, some landlords reported that they had not received the rent.
What’s more, they rent smaller apartments.
In the first half of 2020, 16 small and medium-sized long-term rental apartment platforms such as i-le apartment, hi-ke apartment, sancaijia and Gulfstream international have been suspended due to capital chain problems. The long-term apartment platform, which is hard to survive, is also struggling to survive.
The core problem is “rent loan”. The tenant signs a loan contract with the financial institution. The financial institution pays the rent of one year in advance to the long-term apartment, and the tenant repays the loan to the financial institution on a monthly basis.
The renters flow into the long-term rental platform through the whole year’s rent of loans from financial institutions. This part of unregulated funds is used to collect houses at high prices and expand the scale. Once the cash flow is affected by some factors, the capital chain of long-term apartments will be broken.
There are many platforms that have faced or have similar crises.
1. At ease
Founded in October 2011, the company was independent from the chain family in 2016. At present, it has five product lines, such as free friend family and free whole rent. In 2018, it received 400 million yuan of round a financing, and in 2019, it received $500 million in round B financing.
With the ease of “intermediary” lineage, relying on the original housing resources, we can run rapidly in the world of long-term rental apartments.
At present, it is the largest long-term rental apartment in China. In December 2019, the number of houses freely disclosed to the public reached 1 million, which is larger than the sum of the second and ninth places in the industry.
However, it is not “free and easy”. Since last year, it has directed and acted in a big play by himself: Although he has repeatedly asked the landlord to reduce the rent, the rent of the tenant has remained at the original level, and the price difference has directly flowed into the pocket of the platform; if the landlord does not agree to the rent reduction, he will inform the tenant to move out of the house and terminate the platform contract on the ground that the landlord wants to sell the house.
The reasons behind it are: too much rent expenditure burden caused by the rapid expansion in the early stage, the low occupancy rate of the rental market, and the shortage of funds caused by the behavior of “high in and low out”.
The tragic situation of eggshell can be clearly seen. At present, it has stopped many kinds of “rent loan” services such as free installment and easy payment.
In 2020, after receiving a new round of strategic investment of US $1 billion, we can freely own the highest valuation of US $6.6 billion in the industry. We have successively acquired Beck apartment and Anxin apartment, and started a new round of development. On December 4, the company launched the “warm winter protection” plan on app, trying to swallow up the occupied areas of eggshells and appease those workers who were hurt by eggshells.
But can the same business model as eggshell really make people believe it?
2. Qingke apartment
Qingke apartment, which landed earlier than eggshell, was established in Shanghai in 2012. It received the first investment worth US $10 million in 2014 and landed on NASDAQ in November 2019.
As of June 30, 2019, Qingke apartment has disclosed the supply of 97621 rooms. In terms of the value and quantity of total rental rooms, Qingke apartment is the third largest long-term rental apartment operator in China, second only to free and eggshell.
According to the prospectus, as of June 30, 2019, the total assets of Qingke apartment were 2.035 billion yuan, and the total liabilities were 2.703 billion yuan, which was “insolvent”. As of September 30, 2019, 65.40% of Qingke’s rent is paid by rent loan, and 16.50% of its tenants are applying for rent loan. The shortage of funds makes it over dependent on “rental loans”.
In February after the outbreak, the “green guests” who returned home found that their rented houses were facing the situation of water and power cut off and even about to be driven out of the house because of the platform’s default on the landlord’s rent.
The employees who left the company said that Qingke not only defaulted on the landlord’s rent, but also failed to issue the employee’s allowance and salary.
After being exposed to the crisis of capital chain fracture, Qingke’s share price has also dropped from its peak of 20.438 US dollars per share to 4.38 US dollars per share, a drop of 76.95% and a sharp decrease in market value.
Stock price trend
Jianrong Jiayuan, a long-term rental apartment business platform of China Construction Bank, has gradually taken over 5000 houses of Qingke apartment in Hangzhou, giving young customers a chance to breathe.
Now, after the capital chain crisis, Qingke has started a new round of financing and acquisition.
3. To live together
Founded in September 2015, Xiangyu is a brand of housing asset management business under my family. Compared with the long-term rental apartment platform of the entrepreneurship Department relying only on financing and blood transfusion, Xiangyu has a natural capital advantage.
According to the financial report of I love my family, in the first half of 2020, the scale of houses under management in China was 253000 units, with a revenue of 7317 million yuan, a year-on-year decrease of 15.05%; the average rental rate reached 94%, from the perspective of management scale, the current scale of Apartments is only one fourth of its natural size.
Even if there are listed companies as blood transfusion channels, they can’t hold the burning mode of long-term rental apartments, and rent loan has become a “special medicine”.
In 2018, it was revealed that employees recommended that tenants give priority to the “credit free deposit free” rental mode, which is what we now call “rent loan”. In the days after the explosion of eggshell thunder, there are still people seeking help on the Internet, “how to do with the rent loan when renting a house in Xiangyu?”
In the past two years, I love my family. In the past two years, I have also consciously reduced the scale of the apartment. In the financial report, in response to the impact of the epidemic, the company has taken the initiative to shrink the non-performing inventory and eliminate the housing resources under management whose rent prices deviate greatly from the market level.
4. Youke Yijia
Youke Yijia was established in February 2012, and launched its first full rental apartment in Chengdu. In November of the same year, it obtained 3 million yuan of angel round financing, in November 2014, it obtained 22 million US dollars of round B financing, and in October 2016, it obtained hundreds of millions of yuan of venture capital loan from Huarui bank. In 2018, it has managed nearly 40000 houses in Chengdu, Wuhan, Beijing and Hangzhou.
Youke Yijia claims to create the most fashionable co renting community for tenants and leave the best memories of renting houses. However, the full screen of “Youke Yijia renting house” on the search engine is full of “what should I do if I am loaned?” “Unknowingly signed a housing loan, how to do” worry.
Instead of looking at the contract carelessly, Youke, who was originally used to warm the young people, let them fall into a big hole when they first came out of society.
In 2018, the peers are still on the road of crazy expansion. Youke Yijia has begun to reduce the size of its houses and reduce its dependence on rent loans. In order to have enough cash flow, it has transferred the loss making companies in Beijing, Wuhan and Hangzhou. In early 2019, Youke Yijia completely stopped the rent loan, leaving only Chengdu as a base.
On December 3, Liu Xiang, CEO of youkeyijia, issued an appeal on the theme of “sharing the pain of the industry” on the official micro blog, saying that seven days of emergency living room can be provided free of charge for tenants who have no place to go due to eggshell problems in Chengdu.
5. Beautiful house
Beautiful house, founded in July 2015, completed the B round of $30 million in 2016. It won several long rental apartments in 2017 and became one of the first apartment companies to cooperate with Alipay sesame.
It is committed to creating a beautiful house for young people to live an ideal rental life. In 2017, the housing scale has reached 50000. As of August 2018, 18 major cities such as Beijing, Hangzhou and Chengdu have been opened, with assets under management of more than 45 billion yuan.
But beautiful houses are not “beautiful.”.
In 2020, many tenants of beautiful houses will vomit themselves into “rental loans” under the guidance of the staff.
The tenant does not know that the third party repayment official account is the loan company. After check-out, the bank’s money will be transferred away, and overdue will affect the credit reporting. Rogue behavior makes them very angry, the platform and loan company play ball style answer can not solve the real problem.
6. Bad business
With the gorgeous coat of the Internet plus rent + finance business, long rental apartments plan to tell a perfect story to the capital market: as long as they occupy most of the market, they can have the right to price, raise rents and earn high profits. Rapid expansion needs funds to support the bottom, thus the birth of rent loans.
In order to put an end to the chaos in the long-term rental apartment industry, in December 2019, the Ministry of housing and urban rural development, the banking and Insurance Regulatory Commission and other six departments jointly issued the opinions on rectifying and regulating the order of the housing rental market, requiring that the amount of housing rent loan for the long-term rental apartment platform should not exceed 30% of the housing rental income, and the tenants should not be induced to sign a rental loan.
However, such as free, eggshell, Xiangyu and other long-term rental apartment platforms are unable to refuse the temptation of “rent loan” due to financial problems.
Shell Research Institute has estimated that the scale of China’s housing rental market can reach 3 trillion. But this “good business” with a broad market has been ruined by ambitious people after all.
(statement: This article only represents the author’s point of view, not Sina’s position.)