After the crisis
Editor's note is not easy to live in Beijing. Tenancy market in 2018 ushered in booming growth, radical ease, in the formaldehyde incident began to slow down after the industry iconic event. Looking back at this "rampage", we can clearly see the market momentum brought about by macroeconomic policies, but more deeply, it is the influx of many housing companies and the use of financial leverage, which should arouse our vigilance.
First line survey
Formaldehyde incident after "speed down" industry catch-up crowd
Chaoyang District, Beijing Chaojia Headquarters Building on the fourth floor, is the headquarters of Beijing Free Asset Management Co., Ltd. office location. Almost every day since September, there have been "special visitors" - people from various environmental companies carrying all kinds of indoor air, especially formaldehyde treatment and solutions. The environmentalists are well aware that the company, which is regarded as the unicorn's main rental housing company, is now in trouble with formaldehyde.
In the face of these environmental protection companies and their governance programs, as the relevant responsible person told the "China Business News" reporter, the effectiveness of these programs, but also need to be measured experimentally. The person in charge also told reporters that before this round of formaldehyde storm, comfortable to the new room air testing is mainly to test the supplier's material and quality standards.
More than ten days after the formaldehyde gate incident, on September 11, the following plans were implemented before the announcement of the Instructions on Air Inspection and Control Work was made: from September 24, 2018, all the first rental housing sources must be available for more than 30 days after the acceptance of the allocation. By the authority of the air quality testing qualified two conditions can be rented on the shelves.
Prior to this formaldehyde storm, it was easy to achieve a financial expansion that similar enterprises could not reach. By cooperating with a third party licensed financial institution, the tenant can be granted loans for rent and repaid in installments. In this way, you can get a one-time rent for the whole year, and the rent paid to the landlord is generally quarterly. As a result, a pool of funds is formed, allowing the market to expand the supply of rental housing with more ammunition than other institutions. This is far from the end point. By issuing asset-backed securitization products that target these loan earnings rights and refinancing freely, the purpose is still to expand the rentable housing resources.
Free entrepreneurs have developed rapidly by deducing the traditional rental business into a set of time and money allocation games. According to the statutory documents consulted by our reporter, Freedom will issue a total of 2.5 billion yuan of asset securitization products by the end of 2018, while the information freely disclosed to investors shows that as of December 31, 2016, "rent installment micro-loan" balance has reached 900 million yuan. Relying on the "ammunition" brought about by this allocation of funds, the comfortable rental housing supply expanded rapidly from 350,000 at the end of 2016 to 700,000 in 2018, just two years later. This speed has staggering the industry.
However, this kind of financial operation mode has another side, that is, the high demand for business cycle, because the rental source is rented from the landlord, whether rental or vacant, free to pay rent to the landlord, which determines that the free source of housing must be in high speed turnover. The emergence of formaldehyde storm just hit the gate of the business model freely.
The promised solution to this problem is to "lease the premises only after the IAQ test is qualified", but subject to the quantity and capacity of IAQ monitoring agencies and the effectiveness of solving the problem, if this commitment is to be fulfilled, the cycle of leasing the premises freely will be considerable. Elongate. In this lengthened cycle, ease will have to continue paying rent to the landlord. The uncertain vacancy period will lead to uncertain cost growth, which will lower the efficiency of the pool, restrict the size of the pool, and then affect the expansion of the market size - slowing down, for the free entrepreneurs and them. For investors, it is clearly the last thing they want to see.
Just as the formaldehyde-panicked tenants worry about their own health, they are at ease. Once the "speed down" or even "stall", the fate of free will go? This is just as important a business issue before the entrepreneurial team as it is to solve the formaldehyde problem.
Formaldehyde "speed down"
At 12:00 p.m., the Freedom Brand Department was still in a tense meeting, and the comfort boards in the office buildings became a place for them to relax, unlike previous rent hikes and rental loans, the Formaldehyde Door was the key to the long-Rent apartment model.
On the evening of August 31, an article entitled "Ali P7 Employee died of leukemia and rented a house free of formaldehyde" was published, and it quickly spread on the Internet. The crisis caused by formaldehyde exceeding the standard quickly evolved into a spectacle of national formaldehyde testing. Freely told reporters that the company is now doing its utmost to solve the problem of formaldehyde over-standard, regardless of cost, this is a crisis is also a turning point.
After the outbreak of the formaldehyde storm, the announcement was issued freely, promising that from September 1, 2018, all the nine cities nationwide for the first time to rent housing, until CMA (China Metrological Certification) inspection qualified and then put on the shelves. In the future, all new sources of housing will be 100% qualified after the test and then on the shelves for rent, and in the free APP details page display the test qualified report.
A long-term rental apartment industry insiders told reporters that to ensure the health of the new housing source testing and then on-line this commitment, the cost increase is very large, no enterprise can bear the vacancy period, or even no large-scale enterprises dare to follow suit. This point, as CEO Xiong Lin is very clear in his mind, he simply cited an example, if a room a day 100 yuan cost, 80,000 a day is 8 million yuan cost, a month 240 million yuan.
On September 11, the company stepped down 20,603 flats in 9 cities on September 1 for the first time. When these more than 20,000 rooms can be rented on-line, according to the commitment, depends on the indoor air quality certification report issued speed. However, the huge demand for detection has made this time period uncertain.
Relevant responsible person told reporters that in the near future, high-tech environmental protection companies to find them every day, hoping that the treatment of formaldehyde will be fruitful, but how the effect still needs to be measured by experiments. At the same time, there are more than 100 CMA-qualified testing institutions on the market, docking half of them freely, but some of the testing institutions halfway out on the grounds of "demanded high capacity" or "do not want to bear the pressure of public opinion".
A set of data provided by the free side shows that at present, it is free to work with 62 CMA-certified air testing institutions in China, with the maximum daily production capacity of 1147 units. At the same time, air management is provided for tenants who have applied for air testing and are still waiting in line. At present, it has cooperated with 71 air management institutions to form the largest daily average production capacity of air conditioning 2211.
Freely speaking in the announcement, admitted that the current detection and management capacity is seriously insufficient. "At present, the gap between supply and demand of testing agencies is very serious, tenants are anxious, we are more anxious than they are, we can not detect the results of the house, the source of housing on-line may not be, how many air testing agencies can support us, how many orders we can complete, I hope that comfortable guests do not face with panic, patience will be the problem. It's the most important thing we're facing right now that we're out and waiting for solutions, and if there's a panic, it's going to be very difficult in terms of process and management. The responsible person further told reporters.
And according to the statistics, before the formaldehyde storm, the first rental sources in different cities vacant time is different, an average of 25 days. After the two rental housing is released from the country, it can be leased out within 15 days. This means that it only takes 25 days to collect and decorate the house from the owners. But some of the cases that reporters know show that in cities like Beijing, the rate of first and second leases is far below the national average of 25 days.
This has created a high-speed turnover of free business in a long time.
Beijing has operated the housing asset management market independently since May 2016. Beijing Free Capital Management currently has five major product lines: Free Friends, Free Rent, Free Apartment, Free Post and Free Residence, covering the long-term rental and short-term rental market, and providing a variety of living services such as cleaning, professional maintenance, moving and free and excellent products during the rental period.
In terms of housing expansion, Beijing's free capital management mainly obtains housing information from three aspects: firstly, obtaining housing information from Beijing Chain Real Estate Brokerage Co., Ltd. or other cooperative intermediaries; secondly, cooperating with residential property, expanding housing resources by business development team; and thirdly, relying on the continuous development of free brand. Promotion, individual owners take the initiative to report housing information freely in APP or free official website, and entrust to manage freely.
From 2011 to the end of 2007, it has been stationed in 9 cities, including Beijing, Shanghai, Shenzhen, Hangzhou, Nanjing, Guangzhou, Chengdu, Tianjin and Wuhan, and its short-rent products - free accommodation has covered 12 cities in China.
Relevant responsible person admitted to reporters, before the formaldehyde storm, comfortable for the new rental sources of indoor air quality control, mainly on the supplier's material and quality compliance with the standards. A number of comfortable tenants also told reporters that they had not seen comfortable aspects of indoor air quality monitoring reports when renting from the source. It is also because of this, will appear in the free formaldehyde storm, tenants spontaneously detect indoor air quality surge.
Reporters contacted a number of CMA qualified air quality testing institutions, the unified response is: "Because of ease of this matter, these days have been about full." On the one hand, it is more difficult for tenants to be comfortable: "Every day in the near future, our purchases have been frantically searching for two types of institutions, one for testing and the other for air quality control, hoping to put our housing supply on the market at a faster rate, if qualified." Xiong Lin said publicly that he clearly knew what speed meant for himself.
So what does speed mean for free?
A long-term rental apartment industry insider told reporters that in view of the "95% high rental rate" and "low gross profit", long-term rental apartment enterprises have to pass through the high turnover overburden costs, the entire process of vacancy is compressed as much as possible.
The free "quasi-financialization" mode of operation enlarges this dependence on high turnover --- a higher turnover rate, which means that more and more pools of funds can be formed faster and more quickly, so as to obtain more capital ammunition, continue to expand the scale, and bring more revenue, thereby further expanding the pool of funds, and then re-entering Row expansion, so reciprocating cycle.
The speed and manner of development over the past seven years, as it has been, precisely illustrates the essence of this model, and its starting point is that
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