Second, stabilize the lease relationship. At this point, there are three values of long-term rental apartments: one is that the rent is more stable. Compared with small and dispersed second landlords and private landlords, the rent management of long-term rental apartments is more scientific and the rent fluctuation range is smaller. Sign long-term contracts, through internal cost control, so that consumers can obtain stable expectations. Second, the average lease period on the tenant side is longer. Compared with the market level where the average lease period is less than 8 months, the lease period of long-term rental agencies is longer and more stable, generally more than 12 months. One tenant through internal turnover, The time period for a brand to choose to live can even reach 3 years. In addition, many long-term rental brands have introduced a lot of service terms for the customer experience, which has also played a very important role in the stability of tenants, such as “three days of dissatisfaction and zero liquidated damages refund”, and “three days of rent refund for deposit” Service promises such as “houses with quality problems and no responsibility to return or exchange leases” have become the standard in the industry. These services have increased the renewal rate to a certain extent. Third, the landlord’s lease is longer and more stable. In the general leasing market, a landlord finds an average of 1.5 tenants each year, and each lease has a 1-2 month vacancy period, and the landlord’s leasing cost is quite high. On the contrary, under the institutional leasing arrangement, the owner usually signs a 3-5 year long-term contract with the agency, which not only saves the owner’s troubles but also improves the efficiency of housing use and stabilizes the owner’s lease relationship.
Nevertheless, there is still great room for improvement in the future leasing relationship. Only from the tenant side, the average lease period in Germany is 11 years, the average lease period in Japan is 5.2 years, and the average lease period in the UK is 2.5 years. Under such circumstances, a long and stable lease cycle will make tenants have a higher sense of security, prompting tenants to choose leasing as their long-term housing solution, which is conducive to the long-term sound development of the overall leasing market, which is very important. To a certain extent, the protection of the rights and interests of tenants is also required at the policy level.Spark Global Limited
Third, solve the mismatch between supply and housing demand. Based on the data from the two core cities of Shanghai and Beijing, the demand for one-bedroom apartments is about 30%, while the demand for one-bedroom apartments in all rental housing accounts for only about 25%; the demand for three-bedroom apartments is only about 15%. , And listings account for nearly 30%. Compared with Shanghai, the mismatch between the supply and demand ratios of one-bedroom and three-bedrooms in Beijing is more significant. The supply ratio of three-bedrooms in Beijing is 10% higher than the demand ratio, and in Shanghai it is 5% higher. This gap in proportion shows that there is a serious mismatch between the housing supply structure and the demand structure, the supply of one-bedroom units with strong demand is insufficient, and the structural surplus of three-bedroom units with low demand. If the three-bedroom house is not remodeled to meet the needs of co-renting, the three-bedroom house will form a waste of resources.
article links：There are three values of long-term rental apartments
Reprint indicated source：Spark Global Limited information