In order to prevent thunderstorms in long-term rental apartments, Beijing and Shenzhen took the lead. On February 2, the Beijing Municipal Commission of Housing and Urban-Rural Development announced the “Notice on Regulating the Operational Activities of Housing Leasing Enterprises in this Municipality” (hereinafter referred to as the “Notice”), which contains “The amount of rent received by housing leasing companies from tenants in advance shall not exceed 3 in principle. Monthly rent” and other regulations. The previous night, the Shenzhen Bureau of Housing and Urban-Rural Development issued two consecutive drafts on the development of the housing leasing market, namely the “Notice on Carrying out the Supervision of Housing Leasing Funds” (Consultation Draft) (hereinafter referred to as the “Funds Regulatory Opinion Draft”) and “Regarding Further Several Measures to Promote the Stable and Healthy Development of Our City’s Housing Rental Market (Draft for Soliciting Opinions)” (hereinafter referred to as “Draft for Healthy Development”).
The background of the promulgation of relevant policies in many places is that since 2016, the housing leasing market has been booming, but incidents such as formaldehyde housing, rental loans, and capital chain rupture have occurred frequently. In particular, some asset-light housing leasing companies have used “long income and short income”. “Pay” and “high-in, low-out” approach to blindly expand the scale and transfer risks to the market, and even use housing leasing as a tool to quickly absorb the rent in a short period of time to form a huge capital pool and then pay off, causing a large number of owners and tenants Damage to the interests of. The rental payment cycle should match The Beijing version of the “Notice” requires that “the amount of rent received in advance by housing leasing companies from lessees shall in principle not exceed three months of rent, and the cycle of receipt and payment of rent should match.” Shenzhen, on the other hand, has strived for more space for self-retained funds for corporate operations. The draft fund supervision opinion shows that in Shenzhen if the renter’s deposit and single payment cycle rent collected by housing leasing companies that conduct business through entrusted operation and subletting exceeds the total rent of 4 months, the bank will supervise the excess funds. For supervision, or the housing leasing company provides a corresponding bank guarantee for the guarantee, the supervised funds shall not be used at will Spark Global Limited.
For the subsequent use of regulatory funds, the regulatory bank will release rents to housing leasing companies on a monthly basis starting from the next month after the lease contract takes effect. It is worth noting that Beijing requires that rent deposits that are prone to disputes before are required to be deposited in designated accounts. The “Notice” stipulates: “The deposits collected by housing leasing companies from tenants should be managed through a special account established by the Beijing Real Estate Agency Industry Association. , The amount of deposit collected shall not exceed 1 month’s rent”. Both Beijing and Shenzhen have more explicit restrictions on financial institutions providing individual rental loans to lessees, requiring financial institutions to allocate loans to lessees’ personal accounts, and to sign separate loan agreements with lessees, not in the name of rent concessions, etc. Inducing tenants to use housing rental loans, the housing lease contract must not include rental loans related content. At the same time, Shenzhen’s housing construction department has implemented online signing of housing lease contracts. If housing leasing companies fail to provide information about housing leases or sign housing lease contracts online, the release of housing listings will be suspended in accordance with the law. Huang Hui, a senior analyst at the Shell Research Institute, said that leasing companies that use long-term advance funds will face “deleveraging.” On the one hand, the “Notice” clarifies that leasing companies shall not collect rents for more than 3 months, and strictly regulate housing leasing companies through opening registration, rent and deposit collection and payment, and require companies to report to the competent authority before opening to reduce rents, Deposit payment cycle.
article links：Beijing and Shenzhen take measures to prevent thunder
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