Demystifying another truth about long-term rental apartments: some people enter just to run away

“When running off has become synonymous with an industry, it shows that this industry has the potential to emerge as world-class companies.” This unique and optimistic “famous quote” comes from the person in charge of a running long-term rental apartment. But words like running away and exploding thunder can no longer stimulate Mr. Wan’s nerves. After reporting the case to the Economic Investigation Brigade of the Public Security Bureau of Futian District, Shenzhen, he has no emotion.

“Routine hand in information, so plain that I don’t remember it happened.” At the scene, the case-handling personnel were not surprised. When they heard that they were renting an apartment for a long time, they handed over a list of submitted materials and asked him to directly submit the materials to go home and other news.

These days, in Shenzhen, Shanghai, Chongqing, Changsha and other cities, tenants, landlords, and employees like Mr. Wan who run between public security bureaus, housing construction bureaus, street offices and other agencies are already a huge group.

These people are linked together by long-term receipts and short-payments (that is, the period of collecting rent from the tenant is longer than the period of paying the rent to the owner of the house), high income and low rent (that is, the rent paid to the owner of the house is higher than the rent collected from the tenant) Leju (Shenzhen) Apartment Management Co., Ltd. (hereinafter referred to as Leju Apartment) that has accumulated funds and is suspected of running away.

According to employees of Leju Apartment, the actual controller of the group is now in Zhengzhou, and some employees rushed to Zhengzhou from Shenzhen to talk to the actual controller face-to-face, but they got the sentence “I will keep you from getting out of Zhengzhou.” The latter did not take the initiative and did not respond, and threw out the phrase “I don’t want Shenzhen, the big deal.”

Photo by reporter Zhen Sujing

“Domineering” sudden unilateral termination

With one lease, the work and life of the three parties were completely disrupted.

On August 24 this year, Mr. Wan signed a house lease contract with Leju Apartment, renting a three-bedroom apartment in Xihaiwan Garden in Nanshan District for a one-year lease. The contract last month’s rent was 10,300 yuan, which was the same as the market rent. Mr. Wan chose to pay the rent annually under the salesman’s promotion. He reduced the rent for three months and paid nine in one deposit. A total of 103,000 yuan was paid. The actual monthly rent was about 7,725 yuan, which was about 2,000 yuan lower than the market rent. According to the contract, it was August. We formally moved in on the 31st and everything was normal for a month after moving in.

During the National Day, Mr. Wan suddenly received an unfamiliar text message stating that the house he lived in was entrusted by the Leju Apartment, and the other party acted as a third party to deal with the termination of the house contract.

The reason for the termination of the contract is that Leju Apartment has stopped paying the rent to the owner due to the problem of capital turnover, and has proposed to the owner of the house to terminate the contract. The owner will take back the house by himself later, please know!

The reporter learned in the interview that the solution provided by the third-party agent is very domineering and there is no room for negotiation.

Option 1: The rent and deposit of the house you live in will be returned to you in installments, and you will withdraw the rent and terminate the lease contract. The installment plan is 6 installments below 10,000, 18 installments with 10,000-20000, 24 installments with 20,000-30000, and 36 installments above 30,000. If you agree, please call back!

Option 2: If you do not agree to the installment plan, please take effective measures to deal with it by yourself. Our company will no longer accept any matters concerning your rental housing, please know!

“Such a large amount is refunded in installments, who knows if it can be returned.” Regarding the instalment refund and operational uncertainty, Mr. Wan and other tenants said that they could not accept such a plan. They did not believe that there were two offices in Shanghai and Shenzhen. No third party has such financial strength and believes that Leju has resorted to fixed routines to prevaricate them.

Demystifying another truth about long-term rental apartments: some people enter just to run away 1

Like Mr. Wan, there are not a few tenants who have received unilateral “domineering” termination of Leju Apartment. As of October 17, in Shenzhen alone, according to incomplete statistics, there were 566 tenants, involving more than 32.46 million yuan in funds.

A management of Leju Apartment told the “Daily Economic News” reporter that this is only a part of it. In September, the number of houses operated by Leju Apartment was around 1,000.

“Big deal Shenzhen (the market) is no longer”

High income, low rent, long income and short payment are the “magic weapons” for the rapid expansion of many long-term rental apartments. Now in addition to repossession of houses, this has also become the fuse for the relationship between landlords and tenants to drop to a freezing point. The landlord accused the tenant of being greedy for cheap, and the tenant believed that the landlord rented out the house to Leju Apartment at a high price, and they scammed together. The solution has never been consistent.

Photo courtesy of respondents

Mr. Zhang is the landlord of Leju Apartment. In the first half of the year, he had to go abroad due to job changes, so he entrusted the house to Leju Apartment. In May of this year, Mr. Zhang signed a house management service contract with Leju Apartment. The lease term is 2 years and the rent is paid monthly at 3,500 yuan per month. Leju Apartment was rented to tenants at a price difference of RMB 2580/month, but one year’s rent was charged at once.

Mr. Zhang has not received the rent since September, but the tenant is still living. Mr. Zhang said that he was in line with everyone’s demands, “Get the people (from Leju Apartment) up and get the money back, otherwise I will definitely get the house back.”

Photo by reporter Zhen Sujing

In fact, some of the landlords of Leju Apartments who were unable to collect rent earlier have already had fierce conflicts with tenants in order to stop losses in time. Some tenants showed reporters photos of their fierce arguments with the landlord and the forced water suspension and evicting.

Regarding the conflicts between owners and tenants and the properties passively involved in them, the staff of Shenzhen Municipal Housing and Urban-rural Construction Bureau stated in an interview that if there is a lease dispute, the property service company should take the initiative to understand the specific situation of the dispute, and try to do the best Disputes between tenants are coordinated and reported to the community and neighborhood office.

At the same time, some tenants and landlords, who were both victims, were supposed to have unanimous external relations. However, because of the immediate rent issue, they “breaked”. The operator caught the victim’s mentality of “no consumption”, and the matter would not stop. Over.

Some tenants and landlords said that the cost of rights protection is too high, and if you have time to toss, it is better to earn the money back, and choose to compromise and share the loss. Similarly, the employees of Leju Apartment also chose to give up asking for salary for the same reason. The above-mentioned management interviewed told reporters that some of his colleagues had “not consumed anymore and left the group.” Another salesman surnamed Wang told reporters that Leju Apartment will not pay wages in August. Later, he only issued a notice asking employees to cooperate in the transformation, and owed him more than 10,000 yuan.

“What can I do?” he asked back.

According to Qixinbao, the controlling shareholder of Leju Apartment is Sichuan Youjuhaofang, and Wang is one of the actual controllers. However, after a series of incidents broke out recently, Wang and others did not even refute the rumors or make symbolic responses.

Demystifying another truth about long-term rental apartments: some people enter just to run away 2

The “Daily Economic News” reporter learned from the core people close to Wang that the core cadres including Wang attended internal meetings and did not come up with specific solutions when responding to problems in cities such as Shenzhen. Said “Shenzhen is a big deal.”

And just when they returned to their residence after the meeting, they received a threatening call from another actual controller saying, “I will keep you from getting out of Zhengzhou.”

Affiliated companies have the same routine to cut leeks

During the investigation, the reporter found that not only the Leju Apartment in Shenzhen, but also the related Chongqing Zhiyu and Shanghai Qingchao, have experienced capital chain problems, involving more than 1,000 owners, tenants, and employees.

In Shanghai, the tenant Zuoyi rented a house in Qingchao Apartment with one deposit and three payment. According to his knowledge, most people initially chose this payment method, but in the later period, many salesmen encouraged the tenant to pay half a year. annual fee. Zuo Yi calculated that Qingchao had to return his deposit and rent totaling 10,650 yuan. According to the cancellation announcement, the return plan was for 6 periods within 10,000, 18 periods from 10,000 to 20, and 36 periods above 30,000. Under optimistic circumstances, he monthly Can get back about 600 yuan.

Zuo Yi reluctantly said that compared to the more than 10,000 yuan paid at a time, 600 yuan is particularly ironic. Why use our money for so long? According to his introduction, in Shanghai, the largest amount of rent he knows is 85,000 yuan. At present, the office in Qingchao Shanghai is empty, the salesperson has been disbanded, and the tenant and the landlord can only contact and terminate the contract by phone.

In Chongqing, a landlord who entrusted the house to Zhiyu said that Zhiyu no longer paid them rent in September, and the relevant persons in charge could not be contacted, and it was suspected that the money was fled. After the accident, they learned that Zhiyu’s expansion model in Chongqing is also high-income and low-rent, long-term income and short-term payment. At present, the company has not continued normal operations. Now landlords and tenants have spontaneously set up group chat groups, running around various departments hoping to recover the rent and take back the house.

The reporter learned that the apartment business capital chain of Friends Juhaofang in Changsha, Suzhou, Hefei and other places is also in trouble.

Some tenants reported that the rent had not been paid 14 days after their application to withdraw the rent, and some tenants received a notice from the landlord asking them to move out. In the company’s message area, the most discussed topics between landlords and tenants are related companies running away and rent arrears.

Judging from the information provided by the interviewees, the operation of Youjuhaofang in Chongqing, Shanghai and other places is almost the same formula and the same taste as Shenzhen. Two days before the National Day, a notice of transformation was issued in the name of the group. After paying employees’ wages and the owner’s rent, they ran away during the National Day holiday. When people realized the problem after the holiday, the apartment was empty, and the “flash” didn’t even give a face-to-face discussion of the solution.

According to a report provided by Zuo Yi to reporters, Qingchao signed a batch of apartments on August 5. After quickly collecting a batch of annual and half-year tenant payments, it stopped paying employees’ wages and rent in September. This makes the outside world believe that Leju, Qingchao, Zhiyu, etc., dressed in the cloak of “bad business and eager to expand”, are eagerly cutting leeks, intending to collect annual rent.

Demystifying another truth about long-term rental apartments: some people enter just to run away 3

The lawyer of Shangzheng Hengtai Law Firm stated that the essence of long-term rent and short-term payment, high income and low rent is hoarding funds for other purposes or simply fraud. When renting a house, tenants must abandon their greed for cheap. The era of long-term rental companies burning money to grab houses is long gone. If the long-term rental company requires a lump-sum payment of long-term rent, the tenant must request the landlord’s explicit approval to confirm whether the landlord also collects such long-term rent at one time, so as to prevent the long-term rental apartment company from suddenly running away.

Photo courtesy of respondents

Long-term rental apartments also have “full training on cutting leek”

Earlier, some insiders analyzed the operating model of long-term rental apartments, using pre-collected rents from tenants to snowball, rapidly expanding and occupying the market share, in order to make a beautiful project book to get VC money, and then go to Nasdaq. Ring the bell. The actual controller wants to manage well and wants to ring the bell on Nasdaq. He is already an ideal and conscientious entrepreneur.

I’m afraid that impatient entrepreneurs don’t want to ring the bell. They just want to use the same routine to set up a company first. With a business model of high income and low rent and long income and short payment, they recruit sales staff with high salaries and quickly accumulate a large number of housing and After the tenant, he collected the rent for half a year, and then applied for bankruptcy or deregistration of the company on the grounds of poor management, and retired. This approach has low threshold, concealed means, and easy copying of the model, which is very common in the industry.

Shenzhen’s recently concentrated rights protections, such as Mercure Apartments, Kitty Eagle Apartments, and Chengcheng Apartment, all show the same characteristics. They have a short establishment time, adopt a high-income low-rent operation model, and are accompanied by recruitment gimmicks with high salaries, high commissions and no educational threshold. , After rapidly expanding scale and accumulating funds, publicly announced the difficulties of the capital chain.

For example, at the Mercure Apartment, the reporter noticed that the basic salary of the housekeeper given in its recruitment notice is 6000 yuan + single amount reward (1000 yuan / 1500 yuan / 2000 yuan / single) + 50%-85% self-employed bonus + cash from the house Award + rent high cash back, and the supervisor’s comprehensive salary can reach 20,000 to 50,000 yuan per month, which is much higher than the industry average, which greatly improves the efficiency of its rapid accumulation of housing and customer acquisition of funds.

A senior lawyer who did not want to be named disclosed to the “Daily Economic News” reporter that there is indeed a full set of training for cutting leek in long-term rental apartments to avoid risks in the industry, and the admission and thunderstorms were completed in a very short time.

Take Youjuhaofang as an example. On the one hand, they closed down the city business they had developed earlier on the grounds of the impact of the epidemic, while on the other hand they reopened their territory in second-tier cities. According to Qixinbao, Youjuhaofang was established in October last year, and many of its companies were established after the outbreak of the epidemic.

Demystifying another truth about long-term rental apartments: some people enter just to run away 4

The above-mentioned person close to Wang told reporters that after the business in Shenzhen and Shanghai exploded, the actual control team recently established a new shell company.

Recently, the companies involved in such as Kitty Eagle Apartments and Chengcheng Real Estate Searching, which have also been defended by Sancaijia, have also expressed their “unique and optimistic” views on this-“When running away has become synonymous with an industry, It shows that this industry has the potential to emerge world-class companies.”

Does the “big deal Shenzhen don’t want it” action to abandon the city can cause the actual controller to retreat?

Du Jianjun, a lawyer from Jinglin Law Firm, said in an interview with the “Daily Business News” reporter that if a company operating a long-term rental apartment adopts a method of high income and low rent when signing the contract, it is impossible for the company to obtain income. If it is profitable, it is impossible to continue to operate because the company does not have the ability to perform the contract from the beginning, and it can be presumed that it has the subjective purpose of illegal possession.

This mode of behavior conforms to the provisions of my country’s criminal law, knowing that they are unable to perform the contract, fabricating facts, concealing the truth, or using other deceptive means to make the other party pay or pay, which is a contract fraud and shall bear legal responsibility.

After a long-term rental apartment explodes, who should bear the loss of the landlord and tenant?

Zhou Zhengfeng, a lawyer at Huashang Law Firm, believes that if the owner and the long-term rental apartment are in a trusteeship relationship, the loss shall be borne by the owner; if it is not, the tenant shall be borne. If it can be proved that the long-term rental apartment is only an agent, then the runaway dispute is an agency contract dispute, not a lease contract dispute. The landlord must pay for the careless act of looking for an agent. The lease relationship remains unchanged and the tenant continues to rent the house.

The government’s new regulations point to the gate of capital supervision

In recent years, as the boom has subsided, the number of long-term rental apartment closures has increased year by year. According to incomplete statistics, the number of long-term rental apartments that have exploded with mines this year has exceeded 40.

Hu Jinghui, chief economist at Jinghui Think Tank, previously pointed out that in some long-term rental apartment rental disputes in Beijing, he pointed out that in some financial calculation models for long-term rental apartments, the default is that Beijing’s annual rent will rise by about 10%, but the epidemic has caused A large number of rooms are vacant, and rents have not seen a strong upward momentum. Long-term rental apartments are all refurbished and assembled, and the cost is relatively high. This has caused many companies to face cash flow pressure.

In fact, group incidents caused by renting houses have aroused great attention from the supervisory authorities. For example, Chengdu has issued the “Notice on Carrying out the Supervision of Housing Leasing Funds”, which requires the establishment of a supervisory account. If the rent payment period of the lessee to the housing leasing company exceeds 3 months, the housing leasing company shall collect the rent, deposit and use rent. The funds obtained from the loan are deposited in a supervisory account. If a supervisory account is not opened, the relevant housing leasing company will be suspended from signing the lease contract online for filing and publishing houses.

Liu Xiang, CEO of Chengdu Youkeyijia, said in an interview with “Daily Economic News” that the core of housing leasing fund supervision is to remove excessive leverage. If some companies continue to use excessively long-period advance receipts and leverage in large quantities, capital supervision will have a great impact on the company’s short-term cash flow.

Regarding improving the business environment of long-term rental apartments, Li Yujia, the chief researcher of housing policy in Guangdong Province, said that it is necessary to explore the establishment of a rent custody system, set up special institutional rent accounts to collect and pay rent, and implement rental bank custody; dynamic reporting and monitoring of cooperation in long-term rental apartment rental loans Rent loans can only be used for strategic investment such as pre-renovation and marketing, and cannot be used for housing expansion. In addition, the regulatory authorities should clarify the rules for rent loan access, and banks should develop inclusive rent loan products for tenant financing.

Du Jianjun said that the long-term rental company contract fraud can go through criminal proceedings, which is more conducive to recovering the victim’s loss. After the case is filed, the public security organ recovers part of the economic losses through the recovery procedure, especially the transferred stolen money, which is conducive to recovering the loss of the victim. On the other hand, it can allow criminals to receive due punishment and maintain social fairness and justice.

Zuo Yi saw that in the letter from Youju Group to the landlord, “I also hope that the majority of landlords and tenants can help the company at this moment and help our young people (overcome) the difficulties encountered during their entrepreneurship.” . But she wondered why such a pot with impure motives and pretending to be “failure to start a business” should be carried by disadvantaged groups like them.

Demystifying another truth about long-term rental apartments: some people enter just to run away 5

On the eve of press time, the reporter of “Daily Business News” once again visited the office address of Leju Apartment in Nanshan District. Now the door is closed. The landlord posted a notice of the termination agreement with Leju Apartment at the door. The company plaque has been removed. There were only 6 black holes left on the wall, and the indoor tables and chairs were covered with dust. If it weren’t for the two self-adhesive stickers with “Leju Apartment” scattered on the ground, the company’s mark would hardly be visible, but the thick report receipt form kept by the public security organs proved that it did exist.

Photo by reporter Zhen Sujing

Reporter’s Note|Strengthen supervision and return entrepreneurship to the essence of entrepreneurship

Unlike the high-light surrounds when it first appeared as a new format, long-term rental apartments have recently been frequently searched for because of wages, running away and thunder. According to statistics from the Shell Research Institute, 53 parents’ rental apartments closed down last year, and more than 40 long-term rental apartments closed down this year. The laws, risks, and frauds of the rental market have once again become the new focus of heated discussions in the industry.

Investigate the causes of thunderstorms in long-term rental apartments. Intense competition and broken capital chains accounted for more than half. However, the trillion-scale leasing market has not yet cultivated the imagination of unicorns, giving true and false entrepreneurs the motivation to enter the market and gamble. True entrepreneurs work hard and survive in the cracks, while fake entrepreneurs are showing off their wealth while “abandoning the city” to rebuild scale.

The apartments that have recently burst into thunder and run off the road all show common characteristics, using industry regulatory gaps, in a very short period of time, with high income and low rent, long income and short payment, high salary and high commission, and rapid development on a large scale. After gathering huge amounts of funds, they will be announced. There is a problem with the capital chain, or transformation or termination; after that, the conflict between the owner and the tenant is used to divert the attention of the apartment operator, and it is determined that people have a mentality of “don’t want to consume”, thinking that there will be no mass incidents, and finally no more It.

Fake entrepreneurs earn money in the name of starting a business, but they have to be paid by the market. This kind of business model with hidden traps continues to trample on the bottom line of the industry, reducing the trust of the industry to a freezing point.

Standardize the way forward, the road is obstructive and long.