A Study On Profit Model Of Long-Rent Apartments In China

With the continuous rise of housing price in China,the lack of payment ability becomes the key restriction for low and middle income group to solve the housing problem by purchasing.Against this background,the central and local governments in China have implemented the housing policy of both renting and purchasing,vigorously developed the housing rental market,and encouraged rental agencies represented by long-rented apartments to participate in the housing rental market.Compared with the traditional rental market,long-rent apartments have obvious advantages in development,because they have professional organization operation,stable leasing relationship,and can provide perfect service for tenants.Therefore,the study of the long rental apartment profit model has certain theoretical and practical significance for the long rent apartment industry stable and healthy growth.The operators of long-rented apartments can be divided into real estate developers,intermediaries,hotels and brand organizations.In the process of operation,these four types of long-rent apartments have formed a profit model in line with their own characteristics,but the profit dilemma also exists.It is difficult for real estate developers to make profits in a short term,which occupies a large amount of cash flow and has too many Layers of management.Intermediary apartments have problems such as safe decoration,capital turnover and Solidification of operational thinking.It is difficult to combine long and short rental apartments of hotel apartments,and the online operation ability is relatively weak.There are problems such as blind use of financial instruments,failure to reach economies of scale,and low brand premium in brand institutional apartments.Combined with the experience and practice of domestic and foreign advanced enterprises,this paper attempts to put forward targeted countermeasures:Real estate developers should incorporate the long-term rental apartment business into the overall strategic planning of the enterprise.With the help of REITs,organizational flat management is implemented to achieve effective asset management.Intermediary apartments are supposed to make reasonable use of financial tools and strictly control the decoration quality.Meanwhile,they can be transformed into information management platform for long-term rental apartments.Hotel apartments can be combined with long rent and short rent,online and offline operation,centralized and decentralized.On the one hand,brand institutional apartments can solve financing problems through asset securitization of supply chain;on the other hand,rent price should be controlled,profit should be emphasized and subdivided community apartments should be established.