The Case Analysis Of Eggshell Apartment’s "Rent Loan" Default

With the strengthening of the state’s regulation of the real estate market,the further promotion of the housing rental market by policies and the continuous improvement of consumers’ demand for high-quality housing,the long-term rental apartment industry has a huge space for development.However,it is difficult to make profits and the industry characteristics of long investment return cycle make it difficult for long-term rental apartment enterprises to raise funds,at this time,the "rent loan" model emerged.In the early stage of the development of this model,there are still many problems in the use of long-term rented apartments,leading to the capital chain fracture of a large number of long-term rented apartment enterprises in recent years,which leads to the default of "rent loan" and even bankruptcy of enterprises.This paper takes the eggshell apartment "rent loan" as the research object,through the use of literature research method,case study method and other research methods,under the guidance of information asymmetry theory,sequential financing theory,financial distress theory and other theories,First of all,the company situation of eggshell apartment,the use of "rent loan",the whole process of the event of default and the consequences of default are deeply elaborated and analyzed.Secondly,the paper uses z-Score model to measure and evaluate the default risk of "rent loan" of eggshell apartment,compares the results of model analysis with established facts,and analyzes the risk changes of enterprises.On this basis,the paper analyzes the causes of enterprise default events from multiple perspectives,and finds the following five points: First,eggshell apartment is highly dependent on short-term debt financing tool such as rent loan,which increases the pressure of the enterprise to repay principal and interest,thus causing a great negative impact on the solvency of the enterprise.Secondly,eggshell Apartment failed to combine the actual operation of the enterprise in the formulation of expansion strategy,which increased the debt pressure of the enterprise and foreshadowed the occurrence of default events in the future.Third,"rent loan" is a short-term source of capital,while the project invested by enterprises has a long payback period,which leads to the mismatch of capital term.If the market environment deteriorates,enterprises will encounter the crisis of capital chain rupture.Fourthly,eggshell apartment achieves its expansion goals by paying high prices and renting at low prices,so that it is in a state of low profits or even negative profits.Fifthly,through sensitivity analysis,it is found that changes in the rent premium and vacancy cost of eggshell apartments are the main reasons for changes in the embedded return rate.However,due to insufficient operation capacity of the enterprise,both the occupancy rate and the rent premium are in a low state.Finally,based on the analysis results of the paper,five enlightenments are obtained for the use of eggshell apartment rent loan and the problems arising from the company’s strategic decision-making: first,establish and improve the use mechanism of rent loan;Second,the speed of development should match the ability to withstand risks;Third,optimize the allocation of debt maturity;Fourth,long-term rental apartment enterprises should shift to refined operation;Fifth,rational use of financial innovation tools.By studying the default case of eggshell apartment rent loan,this paper provides some reference value for the development of other long-term rental apartment enterprises using rent loan,in order to alert enterprises to choose and use market investment and financing tools reasonably,so as to promote the steady development of long-term rental apartment market.