Compared to developed countries such as the United States and Japan, institutional participation in China's long-term rental market is still insufficient, with institutional penetration well below 50. However, in the face of huge market potential and growth opportunities, domestic long-term leasing institutions have actively innovated and launched the "gain rent" business model. Compared with the traditional second-hand landlord model, the "enhanced rent" model has shown stronger vitality and effectively stimulated the vitality of all aspects of the long-term rental market. Through this model, Ziru not only provides tenants with more high-quality and stable leasing services, but also brings more value and benefits to landlords and other parties, and jointly creates a "better life" leasing ecology.
Judging from the performance of China's long-term rental market in recent years, it is not an easy thing for long-term rental institutions to survive for a long time. For example, according to relevant statistics, as of the end of 2019, as many as 69 apartment institutions have "left". And the head companies that survived are not doing well, such as Qingke, which went public in the United States in 2019 and declared bankruptcy at the beginning of 2022; Eggshell went public in the United States in 2020, but due to various thunderstorms due to financial problems, it was delisted in April 2021. It can be seen that the freedom to survive so far in the long-term rental market does have a different "real ability".
For example, most of the other institutions in the long-term rental market adopt the "second landlord" leasing model, which can help them quickly seize the market in the early stage of the development of the long-term rental industry, and strive to increase their market share by collecting houses and other methods. At the same time, this model has led to the continuous involution of the industry, which is really not a long-term solution. Perhaps it is in this context that Ziru launched the "gain rent" model in March 2021 based on its own development needs and insight into the market.
As for the difference between "second landlord" and "gain rent", Xiong Lin, chairman of Ziru, summed it up like this: the original "charter" is split into two things: decoration and rental. Freely provide decoration, the owner pays, promises the owner to guarantee the minimum income, and the rent floating profit is shared.
From this point of view, Ziru will have an upgrade in its role compared to other long-term rental agencies, and the work it does is not to take the house from the owner, package it and then rent it out; Instead, it has become a "partner" who manages assets with the owner, who pays for the renovation to make the house meet the needs of the market, and freely provides professional operation and management to increase the value of the house.
The "enhanced rent" model is not only an important business innovation in its development history, but also demonstrates its ambitions for the future. While stabilizing online services, Ziru actively deploys offline, and is committed to building diversified physical spaces such as home improvement (Z Life) life halls, community stores and Ziru *** in core cities. These measures have undoubtedly injected new vitality into the long-term development of Ziru, and we have full confidence that Ziru will continue to create more remarkable results and bring more innovation and surprises to the rental market.