Chinese Realtors Have a New Enemy

Chinese real estate agencies struggling with the slowing real estate market turned to rental properties as a new profit center. Now this move is coming under assault as a new app helps link up renters with landlords, causing realtors to slash their fees by 50%

O2O搅局租房市场 中介费打5折能否成为常态

APP housing estates love Kat, nearly three days more than 2600 sets of transactions.

Renting through an intermediary, to pay one month rent as commission to the intermediary, which is renting intermediary "old rules." But recently, with a with a "Internet thinking" descent into the intermediary, this lasted 10 years, "convention" is broken: only half of the traditional commission intermediary fees they charge that half the rent. It is understood that this agency under the impact of the traditional intermediary individual stores have begun to follow up "50% off", and more in speeding up the transition to electricity providers. Insiders said that under the stimulation of the Internet thinking, the traditional mode of operation of the real estate agent will face the possibility of being subversive.

Tenant "commission 50% off"

A few days ago, when Meng from the landlord to get the key, but also do not believe: "No set of magnetic and brokers, the commission is really only charge half the rent."

Guanghua Lu Xiaomeng work area before been Shifoying rent this month, the house is about to expire, the landlord own use, do not want to renew the. No way, Meng had to re looking for an apartment.

"I was online when looking for housing, very occasionally to see a company called 'Love me, love Kat House' intermediary companies say they rent by the commission five fold. One saw, I was very tempted, but also a little worried, afraid of being cheated The peripheral friend advised me to try it, not to withdraw. "

So, find love Meng Ji estate broker house so Qin Ying. "Because they do not worry, I also find through other intermediaries, my idea is, who gave me to find the right house, and who I would sign."

O2O break the traditional model of renting

Rental market in Beijing, openly shouted "commission 50% off", the love of housing estates or first guitar, in addition, the company also has a unique feature is that there is no "store." This "high discount" and "no shop" model was released, immediately aroused strong concern within the industry.

Reporters learned that love Kat housing estates is a new company that has just appeared in Beijing, but also an "outsider." When the reporter linked to the house of love, co-founder Deng Wei Ji house, she admitted: "Before we do IT, and did not make rental housing."

Prior to the formation of the house of love Kat House, Tang Wei and partners invested in Shanghai had a similar "Didi taxi," the company "Hornet taxi", was very successful, so, in July this year, they put this model grafted onto Realtor industry in Shanghai launched the "love house Kat House" rent system: through self-development of a full O2O network intermediary services, renters on the Internet or mobile APP appointment showings, the company arranged a special agent under one of the city line with Look, after the transaction, the commission received only 35 percent of traditional landlord charges and commission-free for tenants. In October, they fought in the Beijing market, the commission 5 fold. More than one month's time, quickly set up eight offices points, recruited 200 brokers. "We only rental, because it is through the online booking, so no stores, rental stores can save money down the back to the customer, improving agent treatment." Love estate broker salary Kat House is a traditional broker about 2 times.

50% off the commission could become a "new normal"

The company opened a new, discount promotions to attract customers Fuji magic. Love Kat house rental housing commission 5 fold, is temporary or long-term? For this problem, 邓薇明 indeed said, "half of the monthly rent," the charges love Kat house house next long-term implementation.

50% off the commission for the tenant, it is a great thing; but for peers, it has to face a dilemma: If the follow-up, it will lose a large part of income, or even because of the cost of stores and "make ends meet"; if no follow-up, will lose out in the competition. So, how will the traditional intermediary choose?

"From our understanding of the situation, some of the traditional intermediary stores have begun to discount, 50% off, 40% off there." Love House Xuzheng De Kat House Guomao area manager, said.

Yesterday afternoon, the reporter called a number of traditional intermediary brokers, saying almost exactly the same: You can apply for a commission discount to the company, but can not have 50% off so low, can only hit 9.8%.

Choose the traditional intermediary transformation strategy

"The first half, we saw a bit, fast drops, impact and other taxi Uber software brings to the taxi industry; now, love Kat house to house, and the Internet has entered the rental industry thinking just from the commission of view, in the short term. traditional intermediary fees down great difficulty, after all the high rental costs of stores, but in the long run, will be the trend. "An unnamed industry source said.

According to him, the intermediary market is calm on the surface, but in fact is already simmering: Not long ago, Beijing's largest chain of family mediation and China's largest real estate website SouFun stop cooperation, increase shop chain of home construction, the "chain of family line" change for the chain of home network; and began to study the traces found room under the mediation of the road. At the same time, I love my home network has quickly completed the revision upgrade traditional new homes, second homes and rental channels. As early as in May, Green House website officially launched, claiming that the ultimate goal is to go to mediation, let the buyers and sellers to complete the transaction on their own people; in October this year, Q Housing Network conference held O2O mode version 2.0, and launched " partnership broker "mode.

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