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Top 10 hot issues concerning consumer protection in China 2020

By Zhu Bochen
0 Comment(s)Print E-mail China.org.cn, February 7, 2021
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5. Runaway rental housing agencies

Photo taken on Nov. 24, 2020 in Shanghai shows the poster of Danke Apartment, one of the runaway rental housing agencies. [Photo/VCG]

Social influence index: 97.9

The past year has witnessed the sudden bankruptcy of many rental housing agencies across China. Companies such as Danke Apartment have collected often a year's rentals from tenants in advance, although paying apartment owners on a monthly-basis. Their business model indicates that the surplus has been continuously used to rent out more apartments in the market at much higher rates, until their capital chain breaks and companies suddenly collapse, leaving only tenants and apartment owners quarrelling with each other.

While criticizing the runaway activities of such rental housing agencies, consumers believe relevant government bodies should act and establish supervision mechanisms for the long-term rental housing sector. Many urged that more regulatory efforts should be in place covering online financial institutions' participation in rental housing, effectively reducing the leverage ratio of rental housing market, in a bid to protect the lawful rights of both tenants and apartment owners.

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