Discounted property management fees for vacant properties, can property services explore a new path of "balancing quality and price"?
2025-03-25
Ms. Li, who lives in Lanzhou, Gansu Province, recently completed a 30% discount on property fees for a vacant house. She can save nearly a thousand yuan annually on her unused property. Since March, similar "money saving stories" have been unfolding in multiple residential areas in Lanzhou. At the beginning of this year, Lanzhou City further introduced relevant policies, clarifying that property fees for vacant houses are charged at a 30% discount, and some property companies in Lanzhou New Area have even reduced the discount to 50%. Experts say that this policy driven reduction in property fees has stirred up the balance of the game between homeowners and property management, and is also a subversion of traditional industry rules. Property companies need to shift from "extensive charging" to "service is king" and explore a new path of "quality price balance" in service. After four years of legislation, the criteria for determining "vacancy" are clearly defined in Lanzhou, and there is a legal basis for a "30% discount" on property fees. In 2021, with the approval of the 20th meeting of the Standing Committee of the 13th People's Congress of Gansu Province, the newly revised "Lanzhou Property Management Regulations" came into effect on March 1 of that year. It is explicitly stipulated that if the property is delivered but not actually occupied, the owner shall apply and charge a property fee of 70%. After the implementation of this regulation, disputes have arisen in some residential areas. Some property management companies believe that "some houses have been renovated after delivery, but it is impossible to judge whether they are occupied or not, and the property fee cannot be reduced." Some owners have proposed that "there are two houses under their name, and one of the houses has not been occupied after renovation, and water and electricity have not been used. Paying 100% of the property fee is indeed a loss." The "Implementation Measures for Property Service Fee Management in Lanzhou City", which will be implemented from December 1, 2023, further explains the "charge for vacant houses": "For houses that the owners or property users have not moved in or do not use after moving in, the owners or property users should submit a written application in advance. After registration and confirmation by the property service provider, the property service fee will be charged at 70% of the charging standard from the seventh month onwards. However, in the determination of" vacancy ", property management and owners often have their own opinions, and in some communities, there is a" dispute " Sometimes it also evolves into an argument. At the beginning of this year, the Lanzhou Housing and Urban Rural Development Bureau issued the "Detailed Rules for the Management of Property Service Fees", which emphasized the criteria for determining "vacancy": "Water, electricity, and gas must be used for six consecutive months without any decoration or rental of the house." "30% discount is not a 'one size fits all' policy." Hu Lihong, Deputy Director of the Lanzhou Property Service Guidance Center, said in a media interview that the property still needs to ensure basic services for vacant houses, such as regular inspections to prevent water pipe bursts and maintain public facilities in the community. Therefore, the 70% fee standard can not only reduce the burden on owners, but also maintain the basic operation of the property. Hu Lihong further explained that taking a 100 square meter vacant house in a residential area in Lanzhou as an example, the original property fee was 2.5 yuan/square meter/month, and the annual fee was reduced from 3000 yuan to 2100 yuan, saving 900 yuan enough to pay for the household's water and electricity bills for six months. The discount on vacant houses is forcing property transformation and upgrading, and Lanzhou is not exclusive to it. In February of this year, Changsha City in Hunan Province issued a notice that starting from March 1st, a tiered discount will be implemented for the payment of property fees for vacant houses that have completed the delivery procedures but have not been occupied or used. From the month after delivery, if the property remains vacant continuously until the 24th month, 70% of the fee will be charged; From the 25th month until the end of vacancy, pay 90%. At the same time, Zhenjiang City in Jiangsu Province also clarified that for residential properties that have been vacant for more than 6 consecutive months, after being notified in writing by the owners and confirmed by the property service enterprise, the property public service fee for the early stage of the vacancy period shall be paid at 70% of the prescribed standard. If the vacancy exceeds 24 months, it shall be determined through consultation between both parties. If no consultation or agreement is reached, 70% of the prescribed standard shall continue to be paid. According to statistics, more than 10 cities across the country have joined the ranks of offering discounts on vacant property fees, with the largest discount being in Lanzhou New Area, Gansu. For vacant residential properties that have not been occupied for more than 6 consecutive months, if the application is approved, the property fee will be charged at 50%. One major impact of the "discount on vacant houses" is the reduction of income for property management companies. In this situation, some property companies resort to "fancy survival" to alleviate business pressure. The person in charge of a property management company in Lanzhou New Area said that the 50% discount policy for vacant houses has reduced the company's annual revenue by 15%, "forcing us to demand efficiency from technology". The company has reduced labor costs by 10% by introducing intelligent inspection robots and compressing management levels. Some property companies have also changed their strategies, "exchanging service for reputation", to make homeowners feel that they are getting value for their money after paying. Although the property management fees of an old residential area in Qilihe District, Lanzhou have not been reduced, new convenient services have been added, the greening of the community has been improved, and the elevator advertising revenue is publicly announced every quarter to offset the shared expenses, resulting in a 30% increase in owner satisfaction. Some property companies also open community canteens. Ganjian Chengfu Group Lanzhou Company has taken the route of affordable, low profit, and high-quality through property and elderly care pilot projects. The property division of Lanzhou State owned Assets Supervision and Administration Group has established Sanyi Jianye Yimin Catering Management Co., Ltd., which leads the "Sanyi Community Canteen" in various property communities. The community canteen opened by Ruiling Property of Lanzhou New Area Urban Investment Group provides affordable meals for more than 40000 residents, effectively solving the problems of "difficult to eat" and "expensive to eat" for the elderly, students, and office workers. These community canteens are highly welcomed by homeowners and have also brought considerable income to property management companies. Experts say that behind the loosening of property fee prices lies a deep reshuffle in the property industry, shifting from "collecting money for services" to "generating revenue through services". Data shows that in 2023, the number of property management enterprises in China reached 375000, a significant increase of 59.8% compared to 2018. However, during the same period, the new construction area of real estate decreased for five consecutive years, resulting in an oversupply in the property market. The person in charge of a property management company in Lanzhou bluntly stated, "In the past, we relied on developers' 'blood transfusion' to survive and sublet a few shops to make money. Now we must rely on improving service quality to compete for the market and gain the trust of owners." The relevant person in charge of the Lanzhou Property Industry Association also said, "By improving service quality, expanding business areas, innovating service models, and extending service chains, property companies can achieve sustainable development." Some experts say that the loosening of property fees is an inevitable result of market laws. The contradictions of "quality price inversion" in the past, disputes between property management and owners, and concerns about the vicious cycle of "price reduction equals quality reduction" can all be resolved by establishing a new service quality evaluation system, so that property services can achieve a "balance between quality and price". The sentence is:. It is reported that Lanzhou City is studying the inclusion of property service quality in the credit evaluation system, by linking it with bidding qualifications, "to ensure that high-quality enterprises do not suffer losses, to eliminate the 'lying flat' faction that deceives homeowners, and to promote the healthy development of high-quality property enterprises". Experts point out that the discount on property fees for idle houses not only affects prices, but also subverts traditional industry rules. When business owners shift from "passive payment" to "voting with their feet", and when property management companies shift from "collecting money for services" to "generating revenue through services", this game will promote more transparent and standardized community governance. For Lanzhou, the answer to whether it can break the deadlock in the reduction of property fees may lie in the smiling evaluations of homeowners. (New Society)
Edit:Chen Jie Responsible editor:Li Ling
Source:Workers' Daily
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