How do property companies make money?

There are two ways to collect property management fees, one is called "contract gratuity system" and the other is called "contract system". The contract responsibility system is that the property company collects a fixed property fee per square meter after formulating the property fee, and is responsible for its own profits and losses. The cost is saved. If there is a balance, it will go into your pocket. Generally, small companies charge in this way. Large companies often adopt the "tip system", that is, no matter how many owners refuse to pay the property fee, I will provide services according to the money collected after the price is set, and draw a certain percentage of profits from the money collected. This kind of profit is called "tipping", and the proportion of general tipping is about 5%~ 10%.

In addition, most property companies are overwhelmed now. Because the property is a labor-intensive enterprise, the labor cost accounts for at least 60%~70% of the total cost, and the per capita minimum wage is increasing year by year. Now property companies are basically losing money if they don't find ways to make money by themselves. Of course, as the end of the real estate industry chain, real estate companies will not let their property companies lose money, so most of them use the way of subsidizing property companies. Longhu, Vanke, etc. are all large subsidies, and there is something called "brand maintenance fee" (or a subsidy with a similar name), which is the annual subsidy for real estate. Therefore, the owners who bought these houses actually enjoyed a higher service standard than the property fee pricing, but there were also some shortcomings. Once the land development of the real estate company is completed, the property is recovered and the property company is no longer subsidized, the property company can only withdraw the quotation and change to a property company. At this time, either the price has risen a lot or the property standard has dropped a lot. Therefore, low property fees are often not a good thing.

At present, property companies have adopted many different ways to run their own businesses, such as cooperation with courier companies, balcony closure, geothermal heating (these two are unique projects in the north), housekeeping, second-hand housing transactions, etc ... At present, most property companies are using this free way to protect themselves.