On January 20th, the Beijing Housing Provident Fund Management Center issued the “Notice on Carrying Out a Pilot Program for Direct Payment of Housing Provident Fund for Rent.” The notice, based on the actual situation of housing provident fund rental extraction business, innovatively introduces a “direct payment of housing provident fund for rent” business model, further increasing support for housing provident fund contributors who rent homes, better meeting the people’s needs for a better living environment, and promoting the healthy development of the housing rental market.

The “direct payment for rent” business refers to a method where the provident fund center, with the authorization and application of the contributor, monthly transfers the extractable housing provident fund directly from the contributor’s provident fund account to the account of the pilot housing rental agency to pay for rent.

Before the policy was issued, contributors had to pay rent first and then extract their housing provident fund, making it impossible to extract funds as needed. Housing rental agencies hoped to increase rent collection channels and ensure rent collection rates. After the policy was issued, the provident fund center directly pays the extractable housing provident fund to the housing rental agencies on a monthly basis, eliminating the need for contributors to pay rent upfront and effectively reducing their rental costs. Housing rental agencies can receive rent in a timely manner, alleviating cash flow pressure and enhancing their overall market competitiveness.

What are the highlights of the new business model after its introduction?

Overall, the “direct payment for rent” business, by connecting with the housing rental agency platform, enables contributors to rent homes and extract provident fund through a “one-time application, monthly payment, automatic transfer, and one-stop service.”

Specifically, the first highlight is the reduction of requirements, allowing “zero-material” applications. By connecting data with pilot housing rental agencies, the provident fund center automatically obtains housing rental information, enabling eligible contributors to apply without providing materials such as rent invoices and lease contracts.