According to the Beijing Housing Provident Fund Management Center, in order to implement the decisions and deployments of the Party Central Committee and the State Council, and accelerate the establishment of a housing system with multi-subject supply, multi-channel support, and simultaneous renting and purchasing, the Beijing Housing Provident Fund Management Center (hereinafter referred to as the “Provident Fund Center”) has recently issued the “Notice on Carrying out a Pilot Program for Direct Payment of Housing Provident Fund for Rent” (hereinafter referred to as the “Notice”).

The “Notice”, based on the actual situation of housing provident fund rental extraction business, innovatively introduces the business model of “direct payment of housing provident fund for rent” (hereinafter referred to as “direct rent payment”), further increasing support for housing provident fund contributors in renting houses, better meeting the people’s needs for a better living environment, and promoting the healthy development of the housing rental market.

The “Notice” states that the “direct rent payment” business refers to the extraction method where the Provident Fund Center, with the authorization and application of the contributor, directly transfers the extractable housing provident fund from the contributor’s provident fund account to the account of the pilot housing rental agency on a monthly basis 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 as needed. Housing rental agencies hoped to increase rent collection channels and ensure rent collection rates. After the policy is issued, the Provident Fund Center will directly pay the extractable housing provident fund of contributors to the housing rental agencies on a monthly basis, eliminating the need for contributors to pay rent in advance and effectively reducing their rental costs. Housing rental agencies can receive rent in a timely manner, reducing cash flow pressure and improving their overall market competitiveness.

It is reported that the “direct rent payment” business, by connecting with the housing rental agency platform, enables contributors to complete the processes of renting a house and extracting their provident fund with “one application, monthly payments, automatic transfer, and one-stop service”.