Study Of The Loss Of Property Management Zndustry

With the improvement of people's living standard and the deeply-going reform of housing system, the real property management, a newly-rising industry in China, has developed rapidly. As the provider of the property management, property management companies are the indispensable nucleus of the property management market, which have made indelible contribution to the development of the property management industry in China. The present running status of the companies, however, allows of no optimism, since the range of loss is very wide and almost covers the whole trade. Among them, the loss is particularly serious in the state-owned companies transformed from housing management department and the companies subordinated to the developer of the real estate. These two kinds of companies depend on a large amount of subsidies from the government and enterprises respectively to keep survival and development. Other market-oriented independent companies are also weak in earning profits and are going through hard ship now.Why do the companies fall into such a predicament? That is because there are variety obstructs in the companies' business operation. These obstructs affect the companies to earn normal profits and even make them to suffer loss. If these obstructs cannot be solved effectively, they will not only affect the survival and development of the companies themselves and this trade as a whole, but also the construction of the society and economy of our country. Therefore, how to analyze and solve these problems and enhance the companies' ability for earning profit has become a task with realistic significance.Following the research route "mechanism discussion—problem analysis—comparative analysis—countermeasures proposing, this paper will first make an analysis of the profit mechanism of the property management company and then probe into the companies' business operation, find out the obstructs and explain the causes of their formation from both the theory and practice aspect, both exterior and interior environment of the companies with using the principles of economics and management. On the basis of the advanced operation experience of the overseas property management companies and considering domestic situation, this paper, at last, will propose specific countermeasures to solve the obstacles, so as to provide helpful revelation and reference to the development of China's property management companies and this trade as well.