“Shanghai residents are now able to deposit their home in the bank.”
China Construction Bank launched a new housing property deposit business in Shanghai on Thursday, Knews reported. Property owners in Shanghai can now lease their home to a bank and receive a lump-sum long-term rental fee. After evaluating rental revenue based on the location, decoration and size of the home, the bank will offer a price. If both sides agree on the price, the bank will pay long-term rent to the owner and manage the home from 1 to 3 years. Some property owners expressed their concerns that the bank may make a profit from an annual increase of the lease and others worry that it will be inconvenient if they need to take back their home in an emergency.