Rebirth: The Era of Hong Kong Tycoon

Chapter 109 [Faults in the Lease Department]

Lin Rongheng has a lot of work every day. Evergrande Real Estate and Modern Media need to work hard on the affairs of the two groups;
There is also Yonghui Company, a retail group that is waiting for food, and occasionally has to care about the preparations for the 'Fast Food' fast food.

However, Lin Rongheng still put most of his energy on Evergrande Real Estate.

In the first three months of 1971, Evergrande Real Estate made no big moves, but kept making small moves—mainly preparing for the start of construction on the site.

Lin Rongheng was in the office, looking through the lease agreement of Evergrande Real Estate.

The businesses of Evergrande Real Estate include: real estate sales, development plans, building rental and sales, blueprint design, building construction, old building reconstruction, property exchange, etc. Among them, building rental and sales account for a considerable part of the profit, because Evergrande Real Estate has 10 buildings that can be sold. The rental property has a total area of ​​about 72 square feet, and the annual rent can reach more than 2500 million Hong Kong dollars.

Soon, Lin Rongheng discovered some problems in the company's lease contract—buildings in the same location had huge differences in rent and occupancy rates, and the people who signed the contracts were also different.
Lin Rongheng grabbed the phone on his desk and asked the people in the office to call the Evergrande "Big Three" in the company to come to his office for a meeting.

After hanging up the phone, Lin Rongheng continued to browse. As for the real estate business, Lin Rongheng basically figured out the inside ways. It can be said that no one can fool himself.

The price of materials in the market, wages of workers, and each single item in the project. Lin Rongheng learned a lot during this year.

After a while, the three giants of Evergrande all came to Lin Rongheng's office, and they were suddenly called for a meeting. It must be that the bad thing might outweigh the good thing; therefore, the three of them first looked at Lin Rongheng's face, but they were disappointed. The face is normal.

After sitting down anxiously, Lin Rongheng said: "The lease department has not done a good job! It seems that you all focused your energy on the development site and ignored a project that accounts for a large proportion of the company's revenue."

Sure enough, the boss found out the problem, and the three of them thought at the same time.

Zhang Ruohuai immediately said: "Boss, I didn't pay attention to this part. The main reason is that I think the leasing business is signed according to the market price, and occasional differences are reasonable."

It's true, but it's a bit wrong!
Lin Rongheng said calmly: "Small business is afraid of food but not food, and big business is afraid of food but not food."

The three of them began to think after hearing the words. The boss's implication was: small businesses are afraid of losing money, not interest. After all, small businesses generate very little interest; Large, the cost and profit involved are large, and the interest of one out and one in is very important.

The lease department of Evergrande is in charge of a business involving an annual profit of 2100 million Hong Kong dollars, and there are no more than five Chinese-funded real estate companies in Hong Kong that can make an annual profit of 2100 million Hong Kong dollars.

If the three of them didn't pay enough attention to this kind of big business, may I ask if they have neglected their work, or they are a little arrogant.

Lin Rongheng saw that the three of them bowed their heads, and didn't intend to pursue anything. He continued, "I proposed five rules to the lease department. You need to pay attention to them afterwards."

The three immediately took out paper and pens and prepared to record.

The boss has always only focused on the general direction. If the boss catches it and fails to implement it well, he will call in the middle of the night to criticize and scold.

Of course, the boss's scolding was not moody scolding, but scolding to the point, and no one complained.

Lin Rongheng also took out the content he wrote just now, and said one by one:

"Article [-]: From today onwards, the Lease Department will require senior staff to discuss the details of the lease for any lease with a monthly rent of more than [-] yuan. The senior staff have better experience and knowledge, and are more flexible. There are disadvantages. Of course, in order to train middle and low-level employees, when senior employees go to negotiate leases, they can bring middle and low-level employees to achieve progress through practice.”

"Rule [-]: You must carefully choose who you rent, especially if you rent a building in the name of a company. You must check whether it is a straw sandal company."

"Article [-]: Colleagues who are responsible for renting the building must pay attention to the so-called tangible and intangible losses in the lease contract: the tenant owes rent or refuses to pay the rent, which is a tangible loss and the amount is limited; if the group signs a lease with the tenant Leases with too long term or too low rent will cause greater intangible losses.”

"You should pay attention to this point. The rent of high-quality office buildings in Central this year is around 2.5 Hong Kong dollars, and the rent may reach 3.5 Hong Kong dollars next year, and the rent in the year after will rise again to about 4.2 Hong Kong dollars; Rents go up, and if we lease for more than a year, that's a huge loss."

Hearing this, the Big Three could not wait to look through the contracts of the lease department to see if there were any leases with a lease term of more than one year; according to the boss's estimate, if there was such a contract, the loss would be too great.

And Lin Rongheng just saw the lease information, four or five companies have leased for more than a year, fortunately the area is not large, otherwise Lin Rongheng would really blame himself for not reminding these people.

In the final analysis, Lin Rongheng was mainly responsible.

Then, Lin Rongheng said: "Article [-]: We must try our best to attract some merchants with good reputation and reputation in the market, because they can cause a 'famous brand' effect, have publicity value, and are also helpful for the lease of the mall and the future business of the mall. .”

"Article [-]: Keep in close contact with our cooperative lawyers. If a tenant owes rent or fails to perform its obligations, try to ask the lawyer's office to help. The effect is more effective than the company's recovery. It can also save internal manpower and reduce unnecessary trouble."

"Finally, you draft these few rules and regulations, and let the people in the lease department study it!"

After the three left Lin Rongheng's office, they rushed straight to the lease department.

Their minds are filled with Lin Rongheng's words of "this year's rent is 2.5 Hong Kong dollars, next year's rent is 3.5 Hong Kong dollars, and the next year's rent is 4.2 Hong Kong dollars." will be reduced to a minimum.

Qin Feng, the manager of the lease department, looked at the three superiors and came to him at the same time. He also realized that the lease department might not have done a good job, and there might still be a big problem.

Zhang Ruohuai didn't wait for Qin Feng to react, and asked directly: "Manager Qin, how many companies have contracts with the lease department exceeding one year?"

Qin Feng replied immediately: "It should be five!"

The Big Three breathed a sigh of relief, this answer can be tolerated.

Zhang Ruohuai continued to ask: "Is the area large? Find out the contract and call the senior staff of the department in the office. Let's have a meeting!"

Qin Feng said quickly: "En! I'll do it right away!"

A done deal, the next step should be to realize the mistake immediately.

So, the meeting lasted for more than an hour, and finally the company's lease department affairs were settled.

(End of this chapter)