On July 23rd, Shanghai KE Holdings' "Worry-Free Lease" service announced the full rollout of its "zero deposit, monthly payment" offering, concurrently introducing a service guarantee system with coverage of up to 300,000 yuan. This move signifies that institutionalized property management firms are altering rental industry service standards through a model of "credit replacing deposits, guarantees hedging risks." Tang Jun, Vice President of the Shanghai Real Estate Brokerage Industry Association and Secretary-General of its Rental Committee, pointed out that currently over 90% of rental properties in the market are supplied by individual landlords, with three major structural contradictions—"product mismatch, service mismatch, operational mismatch"—remaining unresolved for a long time. Meanwhile, the penetration rate of institutionalized long-term rental apartments in China is approximately 10%, far below the level in developed countries. This gap represents both an industry pain point and growth space for professional operators.
KE Holdings Inc. (BEKE) Shanghai Rental General Manager Xiao Zhenyu stated at the launch event, "With the upgrading of consumer demand, the core contradiction in the rental market is shifting from 'whether there is a place to live' to 'whether one can live well.' During the rental process, tenants fear issues going unaddressed, and landlords fear a lack of asset protection—disputes over repairs, difficulties with deposit refunds, opaque fees, and accidents with no one to handle them. These are the things that truly erode trust."
"Based on this genuine feedback, over the past four years of service, Shanghai KE's Worry-Free Lease has distilled ten core values for serving clients," Xiao Zhenyu said. "For landlords, from rental security to fee transparency, from guaranteed tenant placement to professional maintenance, the core is one thing—not having to worry about daily rental matters after entrusting the property. For tenants, from pre-occupancy inspections to stable tenancy, from the relief of monthly payments to concierge service, it is also one thing—having someone to manage things after moving in. The upgrades of zero deposit monthly payments and up to 300,000 in coverage—the former lowers the rental threshold, the latter safeguards the safety baseline."
In the past year, the scale of properties under management by Shanghai KE's Worry-Free Lease surpassed 106,000 units, with an average tenant placement period of 12.9 days, a monthly average of 14,000 units rented out, and landlord renewal rates rising to 82.91%. Behind these substantial business figures lies the commercial logic of institutionalized property management. What is the deep connection between the iteration of service value and corporate scale growth?
First Rental Payment Reduced by 76%
In June 2026, the average transaction price for a whole-unit rental in Shanghai was approximately 6,000 yuan per month. Under the traditional "one month's rent as deposit plus three months' rent upfront" model, plus agency fees, a tenant would need to pay 27,000 yuan upfront before moving in, equivalent to over three months' salary for a Shanghai university graduate. Xiao Zhou, who graduated and came to Shanghai in 2021, still remembers when an agent said a 4,000-yuan-plus apartment required nearly 20,000 yuan to start the lease. "I was stunned for a long time. How could I have that much money just starting a job? I ended up asking my family for it."
Xiao Zhou's experience is not unique. For new residents and young people in Shanghai, this "entry fee" is a tangible barrier to housing. At this launch event, Shanghai KE's Worry-Free Lease announced the full rollout of its zero deposit, monthly payment service, where a credit score above 650 allows for deposit exemption based on credit. Research indicates that over 80% of the population in Shanghai meets this requirement, effectively lowering the rental entry barrier. However, it is important to note that waiving the deposit does not mean waiving penalty fees for contract breaches; tenants are still liable for breach of contract if it occurs during the lease term.
"Deposits are essentially a 'cost of distrust,'" Xiao Zhenyu stated. "In the traditional model, landlords collect deposits to hedge against property damage risks, but for tenants, this money is in a passive state from the moment it's paid. KE's Worry-Free Lease zero deposit monthly payment uses a credit system to replace deposit guarantees. This not only effectively alleviates the financial pressure on tenants and lowers the rental threshold but also relies on the institution to underwrite risks, minimizing the 'cost of distrust' for both parties."
Xiao Zhou calculated: "Before, every lease renewal required paying three months' rent at once. During holidays or times with high spending, the pressure was immense. Now, paying monthly provides a stable cash flow. I don't have to worry about calculating when I need to pay a lump sum for rent."
Up to 20,000 Per Incident, Up to 300,000 During Management Period
If zero deposit monthly payments address pressure and threshold issues, then the up to 300,000 coverage responds to the uncertainties "after moving in." In January of this year, a water faucet connection in a property owned by Ms. Gu in Shanghai's Pudong New District burst, causing water leakage to the unit below. The tenant sought compensation, the neighbor pursued liability, and responsibility was unclear—a typical long-standing scenario in the rental market.
"After reporting the issue, the concierge came immediately, saying this was covered under their service guarantee. They not only arranged temporary accommodation for the tenant but also helped repair my property and the downstairs neighbor's," Ms. Gu recounted.
"Ms. Gu's experience represents a long-standing problem in the rental market. When accidents occur, responsibility between tenant and landlord is often blurred, leading to disputes," Xiao Zhenyu explained. "KE's Worry-Free Lease's up to 300,000 service guarantee provides certainty for both parties when facing unexpected events."
It is understood that the high-value service guarantee launched by Shanghai KE's Worry-Free Lease covers both landlords and tenants. For landlords, it provides up to 20,000 yuan per incident for personal injury within the property, up to 10,000 yuan for property damage, and up to 100,000 yuan for property accident coverage. For tenants, it provides up to 10,000 yuan per incident for personal injury and up to 5,000 yuan for property damage. During the property management period, the total coverage for both parties is up to 300,000 yuan. The coverage includes non-man-made incidents such as fire, gas explosion, glass breakage, water leakage, structural damage, or collapse during the lease term.
"It gives more peace of mind," Ms. Gu said. "If I rent out my property and something happens to the tenant inside, I certainly can't avoid responsibility. This is like adding a safety valve for me."
The Link Between Service and Scale
Huang Hui, Chief Analyst of the Rental Industry at KE Research Institute, shared a report titled "Certainty in Rental Living in an Era of Change" at the event. The report proposes that the value logic of the rental industry is expanding from "matching efficiency" to "certainty supply"—consumers are no longer just pursuing a place to sleep but multiple certainties regarding lease terms, costs, repairs, and safety. The larger the corporate scale, the more precise the focal points for service certainty become. This is precisely the core criterion for judging whether the institutionalized model can truly succeed. It also answers the opening question about the inevitable positive correlation trend between service and scale.
The "Housing Rental Regulations" proposed on September 15, 2025, are the first specialized administrative regulations in China's housing rental sector. The same year's Government Work Report also首次 proposed building "safe, comfortable, green, and smart 'good houses.'" Under the combined forces of legalization, institutionalization, and quality improvement, the inflection point for the rental market shifting from "availability" to "quality" has been repeatedly discussed.
When the concept of service certainty becomes ingrained in a company's DNA, business scale will no longer be the primary question for its leaders. This launch event represents a阶段性 answer sheet submitted by KE's Worry-Free Lease, but the final score will be determined by time.
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