China Houses Apartments and the laws

The rental housing sector is strongly regulated, but the system favors property owners. The landlord is covered by the guarantee money and the discrimination of tenants is not restricted. real estate

Rents: Can tenants and landlords freely agree to rents in China?

China has ancient rent control law, the Cultural Revolution remains (1966-1976). These controls are not strictly enforced and legislation and regulations are passed at local level to remove them.

In major centers such as Beijing, Shanghai, Guangzhou and Shenzhen, there is no rental control. Rent adjustments shall be subject to the contract provisions.

Most rents are quoted in USD monthly. Due to the switch to a floating currency system, however, the quoted rents in RMB are increasing.

Deposits

Guaranty money is usually about two to three months' rent. Securities deposit. A down payment or advance payment is generally required for a rental of one month. In some cases, the deposit is only one month's rental, but the tenant must pay the rent in advance for 3 months. (Please click here for a sample contract)

Within 20 days of the tenancy's end, the guarantee money is returned without interest, and after repair costs and unpaid utilities have been deducted. If the deposit is not enough, the tenant is usually required to pay the amount within 15 days.

What rights have landlords and tenants in China, particularly in terms of contract duration and disposal?

The usual leasing period is 12 months and a 2nd year can be renewed. If the tenant wishes to renew the contract, the landlord shall notify the landlord 2-3 months before the contract expires.

If the landlord wishes to terminate the contract unilaterally prematurely, he has to pay a double payment and double the guaranteed money, for a total of approximately 8 months. If the tenant terminates the contract prematurely, the guaranty money and the down payment will be lost.

For late payments the tenant is charged 0,5 percent interest per day. If the amount is 20 days unpaid, the landlord can cancel the contract and take the guarantee money. If the tenant is subordinate to the house without the written consent of the landlord, this shall constitute a breach of contract and shall entitle the landlord to a three-month rent compensation.

If the tenant does not remove his property from the rental unit within 10 days of the end of the contract, the renter shall be entitled to disposal without compensation of the tenant of the property.

Subleasing is not permitted in general.

Non-payment EVICTION OF RENT

Duration until process service is completed 15

Trial Duration 105

Enforcement Duration 60

Total Evict Tenant Days 180

Courts: Project Lex Mundi

How effective is the legal system in China?

Most contracts require friendly settlement of landlord and tenant disputes. The households must obtain permits to lease their properties, and the local agency such as the Beijing Municipal Public Security Agency must register all tenancies and sub-tenancies.

Legislation

There is no specific national law on landlords and tenants. Local government units pass legislation; circumstances in two different cities may vary widely.

In 2000, the city of Beijing allowed its residents to rent their property legally for profit.