The Lease

Because lease terms are heavily set by negotiation, it is crucial to check the wording of your contract. Make sure you ask for a copy of the contract in both Chinese and English and get an impartial third party to read through it. A common oversight is failing to check who is liable for repairs and get stung when the boiler breaks down or the air-con fails. Usually the tenant is responsible for damage to the property but the landlord must deal with general wear and tear. Landlords are responsible for maintenance of existing fittings and furniture, but remember all contracts vary.

Security deposits are standard practice and are typically the equivalent of one or two month’s rent, to be paid on signing the lease. After a contract has been signed both you and the landlord are required by law to register the agreement at the local police station. Some landlords will try to avoid this because registering means they become liable for the compulsory stamp duty, (0.1% of the rent). Expats risk a fine if they do not register within 24 hours of moving into a property.

A full inventory of existing furniture should be included in the contract to avoid disputes when you move out. It is rare for disputes to reach tribunal level; the system is overly complicated and it is often more trouble than it’s worth. If no compromise can be reached however, foreigners can sue in the People’s Court of the district where the property is located. The statute limitation for rental disputes in two years.

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