Rental Agreement Checklist Under Chinese Law 2026: A Practical Guide for Tenants and Landlords

Direct answer: Under Chinese law, a valid rental agreement must be in written form for leases exceeding six months, and must include at least the following: names and addresses of both parties, property details, rent amount and payment method, lease term, use of the property, maintenance responsibilities, and termination conditions. The Civil Code of the People's Republic of China (2021) is the primary legal framework governing rental agreements. This checklist will help you avoid common pitfalls and ensure your lease is legally sound.

Step 1: Understand the Legal Framework

China's rental laws are primarily based on the Civil Code (2021), which replaced the earlier Property Law and Contract Law. Key articles include:

• Articles 703–734 (Lease Contracts): Cover formation, rights, obligations, and termination.
• Article 706: A lease exceeding six months must be in writing; otherwise, it is treated as an indefinite-term lease.
• Article 708: The landlord must deliver the property in a condition suitable for the agreed use.
• Article 711: The tenant must use the property in accordance with its purpose and cannot damage it.
• Article 715: The tenant may sublet only with the landlord's consent.
• Article 723: If the property is sold during the lease, the new owner must honor the existing lease.

Other relevant laws include the Urban Real Estate Administration Law and local regulations (e.g., Beijing, Shanghai have specific rental rules). The Labor Contract Law is not directly applicable to residential leases, but if you are renting a property for business purposes, labor laws may affect workplace safety requirements.

Step 2: The Rental Agreement Checklist

Use this numbered checklist to verify your lease meets legal requirements:

1. Parties' Identification: Full names, ID numbers (passport for foreigners), and contact information. Landlords must provide proof of ownership (e.g., property title certificate).
2. Property Description: Address, size, layout, and condition. Include a detailed inventory of furniture and appliances. Photos or videos are recommended as evidence.
3. Lease Term: Start and end dates. If the term exceeds six months, the contract must be in writing. Renewal terms should be specified (e.g., automatic renewal or mutual agreement).
4. Rent and Payment: Monthly rent amount, currency (usually RMB), payment due date, and method (bank transfer, Alipay, WeChat). Late payment penalties must be reasonable (e.g., 0.5% per day is common but may be reduced by courts if excessive).
5. Deposit (Security Deposit): Maximum amount is typically one to two months' rent. The contract must state conditions for deduction (e.g., damage beyond normal wear and tear) and the timeline for return (usually 7–15 days after lease end).
6. Use of Property: Specify whether it is for residential or commercial use. Prohibit illegal activities. If the tenant is a foreigner, the property must be registered with the local police station within 24 hours of moving in (Public Security Administration Punishments Law).
7. Maintenance and Repairs: Landlord is responsible for major repairs (e.g., plumbing, electrical, structural issues). Tenant is responsible for minor maintenance (e.g., light bulbs, clogged drains). If the landlord fails to repair after notice, the tenant may repair and deduct costs from rent (Civil Code Article 713).
8. Subletting and Assignment: Subletting requires the landlord's written consent. Unauthorized subletting gives the landlord the right to terminate the lease (Civil Code Article 716).
9. Termination Conditions: Grounds for early termination (e.g., breach of contract, property damage, health hazards). Notice period (usually 30 days). If the landlord terminates without cause, they must compensate the tenant (e.g., one month's rent).
10. Governing Law and Dispute Resolution: Chinese law applies. Specify whether disputes will be resolved through arbitration (e.g., China International Economic and Trade Arbitration Commission) or litigation in a specific court (e.g., the district court where the property is located).
11. Signatures and Date: Both parties must sign and date the contract. If the landlord is a company, the contract must be stamped with the company seal. For foreign tenants, a passport copy is sufficient.

Step 3: Practical Steps to Finalize the Agreement

1. Inspect the Property: Visit the property in person before signing. Check for damage, mold, pests, and working appliances. Take dated photos and videos.
2. Verify Landlord's Identity: Ask for the property title certificate (房产证) and the landlord's ID. If the landlord is an agent, request a notarized power of attorney.
3. Negotiate Terms: Discuss rent increases (if any), maintenance responsibilities, and the deposit return process. Get everything in writing.
4. Read the Fine Print: Look for hidden fees (e.g., property management fees, utilities) and clauses that limit your rights (e.g., "no guests allowed" or "landlord can enter without notice").
5. Register the Lease: In many cities (e.g., Beijing, Shanghai, Guangzhou), residential leases must be registered with the local housing authority or police station. This protects both parties and is required for visa purposes for foreigners. If the landlord refuses to register, you can report them to the local housing bureau.
6. Make Payment Securely: Use bank transfers or recognized payment platforms. Avoid cash payments. Keep all receipts and transaction records.

Step 4: Caveats and Common Pitfalls

• Verbal Agreements: For leases over six months, oral contracts are not enforceable. If you have a verbal agreement, treat it as a month-to-month lease.
• Rent Increases: The Civil Code does not cap rent increases, but local regulations may (e.g., Beijing limits increases to 5% per year for certain properties). Always negotiate and include a cap in the contract.
• Property Management Fees: These are separate from rent. Clarify who pays them (usually the tenant).
• Utilities: Electricity, water, gas, and internet are typically the tenant's responsibility. Check that meters are read at move-in and move-out.
• Foreign Tenants: You must register your residence with the local police station within 24 hours of moving in. Failure to do so can result in fines (up to 2,000 RMB) and visa complications.
• Early Termination: If you break the lease, you may lose your deposit and be liable for rent until a new tenant is found. Some contracts include a "break clause" with a penalty (e.g., one month's rent).
• Property Sale: If the landlord sells the property, your lease remains valid (Civil Code Article 725). The new owner cannot evict you until the lease ends.

Frequently Asked Questions (FAQs)

FAQ 1: Can the landlord enter my apartment without notice?

Answer: No. Under the Civil Code, the tenant has the right to quiet enjoyment. The landlord must give reasonable notice (usually 24 hours) and obtain your consent before entering, except in emergencies (e.g., fire, gas leak). If the landlord enters without permission, you can complain to the local housing authority or police.

FAQ 2: What happens if the landlord fails to make necessary repairs?

Answer: Under Civil Code Article 713, if the landlord does not repair after you give written notice, you may repair yourself and deduct the cost from rent. However, you must keep receipts and provide copies to the landlord. If the property becomes uninhabitable, you may terminate the lease without penalty.

FAQ 3: Can I sublet my apartment to a friend?

Answer: Only if the lease explicitly allows subletting or you obtain the landlord's written consent. Unauthorized subletting gives the landlord the right to terminate the lease and evict both you and your friend. Always get permission in writing.

FAQ 4: What should I do if the landlord refuses to return my deposit?

Answer: First, send a formal written demand with evidence (e.g., photos showing no damage, proof of payment). If the landlord still refuses, you can file a claim in the People's Court (small claims procedure for amounts under 50,000 RMB). You may also call 12348 (China Legal Services Hotline) for free legal advice.

Call to Action

Rental agreements can be complex, especially for foreign tenants navigating Chinese laws. If you have a specific situation—such as a dispute with your landlord, a subletting issue, or a contract that seems unfair—use our online legal assistant to get personalized guidance. Simply describe your case, and our AI tool will help you understand your rights and next steps under the Civil Code and local regulations.

Laws and regulations are subject to change and local interpretation. For authoritative answers, consult a licensed lawyer or call 12348 China Legal Services.