Viewpoint | Interpretation of the Allocation of Rights and Obligations between Landlords and Tenants under the "Housing Lease Regulations"
Published:
2025-09-05
On July 21, 2025, the State Council officially announced the "Housing Leasing Regulations," which will come into effect on September 15, 2025. This is China's first administrative regulation specifically governing the housing rental market. Based on higher-level laws such as the "Civil Code," the regulations further clarify the rights and obligations of the parties involved in leasing and establish necessary guidance and supervision measures for market entities such as housing rental companies and brokerage agencies. The introduction of these regulations comes at a critical time when China's real estate market is accelerating its transition to a dual system of renting and purchasing. The aim is to provide strong legal protection for the high-quality development of the housing rental market by improving institutional supply. In recent years, the housing rental sector has faced practical issues such as substandard housing conditions, unstable rental relationships, and frequent deposit disputes. The regulations address these challenges by balancing the interests of landlords and tenants, moderately favoring tenant rights, and highlighting a legislative focus on safeguarding people's livelihood. This article will focus on analyzing the allocation of rights and obligations between landlords and tenants under these regulations, aiming to accurately apply the new rules and prevent legal risks.
Introduction
On July 21, 2025, the State Council officially announced the "Housing Leasing Regulations," which will come into effect on September 15, 2025. This is China's first administrative regulation specifically governing the housing rental market. Based on higher-level laws such as the Civil Code, the regulation further clarifies the rights and obligations of the parties involved in leasing and sets necessary guidance and supervision measures for market entities such as housing rental companies and brokerage agencies. The introduction of the regulation comes at a critical period when China's real estate market is accelerating its transition to a "dual-track" system of renting and purchasing. It aims to provide strong legal protection for the high-quality development of the housing rental market by improving institutional supply. In recent years, the housing rental sector has faced practical issues such as substandard housing conditions, unstable rental relationships, and frequent deposit disputes. The regulation addresses these challenges by balancing the interests of landlords and tenants, moderately favoring tenant rights, and highlighting a legislative orientation focused on safeguarding people's livelihood. This article will focus on analyzing the allocation of rights and obligations between landlords and tenants under the regulation to ensure accurate application of the new rules and prevent legal risks.
Chapter 2 of the "Housing Leasing Regulations" provides detailed provisions on the rights and obligations of landlords and tenants, aiming to regulate leasing behavior and primarily protect the legitimate rights and interests of tenants. These provisions address prominent issues in leasing practice, such as substandard housing conditions, deposit disputes, and forced eviction, further refining the general rules on lease contracts in the Civil Code. The following interprets the main obligations and rights of both parties from aspects such as real-name contract signing and filing, restrictions on housing rental use, deposit management, and lease termination procedures:
1. Real-name Contract Signing and Contract Filing System
Article 8 of the regulation requires landlords and tenants to sign housing lease contracts using real names and to file the contracts with the housing management department as prescribed. If the landlord fails to file, the tenant may file on their behalf. This "real-name + filing" system aims to increase transparency in rental transactions, ensure transaction security, and facilitate public service coordination. It should be noted that according to Article 706 of the Civil Code and judicial interpretations, failure to register or file a lease contract does not affect its validity. It is explicitly stated that if parties fail to file a housing lease contract as required by law, it should not affect the contract's legal effect. Therefore, filing is an administrative management obligation rather than a condition for contract validity, and unfiled contracts remain valid between landlords and tenants. However, from a practical perspective, filing helps serve as public notice and can be used as evidence to prove the leasing relationship, protecting tenant rights in case of ownership changes (the "sale does not break lease" principle). Filing records also help tenants enjoy various public services, as some cities require filing certificates to implement the "equal rights for renters and owners" policy. The regulation encourages convenient filing through local housing rental service platforms and grants tenants the right to supplement filing, reflecting flexibility oriented towards tenant needs. It is worth mentioning that the regulation does not directly stipulate penalties for failure to sign contracts with real names or to file, but it sets penalties for enterprises and intermediary agencies that fail to file as required in the legal liability section. "Sale Does Not Break Lease" (continued from previous) "Equal Rights for Renters and Owners" The regulation encourages convenient filing through local housing rental service platforms and grants tenants the right to supplement filing, reflecting flexibility oriented towards tenant needs. It is worth mentioning that the regulation does not directly stipulate penalties for failure to sign contracts with real names or to file, but it sets penalties for enterprises and intermediary agencies that fail to file as required in the legal liability section.
2. Conditions and Use Restrictions for Rental Housing
In response to the prevalent issues of "group rentals" and the rental of unsuitable living spaces, Article 7 of the regulation clearly restricts the types of housing that can be rented out. Rental housing must comply with laws, regulations, and mandatory standards related to construction, fire safety, gas, and interior decoration, and must not endanger personal safety and health. This means that houses failing fire safety inspections or with structural layouts seriously inconsistent with planning are prohibited from being rented for residential purposes. If such housing is rented out, tenants have the right to terminate the contract according to Articles 724 and 731 of the Civil Code. Additionally, non-residential spaces such as kitchens, bathrooms, balconies, corridors, underground storage rooms, and garages cannot be rented out separately for residential use. This provision is a mandatory administrative regulation aimed at preventing the rental of unsuitable living spaces. Violations of this provision do not invalidate the lease contract itself, but landlords will face administrative penalties. Article 39 of the regulation specifies that renting out such non-residential spaces or violating limits on the number of occupants or minimum living area per person will result in orders for correction and warnings from the housing management department; refusal to correct will lead to fines ranging from 20,000 to 100,000 yuan for units and 2,000 to 10,000 yuan for individuals, along with confiscation of illegal gains. Moreover, city governments may set limits on the maximum number of tenants per room and minimum living area per person based on local conditions; violations of these standards also constitute infractions. In summary, the regulation sets red lines to ensure basic residential safety and quality. Landlords must ensure their properties meet legal living conditions; otherwise, they not only infringe on tenant rights but also face administrative penalties.
3. Main Obligations of the Landlord
The regulation refines the behavioral norms for landlords, strengthening their duties to inform and guarantee, preventing the common past abuses by powerful landlords infringing on tenant rights:
(1) Provide Legal Ownership Information of the Property: Before handing over the property, the landlord must present identity documents and the property's real estate ownership certificate or other proof of legal rental rights to the tenant, and cooperate with the tenant in legally verifying the property information. In other words, the landlord has the obligation to prove ownership or sublease rights to prevent tenants from renting properties without proper rental rights and suffering losses.
(2) Verify Tenant Identity: The landlord must check the tenant's identity documents and must not rent to units or individuals who refuse to provide identification. This implements "real-name renting" and helps maintain public security.
(3) Respect Tenant's Right to Peaceful Residence: Without the tenant's consent or legal provisions, the landlord must not enter the leased housing without authorization. This strengthens the tenant's right to possession and use of the property during the lease period, possession and use rights and protects their privacy and safety, preventing landlords from entering without notice. Except in cases such as emergency repairs or other legally stipulated or mutually agreed circumstances, landlords must obtain tenant permission before entering.
(4) Regarding Deposit Handling: Deposits are a focal point of rental disputes. Article 10 of the regulation requires that if a deposit is collected, the contract must specify the deposit amount, refund time, and conditions for deductions. Except as agreed in the contract, landlords may not deduct the deposit without just cause. This clarifies the landlord's obligation: if no losses are agreed upon at the end of the lease, the landlord must refund the full deposit on time and may not withhold it arbitrarily. This provision reduces landlords' discretion to arbitrarily withhold deposits. If violated, tenants can protect their rights according to the contract and regulation.
(5) Reasonable Exercise of Termination and Eviction Rights: According to Article 12 of the regulations, if the lessor lawfully terminates the lease contract, they must notify the lessee in advance and provide a reasonable grace period for vacating. "Lawful termination" here usually refers to situations where the lessee breaches the contract or other legal provisions, granting the landlord the right to terminate. When exercising the right of termination, the landlord should notify the tenant in writing and provide a reasonable grace period for vacating to allow the lessee time to find a new residence and move their belongings.
4. Main Obligations of the Lessee
As the party corresponding to rights and obligations, the lessee must also comply with certain norms during the lease. Article 11 of the regulations lists the obligations of the lessee:
(1) Provide truthful identity information: The lessee should present identification to the lessor when signing the contract. This corresponds to the lessor's verification obligation and ensures real-name registration of the lease.
(2) Use the property safely and reasonably: The lessee must not damage, dismantle, or disable fire safety equipment without authorization, must not alter the load-bearing structure of the house, and must not illegally connect water, electricity, or gas lines. These are basic requirements to ensure the structural and fire safety of the property.
(3) Do not change the use or structure of the property without consent: The lessee must not change the use of the leased property without permission, nor dismantle or alter interior facilities or other structures without authorization. For example, converting a residential property for business use or arbitrarily partitioning rooms requires the lessor's consent; otherwise, it constitutes a breach of contract. The landlord may lawfully terminate the contract and demand restoration or compensation for damages.
(4) Comply with property management rules and social ethics: The lessee should abide by the community's property management regulations and must not litter, discharge pollutants beyond standards, create noise, keep pets in violation of rules, build illegally, occupy public passages, throw objects from heights, or engage in other behaviors that harm others' rights. These obligations mostly fall under daily management and public order and morality. Violations may result in property management warnings, administrative penalties, or even civil liability.
(5) Cooperate with necessary entry matters: The lessee should cooperate when the lessor lawfully needs to enter the property. Of course, this obligation must be based on a lawful necessity; if the landlord harasses under the pretext of inspection, the lessee may refuse.
(6) Prohibit illegal use of the leased property: Additionally, Article 37, Paragraph 2 of the regulations emphasizes that the lessee must not use the leased property for illegal or criminal activities. This aligns with provisions such as the Public Security Administration Punishment Law and represents a baseline requirement for lessee behavior. In summary, while enjoying residential rights, the lessee should care for the property and live civilly according to the contract and laws; otherwise, they may bear breach of contract compensation liability and, in serious cases, face administrative or even criminal consequences.
5. Deposit Refund and Maintenance During the Lease
Deposit issues are very common in leasing. The regulations standardize deposit refunds through contract provisions and prohibitions on behavior: first, emphasizing that deposit terms should be clearly stipulated in the contract, such as the deposit amount, specific refund time, and circumstances under which the deposit can be deducted. This requires clear and specific contract terms for ease of enforcement and supervision. Secondly, except for contractually agreed situations, the lessor may not deduct the deposit without just cause. Common agreed deduction scenarios include the lessee owing rent or utility fees, or clear damages to the property requiring repair upon move-out. Outside these explicit agreements, landlords may not arbitrarily withhold deposits under the guise of cleaning fees or penalties; otherwise, it constitutes "unjustified deduction," and the lessee may claim a refund under the regulations. Regarding maintenance obligations during the lease term, the regulations do not specifically stipulate, but according to Article 733 of the Civil Code, the lessor should bear maintenance responsibilities; otherwise, the lessee may repair themselves and request reimbursement. Therefore, if deposit deductions are due to natural wear or losses caused by the lessor's failure to repair timely, the lessee may argue they should not bear the cost. These points remind landlords to handle deposits cautiously and tenants to keep evidence of contract performance and property condition.
6. Proper Lease Termination Procedures and Integration of Rental and Purchase Rights
To enhance the stability of leasing relationships, the regulations adopt a series of measures to protect the lessee's long-term residential rights. As mentioned earlier, prohibiting landlords from violent eviction, requiring notification, and providing reasonable vacating periods protect the lessee's residential stability procedurally. Additionally, Article 13 states: "When a housing lease contract is continuously performed for a specified period, the lessor enjoys policy support as prescribed, and the lessee enjoys basic public services as prescribed." This aims to encourage long-term stable leasing. The "specified period" is expected to be further clarified by relevant policies. After reaching this period, the lessee enjoys basic public services, meaning that in education, medical care, elderly care, and other public service areas, renters will gradually enjoy equal treatment with homeowners—this is a concrete implementation of "equal rights for renting and buying." In recent years, some cities have explored policies such as allowing renters to register residency and enabling children of renters to attend nearby schools. The regulations confirm this direction in administrative regulations, requiring relevant departments to protect lessees' public service rights accordingly. Correspondingly, policy support for lessors may include tax incentives, financial support, etc., encouraging landlords to rent long-term and voluntarily register and pay taxes. This balances both parties' interests while guiding the establishment of long-term stable leasing relationships and alleviating lessees' concerns about mid-term eviction or restricted public rights.
7. Conclusion
In summary, the regulations' allocation of rights and obligations between lessors and lessees reflects the approach of "clear rights and responsibilities, tenant protection, and safety first." For landlords, they must fulfill obligations such as providing information, maintaining the property, and properly managing deposits, respecting tenants' lawful rights. For tenants, they must act in good faith, use the property safely, and comply with laws and regulations. It is foreseeable that the implementation of these regulations will reduce leasing disputes, improve the rental experience, and truly realize the goal of "adequate housing and comfortable living."
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