Beware of “Pitfalls” When Renting: What You Need to Know Before and After Your Lease

In an exclusive interview, experts emphasize the importance of protecting the rights of renters, calling for clear penalties for improper actions by real estate agents and advocating for timely regulatory oversight.

For many individuals relocating for work, renting a place to live is a critical step. However, both before moving in and when vacating a property, tenants often encounter numerous “pitfalls.” Due to a lack of adequate regulation and complicated procedures for exercising their rights, renters frequently find themselves in tough situations.

“I thought the layout was great and the place looked clean during the viewing, but after moving in, I discovered multiple issues,” shared Zhang Wen, who works at a shopping mall in Beijing’s Chongwenmen area. She had high hopes for her new rental but quickly encountered problems.

In late September, Zhang moved into her new apartment only to find unpleasant odors from the refrigerator, a malfunctioning range hood, and frequent circuit breaker trips. What frustrated her most was that the agent had not disclosed these issues beforehand; now, the agent and landlord are blaming each other, making it difficult for her to seek recourse.

Zhang’s experience is not unique. In August, the Housing Rental Association in Hefei, Anhui Province issued warnings advising citizens to choose reputable rental companies and to avoid paying large sums of rent upfront. Interviews conducted by The Workers’ Daily revealed that renters often struggle to assert their rights amid issues like withheld deposits and “subletting” scams.

Tenants Find It Difficult to Assert Their Rights

Conflicts over damages and fees can also arise when tenants are moving out. In July, Wang Rong, who works in Xi’an, found a two-bedroom apartment through a real estate agent with a one-year lease. On the day she signed, she paid three months’ rent and a security deposit of 2,400 yuan. However, within the first month, both she and her roommate began experiencing health problems, including dizziness and nausea.

After conducting air quality tests, Wang discovered that the formaldehyde levels in the master bedroom exceeded national safety standards. When she attempted to terminate the lease early and retrieve her deposit and third month’s rent, the agent refused. “They wouldn’t accept our test results and told us we had to vacate within a week if we didn’t renew the lease; they also said we wouldn’t get the rent back and would have to pay for the depreciation of the apartment,” she recounted.

Meanwhile, Cai Bin, a rideshare driver in Lanzhou, had a troubling experience on his move-out day. He had paid a monthly rent of 1,000 yuan and a 450 yuan agency fee. Although the landlord assured him that his deposit would be returned within three days, he faced deductions for issues that he claims were present when he moved in. “I felt wrongly accused; the washing machine had leaked from the start,” Cai said, adding that his attempts to resolve the situation were unsuccessful, leading him to consider legal action, which he deemed too costly for a 1,000 yuan dispute.

Low Costs for Breaking Agreements

Chen Wei, a partner at Guohao Law Firm in Shenzhen, noted that landlords typically hold a stronger position, often facing lower penalties for breaking agreements. The convoluted processes involved further deter renters from pursuing legal action for relatively low-stakes disputes. Additionally, since residential lease disputes are considered civil matters between equal parties, administrative agencies have limited ability to intervene directly, often resorting to mediation, which may not lead to satisfactory outcomes for either party.

Some “black agents” lure tenants looking for short-term leases into signing long-term contracts, profiting from deposit forfeitures under false premises. Wang Ning, an employee at a construction company in Jinan, faced a similar situation when, after requesting a three-month lease, the agent insisted on a one-year contract, stating they would help find another tenant later. When the lease ended in August and the attempt to sublet failed, the agent withheld Wang’s 1,500 yuan deposit.

Mr. Qin, a representative from a chain real estate agency in Beijing, conveyed that the low barriers to entry in the real estate market lead to varying service quality and the proliferation of small firms that evade oversight. Many “black agents” employ deceptive practices that result in clients losing their deposits, typically ranging from 1,000 to 2,000 yuan.

In light of these challenges, Chen advises renters facing disputes without the possibility of resolution to contact local government offices or consumer rights organizations for help. Legal action is another option, albeit one that should be considered carefully.

Mitigating Tenant Vulnerabilities

Research on court decisions related to rental contract disputes suggests that many tenants succeed in asserting their rights through legal channels. For example, a case revealed that owners who withheld a tenant’s deposit due to claimed property damages were ordered to return the majority of the deposit, as the court found insufficient evidence of tenant misconduct.

Chen also emphasized the importance of record-keeping for renters, advising them to document all items, appliances, and deposits, and to never rely solely on verbal assurances. Clearly outlining each party’s rights and responsibilities in the lease agreement can also help avoid conflicts down the line.

Experts reaffirm that resorting to litigation should be a last resort, urging improvements to legal frameworks and enhanced regulatory oversight to protect renters. Specific penalties for deposit theft, false listings, and other infractions should be established, alongside initiatives for self-regulation within the industry.

Recent regulatory reforms indicate progress, such as the recent measure from Beijing’s Housing and Urban-Rural Development Committee that mandates rental companies managing deposits to store them in third-party accounts, with tenants able to verify this information—reflecting a shift towards better protection for renters in China. (Note: Names of interviewed tenants have been changed.)