In this article, we describe common do’s and don’ts after you find a good apartment to rent. You want to make sure that, hopefully, nothing goes wrong between you and your landlord.

There are countless stories in China of problems between foreigners renting apartments and their landlords. This does not mean that there are no good landlords out there—landlords who will help you out promptly with either repairs or other requests and return your deposit when you move out. Much depends on how you handle the relationship from the start.

We list reasons why you need to make sure that your landlord is trustworthy:

• If something breaks or there is a problem—e.g. water leak, cracks in walls/floor tiles, no hot water—inform your landlord as soon as it happens. It’s a landlord’s responsibility to help as it is their apartment. They should want to know promptly if anything is wrong. It’s your responsibility to keep your landlord informed as he/she may hold you liable for covering costs if a minor issue turns into a major issue.

• When you sign your lease and pay your deposit, you want to make sure that you can get it back at the end of your lease. However, many landlords work to find reasons not to return it. One strategy is to have the deposit count as the last month’s rent and ensure this is in the lease agreement.

• When you register your residence at the local police station, the police may require your landlord to be present. Therefore, you’ll need your landlord to be available and cooperative. If you are unsure whether the local police station will require it, it’s best to confirm the landlord will cooperate before signing the lease agreement.

Most common landlord problems

• The landlord demands you move out of the apartment on very short notice; for example, when the apartment is being sold.

• The landlord announces a rent increase, with immediate effect, and no notice.

• The landlord refuses to return your deposit at the end of your lease.

• The landlord is reluctant to deal with issues you reported in the apartment or is unresponsive to your requests.

Questions to ask yourself before you sign a lease contract

• Where does the landlord live? 

If the landlord doesn’t live in the same city as the rental apartment this is an obvious red flag.

• Will the landlord come to help you with the police registration? 

If the landlord agrees, it is positive as it indicates he/she has nothing to hide. But, if the landlord refuses and wants to avoid the police this can indicate he/she may not be up to date paying housing taxes, or for some other reason. This is an obvious red flag.

• Can you keep your pets in the apartment? 

(if applicable) Related negotiations, such as a larger deposit, may be required.

• Where are the utility meters for gas, electricity and water? (and, how are the utilities paid?) 

Some buildings still operate with the card system where you must load money on a card and then load the meter. The cards are either loadable at a bank, convenience stores, or the management office, depending on the property. Others, you can pay online on WeChat or Alipay if you have account details. Do not pay for utility service before you move in. Check for utility usage before your move in date being included in your first service bills.

• How often should the rent be paid? 

The most common arrangement is for rent to be paid on a quarterly basis with a one-month deposit. However, you may want to work this into your rent price negotiation strategy. We do not suggest you pay annual rent as then you have no recourse if problems occur.

• How should the rent be paid? 

Some landlords prefer to collect rent by coming to the apartment and collecting cash. Others prefer bank transfers, and others prefer WeChat or Alipay. The important thing is that you maintain proof that you paid.

• How will you get a rent invoice? 

(if applicable) Will the landlord or housing agent take care of this? If the landlord or housing agent is willing to take care of it, it means less hassle for you. You need to check the validity of the invoice for your reimbursement purposes and confirm that this is included in the agreed rental price.

The Nature of Chinese Contracts

First, you should know that in China contracts are often viewed as non-binding, loose agreements. Some landlords are extremely unscrupulous, and will not hesitate to turf you out with only a few days’ notice because they’ve decided to sell the apartment or want to move their son or daughter in. Others will cite any excuse to avoid returning your deposit, and others will make themselves hard to reach during the term of your lease, causing endless frustration if you need repairs done or encounter other problems. Of course, when rent is to be paid, they will always be there on time!

What to look out for in a rent contract

Check through your lease contract to make sure these provisions are properly dealt with:

• Clearly stated start date and end date

• Notice period each party is required to give if the contract needs to be cancelled

This is very important in China as landlords have become known for breaking contracts at a moment’s notice. If this happens, fighting them for compensation can be difficult even if you can show they acted in contravention of your contract. Still it’s useful to be able to prove they’re in the wrong.

• Equal penalties for both parties

Make sure that the landlord will be penalized in the same way for kicking you out as you will be for breaking the lease without providing proper notice.

• Lease extension

Check provisions for extending your lease. How long in advance do you need to inform the landlord if you wish to extend? Can you renew directly with him, or do you need to go through an agent again? If you extend will the dates extend and there be no other changes? 

• Ending the lease

If you decide not to renew your lease at the end of the lease period, check whether (or how early) you will be expected to make the apartment available for show to potential new tenants.

• Selling the apartment

Check that the lease includes a provision for what happens if the landlord decides to sell the apartment while you are still living in it. You should not be required to show your apartment to potential buyers. It would, however, be up to the new buyer whether to continue the lease.

• Contents of the apartment

Check the furniture/appliances/other items listed in the lease. Make sure what listed is actually in the apartment. Note the damages together with the landlord on a list that has both signatures.

• Rent payment

Verify how often, when, and how the rent should be paid, and the penalty for late payment.

• Landlord’s contact details

It’s best if you get a direct contact for the landlord – if possible, avoid having a real estate agent act as a middleman between you and the landlord.

• Local police station

Ask for address or directions to the local police station, so you can register your residence as soon as you move in – you are legally obliged to do this. Ask for the relevant documents commonly needed when registering.

• “Second landlord” 

Some agents, and other parties, can legally act on behalf of the landlord. These people are known as “second landlords.” In this situation there is a formal document describing the arrangement. Such authorizations are usually very detailed. Some may just say that the other party can act on landlord’s behalf, whereas others go as far as handling all related maintenance matters and rent collection, as well. 

If you are in this situation, ask to see the original authorization document; keep a copy as an attachment to the lease contract.

Note: documents required for the police station registration are based on the landlord, not the second landlord.

Special thanks to David Atnip for his contributions to this article. 

About the authors:

Julian runs a company that works with individuals and organizations doing business between the US, China, and Africa. He has been based in China for a number of years.

Ikbal (known by the nickname “Ikky”) is an R&D Manager working in Shanghai. He has been living in China for over 11 years.

Jatin (known by the nickname "Prince Jatin") is a multicloud DevOps Engineer working in Shanghai. He has been living in China for over seven years and owns three Indian community WeChat groups known for "Helping Indians" with their specific inquiries.

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