Beijing Introduces Escrow System to Regulate Rental Market and Protect Tenants' Rights

The proposal recently unveiled by Beijing's housing authorities, med at regulating rental fees within China's capital city, is expected to reinvigorate the leasing market. By enforcing a set of measures that prioritize and safeguard tenants' rights, this initiative seeks to address disputes, thereby instilling confidence among renters.

A key component of the draft guideline stipulates that real estate companies handling lease durations exceeding three months must deposit a portion of the rental income into escrow accounts. This ensures that landlords cannot misuse tenant deposits, providing tenants with peace of mind and recourse for recovery through unique contract numbers tied to their agreements.

Open for public consultation until March 5th, this measure targets rental businesses in the city engaged in leasing or subleasing. The escrow accounts serve solely for deposit purposes and do not permit overdrafts unless specifically authorized.

This regulation is anticipated to bolster Beijing's long-term leasing market by fostering a more transparent and depable environment for tenants. By enhancing oversight and rights protection, it establish trust among renters and encourage sustned engagement in the rental sector.

The implementation of this proposal signifies an important step towards ensuring fr practices within China’s real estate market, particularly focusing on the needs of leaseholders. The measures taken m not only to regulate fees but also to promote a secure and accountable relationship between landlords and tenants under Beijing's jurisdiction.
This article is reproduced from: https://www.scmp.com/business/china-business/article/3253545/beijing-housing-authoritys-proposal-regulate-rental-fees-will-revive-confidence-leasing-market

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