Beijing housing authority’s proposal to regulate rental fees will revive confidence in leasing market, analysts say
- The draft proposal issued by the housing authorities in China’s capital will support and reinforce the rights of tenants in the event of disputes
- One measure requires housing rental companies to put a part of the rent into escrow accounts to help tenants recover deposits
A proposal mooted by Beijing’s housing authority to regulate rental fees could boost the long-term leasing market in China’s capital, as heightened supervision would reinforce the rights and interests of tenants, according to analysts.
Beijing’s Municipal Commission of Housing and Urban-Rural Development issued a draft measure on Tuesday, which requires housing rental companies that collect rent for more than three months at a time to deposit part of it into a third-party escrow account. Tenants will be allowed to monitor the account using a unique number tied to their contracts.
The draft proposal is open to public consultation until March 5 and applies to “housing rental businesses in the city that are engaged in the leasing or subletting business”.
The escrow accounts are for holding deposits only, and do not allow for overdrafts, unless otherwise stated.
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The proposed measures serve to “support” Beijing’s housing rental regulations, which came into effect in September 2022, according to Xu Yuejin, deputy director at the China Index Academy, a real estate research firm.
It will also help to standardise relevant tasks and protect the tenants’ rights and interests, he added.