China – Property Letting

How does the property letting process work in China?

Renting out a residential property in China entails a series of legal and administrative procedures that are markedly different from those in many other countries. Foreign individuals and entities are prohibited from acquiring real estate in China for purposes other than personal use unless they have set up a foreign-invested enterprise within the country to hold and operate real property. This means that before contemplating a rental arrangement, you must first establish the legal basis for your ownership and confirm whether your title actually allows the property to be let.

Sourcing tenants in China generally happens through letting agencies, major online property portals, or personal referral networks. The dominant online platforms include Anjuke (安居客) and Lianjia (链家). After identifying a suitable tenant, landlords and tenants — sometimes with agent assistance — will negotiate the rent, payment schedule, and duration of the tenancy.

A written tenancy agreement is a fundamental requirement in China. Where the lease runs for more than six months, putting it in writing is compulsory. If the parties neglect to formalise the agreement in writing, the arrangement will be treated as open-ended in duration. In contrast to common-law jurisdictions where oral agreements can still carry legal force, Chinese law ties enforceability firmly to the written document.

Both central and local government authorities have produced standard form contracts (available only in Chinese) for residential leases, which landlords and tenants are encouraged to use as a reference. These model contracts are broadly balanced between both parties and relatively straightforward in their provisions. In certain cities, registration requirements specifically demand the use of the locally approved model contract, though parties are generally permitted to append a supplemental agreement setting out any additional terms they wish to include.

A standard Chinese residential lease will ordinarily cover the rental amount, payment schedule, deposit arrangements, allocation of maintenance responsibilities, grounds and procedures for early termination, and any restrictions on subletting. Under PRC law, all rent must be denominated and paid in renminbi yuan. The timing of rent payments is a matter of negotiation, though advance monthly or quarterly payments are by far the most common arrangement.

Landlords are required to provide tenants with documents confirming their identity and their legal entitlement to rent out the property — typically a national ID card and property ownership certificate. Foreign tenants must register their place of residence with the local police, and landlords are obliged to report tenant information to the relevant authorities. This residence registration obligation is a distinctive and non-negotiable feature of China’s rental framework.

What types of rental arrangements are available in China — long-term, short-term, and holiday lets?

Long-term residential tenancies — typically those lasting six months or longer — represent the most straightforward and thoroughly regulated form of rental arrangement in China. They are governed by the Civil Code of the People’s Republic of China together with a range of local housing regulations. Tenancy agreements must be registered with the local housing bureau or public security authority, and landlords have defined obligations regarding habitability standards, repairs, and the handling of security deposits.

Short-term residential rentals — including holiday lets offered through platform-based services — exist in a considerably more ambiguous regulatory space. Airbnb, operating in China under the name Aibiying (爱彼迎), is active in the market, alongside domestic competitors such as Tujia (途家). However, short-term holiday letting lacks the comprehensive national-level regulatory framework that governs long-term tenancies, and the rules that do apply vary considerably between cities.

Certain spaces are explicitly prohibited from being rented out as living quarters. Kitchens, bathrooms, balconies, basements, and garages may not be separately let as accommodation. Regulations also set minimum average living area standards per occupant, with specific thresholds determined by local authorities.

Several major municipalities — Beijing and Shanghai in particular — have in recent years moved to impose tighter controls on short-term and holiday lets, requiring hosts to secure approval and register with local authorities before operating. Online rental platforms are now obliged to verify the identity of landlords listing properties and to remove listings that are false or that violate applicable rules. Anyone contemplating a holiday-let model should consult directly with the housing bureau (住房和城乡建设局) of the relevant city, as requirements are highly location-specific and have been subject to ongoing change.

New national regulations that came into force on 15 September 2025 are intended to bring greater consistency to rental practices across the country, safeguard the legitimate interests of all parties involved, and promote stability in rental relationships. These rules more clearly delineate different categories of rental arrangement and impose stronger oversight on both platforms and agents.

What rental income can landlords expect in China, and how are rates set?

Rent levels are freely agreed between landlord and tenant, and China does not operate a centralised rent index system comparable to Germany’s Mietspiegel, which publishes binding local benchmarks. Instead, market forces predominantly drive pricing, although the government has introduced national measures to moderate sharp rent increases.

In August 2021, China introduced new national rent control measures, limiting annual rent increases to a maximum of 5% across all urban areas. These urban regions account for more than two-thirds of the country’s population and encompass the majority of China’s approximately 250 million renters. These measures govern increases applied during an ongoing tenancy; their enforcement and interpretation can vary at the local level.

There are no statutory restrictions on the rent level a landlord may set at the outset of a new tenancy following lease expiry. When negotiating terms for a renewed or fresh lease, it is common for both parties to reference prevailing market rents for comparable properties in the area.

Achievable rents and rental yields differ enormously depending on location. Tier-one cities — Beijing, Shanghai, Guangzhou, and Shenzhen — command significantly higher rents than smaller urban centres. For up-to-date market rental data, consult platforms such as Anjuke or Lianjia, or engage a local letting agent. The Ministry of Housing and Urban-Rural Development (MOHURD) also publishes housing market data and policy updates that can inform pricing decisions.

Do landlords need to provide a furnished or unfurnished property in China?

Furnished apartments are overwhelmingly the norm in China’s rental market, for both long and short-term lets. This means tenants must not only find a property in a suitable location but also feel comfortable with how it has been decorated and equipped. No national law requires landlords to furnish a rental property, but market convention strongly favours furnished lets — particularly in urban areas and the mid-to-upper rental segment.

A typical furnished rental in China will include beds, sofas, wardrobes, air conditioning units, a washing machine, and a refrigerator. Fully equipped kitchens with appliances such as microwaves, ovens, dishwashers, or instant hot water taps are uncommon. Refrigerators are frequently placed in hallways or living rooms rather than kitchens. Landlords targeting expatriate tenants may find that providing a more comprehensively fitted kitchen and Western-style furnishings can support a higher asking rent.

Where a property is let with furniture and appliances included, it is important to attach a detailed inventory to the tenancy agreement — recording each item, its condition at the start of the tenancy, and its agreed value — in order to prevent deposit disagreements when the tenant vacates. While there is no national minimum furnishing standard for residential rentals, local rules may specify basic habitability requirements covering plumbing, heating, and electrical systems.

Furnishing status does not ordinarily affect rental tax classification at the national level, though furnished properties may attract a higher assessed rental value for tax computation purposes. Landlords should seek confirmation of current local rules from a local tax adviser or the relevant municipal housing bureau.

Do you need a licence or registration to let a property in China?

Property owners must obtain permits before renting out their homes, and every tenancy and sub-tenancy must be registered with the appropriate local agency, such as the Beijing Municipal Public Security Bureau. This obligation applies equally to resident and non-resident landlords and carries no exemptions — failure to register can result in fines being levied against both landlord and tenant.

Local housing bureaus are now required to maintain dedicated housing service platforms that offer easier access to rental information, contract filing, and mechanisms for resolving complaints. These platforms serve as the primary channel through which landlords register tenancy agreements and discharge their reporting obligations. The specific system in use varies by city: in Beijing, for example, landlords use the municipal housing bureau’s dedicated online portal.

The registration process is in principle the same for foreign landlords, although the practical complexity is greater. Documentation typically required includes proof of property ownership (the Real Estate Ownership Certificate, 不动产权证书), identity documents, and the signed tenancy agreement. Since foreign entities and individuals may not acquire real estate in China for non-personal use without having established a foreign-invested enterprise, the legal basis for letting must be thoroughly verified before proceeding.

Short-term and holiday let arrangements may be subject to more demanding requirements, with some municipalities additionally requiring specific approval or registration with the local tourism or commerce authority beyond the standard housing bureau registration. Always verify the current requirements with your local housing bureau (住房和城乡建设局) or municipal public security bureau, as rules vary by city and have been updated by the national regulations that took effect in September 2025.

How do you obtain a landlord licence or register as a landlord in China?

Registration is administered at city level rather than nationally, so the exact steps involved will differ depending on where your property is located. The following reflects the general procedure observed in most major Chinese cities, based on guidance from housing authorities. Always confirm the current process, fees, and documentation requirements with the local housing bureau or the official municipal government website, as these details are subject to change.

1. Confirm your ownership status. Obtain your Real Estate Ownership Certificate (不动产权证书) — the title document issued by the local land and resources bureau. Foreign owners should ensure this document is fully in order before entering into any letting arrangement.
2. Obtain or confirm your letting permit. Many cities require landlords to apply for a rental permit (房屋出租许可证 or its local equivalent) from the housing management bureau. You will need to submit evidence of property ownership, your identity documents (a passport for foreign nationals), and details of the proposed rental use.
3. Prepare a compliant tenancy agreement. National and local authorities have produced model form contracts in Chinese for use in residential leases. In some cities, use of the official model contract is a precondition for registration. Where the local rules permit, a supplemental agreement setting out any additional terms may be attached.
4. Register the tenancy with the local housing bureau. Lodge the signed tenancy agreement, the ownership certificate, and identity documents for both parties with the local housing bureau’s platform — either via its online system or in person. Landlords who use the standardised contract and complete registration may qualify for tax rebates.
5. Report the tenant’s residence to the public security bureau. The landlord or tenant must attend the local public security station to register the tenant’s place of residence within 24 hours of the tenant moving in. For foreign tenants, this constitutes the mandatory police residence registration requirement.
6. Register for tax. Landlords receiving rental income must register with the local tax bureau (税务局) and obtain authorisation to issue a fapiao (official tax invoice, 发票). Individual landlords will need to attend the tax bureau in the district where the property is situated to arrange fapiao issuance.
7. Renew as required. Check with the local authority whether your rental permit is subject to annual renewal. Retain copies of all registration documentation for ongoing compliance purposes.

Housing bureau registration fees are typically nominal or waived for standard residential tenancies in most cities, though fapiao issuance and associated tax registration processes may involve additional costs. Verify current fee levels with the relevant authority, as these can change. The Ministry of Housing and Urban-Rural Development website provides national guidance, while city-specific procedures should be confirmed directly with local bureaux.

What are the rules around deposits in China?

In addition to rent, landlords in China typically require tenants to pay a refundable security deposit at the start of a residential lease, with the prevailing market norm being one to three months’ rent. China does not currently operate a centralised tenancy deposit protection scheme of the kind found in the UK or Ireland, where deposits must be lodged with an independent third-party custodian scheme.

While landlords are entitled to request a deposit, the contract must clearly specify the deposit amount, the conditions governing its return, and the circumstances in which deductions may be made. Unjustified or unreasonable deductions are prohibited, and landlords must return the deposit within the timeframe set out in the agreement. Tenants have the legal right to contest any deposit retention they believe is improper.

The requirement to document deposit terms precisely in the tenancy agreement is significant: vague or absent deposit provisions can expose landlords in subsequent disputes. Under the 2025 national housing rental regulations, landlords bear responsibility for defects relating to structure, plumbing, electrical systems, and gas installations that result from ordinary use — meaning deductions for fair wear and tear are not permitted.

Deposit disputes have historically been among the most frequent sources of conflict in the Chinese rental market, with certain landlords seeking to retain amounts for minor or ordinary wear. The 2025 regulations directly address this by reinforcing tenant protections and requiring thorough documentation. Landlords are strongly advised to carry out a detailed written check-in and check-out inspection — supported by photographic evidence — to establish a clear factual record for any deposit reconciliation at the end of the tenancy.

As of 2025, there is no nationally prescribed cap on the deposit amount for residential leases, though the established market convention of one to three months’ rent is widely observed. Check with the local housing bureau for any city-specific deposit caps or requirements that may be in force.

Who is responsible for maintenance and repairs in China?

Absent any agreement to the contrary, the landlord is responsible for maintaining and repairing the leased property. In practice, minor upkeep of shared areas and communal installations is generally handled by a property management company appointed by the landlord, with the associated costs covered through management fees.

Chinese landlord-tenant law requires landlords to carry out necessary repairs to the let premises, including addressing faults with appliances, plumbing, or electrical installations. This broadly mirrors the implied obligations placed on landlords under many civil law systems — such as those in France and Germany — where the landlord must both hand over and maintain the property in a habitable condition for the duration of the tenancy.

Landlords are required to ensure the property meets basic safety and living standards throughout the tenancy. Structural problems such as water ingress and electrical faults must be rectified promptly. Plumbing, heating, and other essential services must remain in working order. When repairs are needed, tenants are entitled to request them, and landlords are obliged to respond without undue delay.

Should a landlord fail to carry out necessary repairs within a reasonable time, tenants may undertake those repairs themselves and recover the cost from the landlord. This tenant self-help remedy has been reinforced by the 2025 regulations and is a particularly important consideration for landlords who are not based locally.

Tenants, for their part, are responsible for the day-to-day care of the property. They must not tamper with water, electricity, or gas installations, or make structural alterations without the landlord’s prior consent. Any subletting or assignment of the lease to a third party similarly requires advance approval from the landlord.

How are letting agents used in China, and what do they charge?

Rental agencies operate under close regulatory supervision in China, a position that has been reinforced by the 2025 national housing rental regulations. Large national agency networks — including Lianjia (链家/贝壳), 21st Century Real Estate (21世纪不动产), and Centaline (中原地产) — have a presence across major cities, alongside smaller local operators and online letting platforms.

Letting agents in China typically provide services covering property advertising, tenant sourcing and screening, tenancy agreement preparation, and in some cases ongoing property management. Foreign landlords who are unfamiliar with local language requirements and regulatory obligations are strongly advised to engage an agent. Agents can also manage the tenancy registration process and assist with fapiao (official tax invoice) arrangements.

Agency fees for residential lettings are not subject to national regulation in China in the way they are in, for example, the UK, where the Tenant Fees Act 2019 prohibits agents from charging tenants most categories of fee. In China, letting agency commissions for residential properties are typically equivalent to half a month’s to one full month’s rent, shared between landlord and tenant — though the precise split is negotiable and market practice varies. As of 2024, confirm prevailing fee levels with local agents and check whether your municipality has published any consumer guidance on regulated fee structures, as some cities have moved to introduce caps on agency charges in the rental market.

For ongoing property management — a service particularly valuable to non-resident landlords — property management companies typically charge a monthly fee in the region of 5–10% of monthly rental income, though this figure varies considerably according to city and the scope of services provided. Always verify current rates and any applicable regulated structures with the relevant local housing authority.

What taxes apply to rental income in China?

Foreign individuals earning rental income in China are liable for Individual Income Tax (IIT), VAT, Real Estate Tax, stamp duty, and a number of minor local levies. The overall tax position for foreign landlords in China therefore involves multiple overlapping obligations, making it essential to work with a qualified local tax adviser.

A flat rate of 20% is applied to rental income for Individual Income Tax purposes, unless the State Council has specifically reduced this rate. This is the headline IIT rate as of 2024. Allowable deductions — including expenditure on repairs and maintenance, property management fees, and depreciation of furniture and fittings — can reduce the taxable base, so the effective tax rate may in practice be lower than the headline figure.

Real Estate Tax (RET) is levied at 12% of annual rental income for properties rented out, with a reduced rate of 4% available for residential rentals. In Shanghai, rental-related taxes are combined into a consolidated rate of 5% on gross income. Local variations are material, and landlords should verify the rate applicable in the city where their property is situated with the local tax bureau.

Rental income derived from property located within China is treated as China-source income regardless of whether the landlord is resident in China or lives abroad. Foreign individuals who are not domiciled in China and who spend fewer than 183 days in China during a tax year are treated as non-residents for IIT purposes. Non-residents are taxed on their China-source income only — meaning non-resident foreign landlords remain fully liable for Chinese tax on rental income from Chinese property.

VAT may also apply to rental income, with residential lettings generally attracting a lower rate than commercial rental income. Confirm the current applicable rate with the State Taxation Administration (STA), China’s national revenue authority, which publishes current guidance on all taxes. Non-resident landlords should also investigate any double taxation agreement between their home country and China, which may reduce their overall tax exposure.

What are the rules around ending a tenancy or evicting a tenant in China?

Under national law, tenants do not have an automatic right to renew a lease at expiry, but they do hold a priority right to renew on terms no less favourable than those offered to any other prospective tenant. If a tenant wishes to secure a guaranteed right of renewal at lease end, this must be negotiated and expressly included in the tenancy agreement from the outset.

A landlord may bring the tenancy to an end if the tenant breaches any of their fundamental legal obligations. Equally, a tenant may terminate early if the landlord fails to meet their core obligations. The lease agreement may also specify additional contractual grounds upon which either party may exercise a right of termination.

When a landlord elects to end a tenancy, they must give the tenant adequate notice and allow a reasonable period in which to vacate. Eviction by forceful, threatening, or otherwise coercive means is expressly prohibited. While China’s rental framework has historically been regarded as relatively favourable to landlords in terms of practical leverage, the 2025 national regulations have introduced meaningful strengthening of tenant protections in connection with eviction procedures.

Where landlord and tenant cannot resolve a dispute by agreement, the Civil Code and general contract law provide the governing legal framework. Parties are encouraged to begin by attempting direct negotiation; if this fails, mediation through the local housing bureau is available and is generally quicker than litigation. Arbitration or court action may ultimately be pursued, with court-ordered eviction representing the final available remedy.

Compared to systems that are highly protective of tenants — such as the Netherlands, where court approval is required for most evictions and the statutory grounds are narrow — China’s framework offers landlords somewhat greater contractual flexibility. Nevertheless, the broader policy direction has been towards enhanced tenant protection, and landlords should ensure that all eviction-related procedures are carried out in full compliance with the current regulatory requirements.

What should expat landlords know about managing property remotely in China?

Running a rental property in China from overseas involves significant practical and legal hurdles. The language barrier, time differences, local bureaucratic requirements, and the obligation to issue a fapiao for rental transactions all combine to make remote property ownership demanding. Engaging a reputable local property management company or letting agent is strongly recommended for landlords who are not based in China.

A notarised power of attorney (委托书, wěituōshū) is essential when authorising a local representative — whether a professional agent, a trusted contact, or a management firm — to act on your behalf for tenancy registration, tax filings, and contract execution. If the power of attorney is executed outside China, it will generally need to be apostilled and translated into Chinese before Chinese authorities will accept it.

As rental income from Chinese property is treated as China-source income, non-resident landlords cannot escape Chinese tax obligations simply by living abroad. Your appointed representative may be required to act as a withholding agent for tax purposes; it is important that your management agreement explicitly addresses tax compliance responsibilities.

Transferring rental income out of China is subject to the country’s foreign exchange controls. Converting renminbi into a foreign currency and remitting it overseas requires compliance with regulations administered by the State Administration of Foreign Exchange (SAFE). Individual annual remittance allowances apply, and banks will require documentary evidence of the legitimate origin of funds — including tenancy contracts and tax payment receipts. Consult your bank and a qualified local financial adviser before planning to rely on rental income as a source of overseas funds.

Anti-money laundering rules and foreign exchange restrictions require meticulous documentation and rigorous compliance when moving funds internationally. Maintaining thorough records of all rental income received, taxes paid, and agency fees incurred is therefore not merely good administrative practice but a legal requirement for non-resident foreign landlords operating in China.

Frequently asked questions

Can a non-resident foreign national own and let property in China?

Foreign nationals must ordinarily have lived, worked, or studied in China for at least one year before they are eligible to purchase residential property. Foreign individuals are generally restricted to buying a single residential property, which must be used for their own accommodation — not as a rental or commercial asset. That said, many foreign nationals who already hold property in China do let it out. If you are considering renting out a property you already own, obtain specific legal advice on whether your title permits such use, as restrictions remain in force as of 2025.

Do I need a local agent to let my property in China?

There is no legal obligation to use a letting agent, but doing so is strongly advisable — particularly for non-resident landlords. Agents handle marketing, tenant screening, contract preparation, tenancy registration, and fapiao procedures. For landlords managing from abroad, a property management company holding full management authority under a power of attorney is the most practical arrangement. Verify current agency fee structures locally, as of 2025.

How much tax will I pay on rental income from a Chinese property?

A flat rate of 20% Individual Income Tax (IIT) applies to rental income as of 2024. Real Estate Tax applies at 4% of annual rental income for residential properties. VAT and minor local levies may also be due. The overall tax burden depends on applicable deductions and local rules. Always consult the State Taxation Administration and a qualified local tax adviser for current rates.

Is there a rent control regime in China?

In August 2021, China introduced national rent control measures limiting annual in-tenancy rent increases to a maximum of 5% across all urban areas. No statutory restriction applies to the rent set at the start of a fresh tenancy. Check with the local housing bureau whether your city has imposed any additional controls beyond the national rules.

What happens if my tenant refuses to leave at the end of a tenancy in China?

When terminating a tenancy, landlords must provide appropriate notice and allow a reasonable period for the tenant to vacate. If a tenant declines to leave, the landlord must pursue resolution through official channels — beginning with direct negotiation, followed by mediation via the local housing bureau, and ultimately through the courts if necessary. Eviction by force, intimidation, or other coercive means is expressly forbidden under Chinese law.

Can I let my property on Airbnb or similar short-term platforms in China?

Short-term rental platforms including Airbnb (Aibiying) and domestic alternatives such as Tujia are active in China, but short-term letting lacks comprehensive national regulation, and many cities have introduced their own registration requirements or restrictions. Online rental platforms are now required to verify the identity of landlords and to take down listings that are false or non-compliant. Consult the local housing bureau and tourism authority in your city for the current rules before listing a property on any short-term platform.

How do I transfer rental income out of China?

Rental income generated in China is governed by foreign exchange controls administered by the State Administration of Foreign Exchange (SAFE). Converting renminbi into a foreign currency and sending it abroad requires documentation proving the legitimate source of funds, including tenancy agreements and evidence of tax compliance. Annual individual remittance limits apply. Given the complexity and the frequency with which the rules are updated, consult your bank and a financial adviser before planning any international transfers.

What is a fapiao and why does it matter for landlords in China?

A fapiao (发票) is an official tax invoice issued through the Chinese tax authority system. Landlords are required to issue a fapiao to tenants or their employers in accordance with the lease agreement. Individual landlords must attend the tax bureau in the district where the property is located in order to arrange fapiao issuance. Many employers insist on receiving a fapiao for rental payments so that their employees can claim housing allowances. Landlords who are unable to issue fapiaos risk significantly narrowing their pool of prospective corporate tenants.