Beijing Real Estate Association: Landlords Should Offer Grace Period if Lease Expires During Outbreak

In light of the coronavirus outbreak, complexities in Beijing’s apartment rental market was inevitable as renters deal with issues like unexpected income drops and inability to move once a lease has expired. In response, the Beijing Real Estate Agent Association has issued guidelines on how to deal with disputes that sprout from this special situation, Beijing Daily reports.

The association is not a government agency and its guidelines are not legally binding, but part of the reason for their issuance was to advise landlords and agents on an issue related to Beijing municipal law: The outbreak may qualify as force majeure, and leasers may therefore be legally required to make accommodations.

In particular, the guidelines state that in the case of a lessee who is unable to find a new apartment after a lease expires due to the outbreak situation, the leaser should provide a reasonable grace period.

While these guidelines may give renters a bit of ammunition in a quarrel with an unrelenting landlord, there are several caveats.

Firstly, just because a dispute has arisen during the outbreak period does not mean that force majeure automatically applies. At the very least, there would have to be a clear line of causation leading up to the dispute, and other factors, such as the purpose of the contract, should be considered as well, the guidelines advise.

Second, a renter cannot claim force majeure if the issue arose before the outbreak, for example, if the renter was already behind on rent payments.

Additionally, the guidelines suggest that all parties to a lease should communicate any anticipated issues as soon as possible and that parties should avoid direct contact with one another if possible. That is to say that communication is key to keeping cool, but it is best to stay connected over WeChat.

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