JJF (2017) No. 21

To people’s governments in all districts, committees, authorities and bureaus of the municipal government and all units concerned:

In order to accelerating the development of rental housing market in Beijing, standardize the management of rental housing, promote the establishment of the housing system encouraging both renting and purchasing, promote steady and healthy development in the real estate market, based on the provisions in Several Opinions of General Office of State Council on Accelerating the Cultivation and Development of Rental Housing Market (GBF (2016) No.39), the Notice on Accelerating the Development of Rental Housing Market in the Large and Medium-sized Cities with Net Inflow of Populations (JF (2017) No.153), and Several Provisions on Rental Housing Administration in Beijing (No. 231 Order of Municipal Government), the relevant matters are now notified as follows:

I. Strengthen rental housing management service and increase the supply of rental housing

(I) Further improve the system of rental housing management service

The municipal or the district housing and urban-rural development departments shall establish and improve the house leasing management agency, and enhance the supervision, management and service of the rental housing market. A group of public interest attorney for rental housing shall be established to provide the rental housing parties with legal aid service so as to safeguard their lawful rights and interests.

The relevant departments in the city and district including development and reform, education, public security, land planning, national health and family planning, industry and commerce shall, under their respective responsibilities, conduct the supervision, management and public service for the rental housing.

The people's governments in all districts shall strengthen the leadership of the supervision and management of rental housing market, and enhance the construction of management service stations in the communities and villages at the grass-roots level. Management service stations at the grass-roots level shall conduct daily inspection for the rental housing and timely report illegalities and irregularities to the related departments.

(II) Increase the supply of rental housing through multiple channel

The people’s government in all districts shall reinforce the safeguard of rental housing land based on the actual circumstances, and increase the supply of rental housing by way of constructing the rental housing at industrial parks and lands for collective construction according to the planning. Newly-built rental housing shall be equipped with the educational facilities; in case the population reaches a certain scale and there are no medical institutions within 15-minute walking distance, the medical institution shall be established according to the standard and planning. The employed person at industrial parks and surrounding areas shall be given priority to rent the newly-built rental housing so as to facilitate the job-housing balance.

Rental housing enterprises are encouraged to develop on a large-scale and specialized basis and are supported to collect the housing resources by way of several channels including leasing and purchasing; the individuals and units are supported to entrust their house to the rental housing enterprises for long-term management so as to meet the demand of multi-level rental housing.

(III) Expand the financial support of rental housing

The development-oriented financial institutions including banking financial institutions are encouraged to enhance the credit support to the rental housing projects under the premise of controllable risk and sustainable business, and provide the rental housing enterprises with long-term credit and financial solutions meeting operational characteristics (e.g. repayment of principal in installments) by measuring and calculating the cash flow of future rental income on a reasonable basis. The policies and measures such as re-finance and re-discount are taken to lead and support the financial institutions to provide the financial products and services for rental housing projects on an innovative basis.  The rental housing enterprises and financial institutions are encouraged to hedge the interest rate risk by using the interest rate derivatives.

The pilot work of public rental housing development loan continues to be promoted and the number of pilot participating banks will be increased properly. The rental housing enterprises or projects are recommended to National Association of Financial Market Institutional Investors (NAFMII) on an active basis, and such enterprises are supported to issue the enterprise bonds, corporate bonds, debt financing instruments of non-financial enterprises and other corporate credit-class bonds and assets-backed securities to expand direct financing channels. Preferential policies encouraging the development of real estate investment trusts (REITs) are to be formulated upon research, so as to coordinate the financial institutions and direct them to take actively part, and the rental housing enterprises are supported to finance by using the REITs.

II. Establish a monitoring platform for housing rental and provide convenient public services

(I) Establish the citywide monitoring platform for rental housing

Municipal department of housing and urban-rural development shall, in conjunction with relevant departments, organize and establish the monitoring platform for rental housing, based on the principle of openness and sharing. The monitoring platform for rental housing will provide backend data support for e-trade platforms by linking to online trading platforms, and e-trade platforms will provide the leasing parties with external services, including rental housing information release, online signing housing lease contract, application for rental housing registration, transaction capital supervision, information query of market subject credit and credit rating.

E-trade platforms shall meet the requirements of monitoring platform of rental housing, the subject of which may be the real estate brokerage agencies, rental housing enterprises, industrial organizations, business website operators etc. The specific requirements shall be made by the municipal department of housing and urban-rural development.

(II) Strengthen service and supervision by relying on the monitoring platform for rental housing

In case the registration records of rental housing have been made, the lessee, when make application for the matters of public service according to law, shall be not required to submit the supporting evidence in paper proving that it has the legal and stable residence in Beijing.

In case the lessee meets the conditions of monetary subsidy for public rental housing, it can apply for rental subsidies according to law, based on the information recorded in the monitoring platform for rental housing.

If the lessee has a resident household in Beijing and has no house, meeting the following conditions: continuously and separately rent in the same district and actually reside for more than 3 years and register in the monitoring platform for rental housing, and either party of the couple is legally employed in such district for more than 3 years, their school-age children may accept the compulsory education in such district.

If the lessee has non-resident household in Beijing, it may, according to law, apply for handling the procedures for its school-age children to accept the compulsory education in the district where the rental housing is located, based on the information recorded in the monitoring platform for rental housing and specific provisions of Beijing on the children of persons who has non-resident household in Beijing accepting the compulsory education.

The specific measures shall be established by the people's governments in all districts based on the actual situation.

The lessee is registered in Beijing, and rents public rental housing and directly-managed public house, it may apply for handling household registration and transfer procedures according to law, based on the information recorded in the monitoring platform for rental housing.

The lessee is not registered in Beijing, it may apply for handling residence card or obtaining residence permit according to law, based on the information recorded in the monitoring platform for rental housing.

The market subjects of rental housing may evaluate other related parties through e-trade platform, and the evaluation information may be recorded and disclosed in the monitoring platform for rental housing.

The relevant departments may provide the market subjects with different services, increase the contents of services and expand the scope of services, and implement the joint incentive for keeping faith and joint punishment for losing faith, based on the records in the monitoring platform for rental housing, accumulative comments of market subjects and auditing results.

III. Specify the code of conduct for rental housing and safeguard the legal rights and interests of concerned parties

(I) The lessor shall be the owner of the house or the legal users of the house, and ensure the house to be leased meets the following conditions:

1. The building structures and facilities meet the safety conditions in respect of building safety and fire fighting and meet the basic use functions;

2. The house the original planning of which is designated to living space, as the minimum rental unit, shall be not changed in the internal layout for the purpose of renting by division;

3. The space not suitable for living, such as kitchen, rest room, balcony, storeroom, shall not be rented for living;

4. The average living space per person shall not be less than the standard as stipulated in Beijing.

The lessor shall be responsible for the maintenance of facilities and equipment in the rental housing, and in case of any damage to the facilities and equipment in the rental housing which may affect the normal use, the lessor shall timely repair them, except as otherwise agreed by the concerned parties or for circumstances caused due to the improper use of the lessee.

(II) Standardize the conclusion of rental housing contract

1. Rental housing parties shall sign the lease contract in writing, which shall include the basic information of the parties, basic housing conditions, rental, rental term, rental purpose and liability for breach etc.

2. The parties are encouraged to use the model text of rental housing contract. The model text of rental housing contract shall be formulated by the municipal department of housing and urban-rural development in conjunction with the municipal industrial and commercial department.

3. The parties are encouraged to conclude and sign the long-term rental housing contract; and in case the parties concludes rental housing contract for more than 3 years and actually perform the same, such parties may be supported by relevant policies. If the rental housing enterprises rent their own houses, except as otherwise required by the lessee, the rental term shall not be less than 3 years.

(III) Enhance the management of registration and filing of rental housing

1. Within 3 days upon conclusion and signing of rental housing contract, the parties shall make registration and filing. In case of any change to the information of registration and filing, the change of registration and filing shall be timely made.

2. The registration and filing of rental housing shall be made by way of online filing. The leasing party may apply for making registration and filing of rental housing through any e-trade platform, and the online registration and filing services may be provided in the service window of district department of housing and urban-rural development and grass-roots management service station.

3. The registration and filing information of rental housing shall include rented house, identities of rental parties, rental term, rental and other information. The rental parties shall be liable to the authenticity, legality and validity of the information provided by them.

4. The e-trade platform shall check the authenticity, legality and validity of the application information for registration and filing of rental housing, and in case of being verified, such information shall be truthfully pushed to the monitoring platform of rental housing, and the monitoring platform of rental housing will register and record the same. The e-trade platform may provide the parties with the inspection service for the information of rental housing ownership and identities of concerned parties by relying on the monitoring platform of rental housing.

5. The grass-roots management service station shall regularly make random inspection for the actual living situation of rental housing, and shall note any discrepancy between the actual living conditions and the information recorded or filed for rental housing in the monitoring platform of the rental housing.

(IV) Standardize the collection and payment of rental and deposit

1. The rental parties shall reasonably specify the rental according to the market rent level at the district where the rented house is located, and during the contract period, the lessor shall not unilaterally increase the rental. The municipal department of housing and urban-rural development shall establish the release system of the housing rent, and timely publish the information, such as the rent level of actual transaction in the rental housing market.

2. The lessor shall collect rent on a monthly basis; if the lessee requests to pay the rent on a quarter or annual basis, the lessor may collect the rent on a quarter or annual basis.

3. If the lessor collects the deposit, it shall specify the amount of deposit, management or custody method and time of return in the contract. Except as otherwise agreed in the contract, within 3 working days upon termination of the contract, the lessor shall return the deposit to the lessee. In case of any objection to the return of deposit by the lessor, it shall assume the corresponding burden of proof.

(V) Safeguard the legal and stable residence of the lessee

1. During the rental period, the lessor shall not expel the lessee by way of violence, threat or other forces, and without the consent of the lessee, shall not arbitrarily enter into the rented house.

2. In case the lessor sells the rented house during the rental period, it shall notify the lessee 3 months in advance, and shall not affect the normal use of the lessee. The lessee shall enjoy the pre-emptive right under the same condition.

3. In case of the changes to the ownership of rented house due to trade, inheritance and bestowal during the rental period, the effectiveness of the lease contract shall not be affected.

4. If after the rental period is expired, the lessor does not continue to rent the house, it shall notify the lessee for more than 1 month in advance; in case of continuing to rent the same, under the same conditions, the original lessee shall enjoy the priority to rent the house, except for material breach of the contract occurring to the original lessee.

(VI) Standardize the conduct of the lessee to use the rented house

1. The lessee shall comply with relevant management provisions and shall not damage the public interest and legal rights and interests of neighbors. The corresponding liability caused due to the improper use of the lessee shall be borne by the lessee.

2. The lessee shall not sublet or co-lease the house, except that it is specified in the contract that the sublet or co-lease is allowed. If the lessee sublet or co-lease the house according to the contract, it shall make registration and filing of rental housing according to these measures. The sub-lessee shall not sublet the house again.

(VII)  Strengthen the investigation of illegal and irregular behaviors of the rental housing parties

If the rental parties violate the provisions in this Notice, such behavior shall be recoded and disclosed in the monitoring platform of rental housing, and shall be disposed by the relevant departments according to law.

IV. Strengthen the supervision of market subjects and improve the level of rental housing service

(I) Standardize the conduct of real estate brokerage services

1. The employed persons of real estate brokerage agency shall provide services under their real names. In case the real estate brokerage agency provides the parties with the rental brokerage service, it shall check the identity documents of parties concerned and ownership certificate of the rented house, conduct field investigation of the house, prepare the statement of housing condition, notify the concerned parties of relevant matters and sign the contract of real estate brokerage service.

The statement of housing condition and the contract of real estate brokerage service shall be signed by the specialized persons of real estate brokerage.

2. The real estate brokerage agency shall not provide rental brokerage service for the house not meeting the rental conditions.

3. The real estate brokerage agency shall reasonably charge fees based on the provided rental housing brokerage services and service standard. Prior to charging, the list of charges shall be given to the concerned parties, specifying charging items, charging standard, amount of charge and other matters in respect of charges, which shall be signed by the concerned parties. The real estate brokerage agency shall not charge any fee not indicated. If the real estate brokerage agency violates the provisions in this article, the competent price authority shall punish it according to law.

4. The real estate brokerage agency shall assist the rental housing parties in handling the registration and filing of the rental housing.

(II) Promote the standardized development of the rental housing enterprises

1. The business scope of the rental housing enterprise in the business license shall include “rental housing operation”, and the rental housing enterprise shall report the basic information of the agency and its employees and other information to the housing and urban-rural development department in the district where it is located for filing within 30 days from the date of its establishment; in case of any change to the said information, the rental housing enterprise shall make corresponding change of registration within 5 days upon occurrence of changes.

2. The rental housing enterprise shall assume the liability of the lessor and establish the perfect rental housing management procedures and service standards so as to ensure that the rented house meets the rental conditions and is suitable for living.

3. The rental housing enterprise, before signing the rental housing contract, shall check and verify the identity document of the lessee and truthfully record the relevant information.

4. The rental housing enterprises and the business entities of public rental housing and rental housing in the land for collective construction shall make registration and filing of rental housing within 3 days from the date in which the rental housing contract is signed. In case of any change to the information of lease contract, the change of registration and filing of rental housing shall be timely made.

(III) Enhance the protection of information of rental housing individuals

E-trade platform, the real estate brokerage agency, rental housing enterprises etc. shall keep the relevant information of rental parties obtained confidential and shall not use the same by violating requirements and stipulations in the laws and regulations.

(IV) Strengthen the supervision to the e-trade platform

The housing and urban-rural development departments shall, in conjunction with relevant departments, enhance the dynamic verification of e-trade platform; and if it is found that e-trade platform does not meet relevant conditions, there are illegalities and violations during the process of rental housing service, the municipal department of housing and urban-rural development may terminate the systematic connections between such platform and the monitoring platform of rental housing; in case of a suspected crime, it will be transferred to the public security department and be prosecuted for its criminal liability according to law.

V. The lease of housing legally constructed in the state-owned land in Beijing and rental housing meeting the housing and urban-rural development constructed in the land for collective construction shall be conducted according to this Notice. For the lease of public rental housing and directly-managed public house, if there are any special stipulations, the same shall be conduced according to such stipulations.

This Notice shall be implemented from October 31, 2017. The compulsory education, household registration and transfer and other detailed problems involved in the Notice shall be interpreted by corresponding functional departments.

Beijing Municipal Commission of Housing and Urban-rural Development, Beijing Municipal Commission of Development and Reform, Beijing Municipal Commission of Education, Beijing Municipal Public Security Bureau, Beijing Municipal Committee of Planning and Land and Resources Administration, Beijing Municipal Health and Family Planning Commission, Beijing Municipal Administration of Industry and Commerce, Business Administration Department of the People's Bank of China

September 28, 2017