Amid Reports of Rental Discounts, Should You Try to Renegotiate Your Lease?

In response to a combination of the COVID-19 crisis and dipping rent prices in certain parts of Beijing, a number of Beijingers report that they have been able to renegotiate apartment rental terms with their landlords. Below we'll outline whether you too stand a chance of pocketing a bit of extra cash in this financially uncertain time.

Renters seek relief

Some Beijing expats residing in Shuangjing and other Chaoyang District neighborhoods claim to have negotiated up to a 20 percent reduction in monthly rent. Some renters whose lease was about to expire claim that they were able to leverage the market by sending their landlord screenshots of lower offers for similar apartments in their area. However, data from Chinese real estate website Anjuke (open via mobile) suggests that this might not be an option for many, as few areas in Beijing have seen average rent prices drop more than five percent.

Whether the lease was set to expire or not, in most successful negotiations, renters mentioned a reduced salary or increased expenses due to the outbreak situation. Some landlords asked for proof of salary reduction, but others took renters’ word for it.

Human basis, not legal basis

If it sounds like renter’s issues are being resolved on a case-by-case basis, that is because they are. Though Chinese law provides protections for renters in case of force majeure, attorney Jason Tian of Sinoblawg tells the Beijinger that the COVID-19 outbreak does not necessarily constitute as such. "We cannot say that the crisis has any direct impact on the performance of the lease. Legally speaking, it’s not exactly black and white whether or not it can excuse the renter."

Tian says that force majeure may be more likely to apply in some commercial lease cases, such as where access to a property has been totally cut off, but for most home rentals, human nature may play a greater role than the law. "Most landlords are not necessarily afraid that their tenants might default, but on the other hand, as human beings, some will be willing to cut back rent prices or offer a grace period."

For that reason, if you are looking to renegotiate your lease, heed the following advice: Avoid threatening legal action, and instead appeal to the human side of your landlord. Tenants who successfully renegotiated said that they were open and honest about their situation. Simply tell your landlord the truth, and you may find yourself in a more affordable situation.

READ: Ziroom Refuses Rentals to Foreigners During the Pandemic: What to Do

Image: Helloquence (via Unsplash)