National-Level Housing Rental Regulations Issued to Strictly Regulate Fake Listings, Group Rentals, and Irregular Rent-to-Loan Practices

Premier Li Qiang recently signed a State Council decree promulgating the "Housing Rental Regulations" (hereinafter referred to as the "Regulations"), which will come into force on September 15, 2025.

Chang Peng’ao, Professor at the Law School of Peking University, pointed out that as the first administrative regulation specifically governing housing rentals in China, the Regulations further clarify the rights and obligations of rental parties on the basis of the Civil Code and the Urban Real Estate Administration Law. It provides necessary guidance and effective supervision for housing rental enterprises and other operating entities, offering robust institutional support and regulatory direction for promoting high-quality development of the rental market and accelerating the establishment of a dual-track housing system combining rental and ownership.

Cao Jingjing, General Manager of the Index Research Department of China Index Academy, stated that the draft for public consultation of the Regulations was issued in September 2020. Its official introduction now provides a clear institutional framework and behavioral guidelines for the housing rental market. This signifies further improvement in China’s rental housing management system and marks a new phase of legalization and standardization.

The Regulations consist of 7 chapters and 50 articles, constructing a comprehensive regulatory framework encompassing all entities in the housing rental market. It addresses the regulation of landlord and tenant activities, behavior of rental enterprises and intermediaries, enhancement of supervision, and accountability enforcement.

Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center, emphasized that rentals have become a critical component of housing supply and demand. In major cities, particularly first- and second-tier hotspots, renting is widely accepted and increasingly preferred, with renters sometimes outnumbering homebuyers. In Shenzhen, for example, the average age of first-time homebuyers in the first half of this year approached 38, and 10 million people are currently renting in urban village properties. The market has entered an era of rental and long-term leasing.
Li noted that while many laws and management measures govern the home sales market, there had been no national-level law regulating housing rentals, leading to widespread irregularities. The release of this regulation fills a critical gap.

Zhang Bo, Director of the 58 Anjuke Research Institute, stated that the implementation of the Regulations will significantly curb prevalent issues such as fake listings, rent gouging, and irregularities related to rental loans. He pointed out that the Regulations explicitly prohibit the release of false or misleading property information and require source management through property verification. Violations are subject to penalties, which will help reduce the occurrence of fake listings.

Article 8 of the Regulations stipulates that landlords and tenants must sign rental contracts using their real names. Landlords must file rental contracts with the property management department of the rental property’s location via a rental management service platform or through other designated means.

Cao believes that the contract filing system will help standardize the rental market, serve as the basis for tenants to access basic public services, and assist the government in monitoring market trends and informing policy. Through contract registration and dual protection of tenant rights, the rental market is expected to become more transparent and regulated, enhancing legal protections for both landlords and tenants.

Article 5 of the General Provisions adds that the state encourages households to lease their own housing and supports enterprises in revitalizing and converting old factories, commercial office spaces, and self-owned commercial housing for rental purposes. It also promotes multiple channels for increasing rental housing supply and supports the establishment of stable rental relationships that ensure equal access to public services.

Cao noted that with ongoing inventory clearance policies, some cities have seen progress in converting non-residential properties into rental housing, increasing supply and efficiently utilizing underperforming assets.

Zhang Bo believes that post-regulation, rental supply will adopt a dual-track model of "government-guaranteed + market-driven." Government-guaranteed rental housing will rapidly expand through acquisition of stock commercial properties and conversions. In the first half of 2025, major cities saw a 45% year-on-year increase in guaranteed rental housing supply. Meanwhile, market players will continue to develop long-term rental communities and activate stock assets.

However, analysts observed that the conversion of non-residential to rental use still faces challenges, such as high renovation costs, difficulties in land-use and property-purpose changes, and fire safety approvals. Relevant supporting policies still require improvement.

Article 7 of the Regulations sets specific requirements for rental properties. Non-residential spaces may not be leased for residential purposes, and maximum occupancy per room and minimum space per person must meet relevant standards. Article 10 specifies that, except where stipulated by the rental contract, landlords must not withhold security deposits without justified reasons.
Cao noted that clearly defining residential standards and deposit provisions can effectively safeguard tenant rights and reduce financial risk.

Article 29 introduces a rental price monitoring mechanism requiring municipal governments to periodically publish rent levels across different regions and property types. Cao stated that this mechanism enhances market transparency, allows authorities to stay informed, helps stabilize rental prices, and provides both parties with reliable reference points to promote a more equitable market.

Article 33 mandates that local housing authorities, in collaboration with other departments and industry associations, strengthen integrity systems in the rental sector. A credit evaluation system will be established for rental enterprises, intermediaries, and practitioners. Violations will be recorded in the national credit information sharing platform, with oversight based on credit classification.

Li Yujia commented that the Regulations establish end-to-end regulation across the rental industry. It covers all stakeholders including landlords, tenants, leasing enterprises, intermediaries, government regulators, and industry self-regulatory bodies, forming a closed-loop management system.

Cao remarked that the collection, disclosure, and sharing of credit information will reduce information asymmetry, allowing both parties to review each other’s history before signing contracts, thereby lowering the risk of defaults and fraud.

Article 14 of the Regulations stipulates that the state will improve policies to cultivate market-oriented and professional housing rental enterprises. Zhang Bo suggested that this signals a transition to a new stage characterized by institutional operations, quality upgrades, and financial support.

Currently, China’s rental industry remains under-institutionalized compared to developed countries. As of June 2025, the top 30 housing rental companies collectively operated 1.359 million units, representing only a small share of the market.

Analysts believe that with the support of market-oriented and professional policies, China’s long-term rental enterprises still have significant growth potential. Promoting the development of professional rental companies will enhance product and service quality and drive high-quality growth in the sector.

According to 58 Anjuke data, the rent-to-housing price ratio in key cities reached 2.17% in the first half of 2025. The return on investment for premium rental assets is now comparable to five-year fixed deposits, attracting long-term capital.

Zhang Bo believes that in the next five years, companies capable of integrating policy resources, optimizing financial structures, and improving operational efficiency will dominate the segment.
He added that future opportunities lie in revitalizing stock assets and leveraging big data and AI to empower the industry. By building digital platforms for property management, tenant matching, rent payments, and after-sales service, data analysis can optimize housing allocation and pricing strategies.

Multiple analysts concluded that the introduction of the Housing Rental Regulations marks the improvement of China’s rental housing management system. By standardizing leasing activities, strengthening supervision and credit systems, and promoting diversified supply, the Regulations will strongly support the high-quality development of the housing rental market and accelerate the formation of a dual-track housing system, creating a safer and more equitable living environment for millions of tenants.