[Direct answer]In the Beijing area, the income generated from the use of the common areas of the owners, after deducting reasonable costs, belongs to all owners. According to Article 282 of the Civil Code of the People's Republic of China (effective from January 1, 2021), the income generated by the construction units, property service enterprises, or other managers from the use of the owners' common areas belongs to the owners after deducting reasonable costs. Elevators, corridors, external walls, and public spaces in residential communities belong to the owners' common areas. Accordingly, the advertising revenue generated from these areas should belong to all owners after deducting reasonable costs, and the revenue should be primarily used to supplement the special maintenance funds or be used in accordance with the owners' joint decisions. The aim of this action is to require property management companies to disclose their income accounts and claim the owners' shared income in accordance with the law.
1. Problem background and typical scenarios
Advertising spaces can be seen everywhere in elevators, unit lobbies, and near gate barriers, generating considerable revenue over the course of a year. But who exactly pockets this money? Many owners are unaware of this, and property management companies rarely proactively disclose the information. The ownership and use of advertising revenue is an overlooked yet crucial aspect of owners' shared rights and interests.
II. Key points of dispute
First, which parts belong to the owners and can be used as advertising carriers. Second, the scope and standards for deducting "reasonable costs" from the income. Third, the use of the income and the decision-making process. Fourth, how owners can inquire about and claim the shared income. Fifth, the responsibilities of property managers who operate the property privately and refuse to disclose the information.
III. Professional analysis by Henglue Lawyers
The ownership of elevator advertising revenue depends on whether the carrier belongs to the owners' common areas. According to Article 272 of the Civil Code of the People's Republic of China, owners enjoy the rights of ownership and co-management over the common areas beyond their exclusive parts of the building; Article 282 further clarifies that the income generated from the use of common areas belongs to the owners after deducting reasonable costs. Elevators, external walls, public corridors, lobbies, and public spaces in residential communities generally belong to the owners' common areas, and the advertising revenue therefrom should belong to all owners. When handling such disputes, Henglue Law Firm typically first clarifies the ownership of the carrier and the operating entity, verifies the advertising contract, placement location, and revenue amount; then reviews whether the "reasonable costs" deducted by the property management company are justified and directly related to the operation of the advertisement, to prevent the erosion of owners' revenue under the guise of management fees. The use of the revenue should generally be decided by the owners collectively, with priority given to replenishing special maintenance funds or using it for the management and repair of common areas. If the property management refuses to disclose the revenue accounts, owners can demand the provision of the accounts and, if necessary, assert their rights through owners' meetings or owners' committees, or report the matter to the competent authorities; if no agreement can be reached, legal action can be initiated. In practice, individual owners should pay attention to the issues of litigation subject and procedure when making claims. For revenue involving the common areas of all owners, it is more efficient to make claims through owners' meetings or owners' committees collectively. Beijing has also gradually incorporated the disclosure and use of operating revenue from common areas into standardized supervision.
IV. Practical suggestions and legal basis
Action List: 1. Verify whether the advertising placement areas belong to common areas and check the income amount and contractual terms; 2. Require the property management company to publicly disclose the income accounts and cost breakdowns; 3. Review the reasonableness and direct relevance of the "reasonable costs"; 4. Clarify the use of the income after obtaining the joint decision of the owners, with priority given to replenishing the special maintenance funds; 5. If no agreement can be reached, proceed to claim through the owners' assembly or homeowners' committee, or file a lawsuit according to law. Main legal basis: Articles 271, 272, and 282 of the Civil Code of the People's Republic of China (effective from January 1, 2021); Provisions on the management of common areas in the Property Management Regulation (amended in 2018); Specific applications shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglue Law Firm's Reminder
There are three key points regarding elevator advertisement revenue: the revenue from common areas belongs to the owners, and only reasonable costs can be deducted; the use of the revenue must be decided by all owners; if the accounts are not properly kept, owners can demand public disclosure and assert their rights. For issues related to real estate and community governance, owners can seek assistance through legal channels.Property sales and construction projectsThe service obtains a comprehensive solution, which involves the integration of specialized services and community disputesSpecial servicesFor reference, please refer to the section regarding advertising contractsBusiness and contract disputes in enterprisesFor inquiries regarding the recovery of earnings, please refer to the relevant columnCreditor's rights and debts, and enforcementFor those interested in corporate law, you can learn more about our teamIntellectual property and corporate lawFor any questions or difficulties, please contact us via the column's contact information.Special servicesTeam.
VI. Frequently Asked Questions
Q1: Can the owners share in the money earned from elevator advertisements each year?
After deducting reasonable costs, the income belongs to all owners and is usually used to supplement special maintenance funds or used in accordance with the owners' joint decisions. It may not be distributed directly, but owners have the right to know and decide on its use.
Q2: What documents do I need to check the advertising revenue accounts?
The owners have the right to require the property management company to disclose the operating income of the common areas; they can review the advertising contracts, income and expenditure details, and cost vouchers. If the property management company refuses to provide these documents, the owners can file a claim through the homeowners' committee or through legal litigation.
Q3: How much does it cost to claim this income?
Generally, there will be no litigation fees incurred when claiming through the owners' assembly or the homeowners' committee; if a lawsuit is filed, the fees shall be paid according to the standards for property-related cases, which will vary depending on the amount of the dispute, and the specific fees will be determined by the court.
Q4: How long does it take from the time the disclosure is required to the time the earnings are received?
The consultation and public announcement stages may be relatively short; entering litigation follows a trial cycle, which usually lasts several months; it is recommended to first request a public announcement in writing and keep the proof of service.
Q5: The property management company said that all the income is used for the maintenance of the residential community. Is that reasonable?
It depends on whether the purpose of the use has been jointly decided by the owners, whether the cost is reasonable, and whether it is directly related to the operation. If the owner disposes of the funds without obtaining the owners' approval, the owners may claim that the income belongs to the joint ownership and demand that the accounts be made public.
This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.