[Direct answer]In the Beijing area, if a lessee defaults on the rent, the lessor may not take unauthorized measures such as cutting off water and electricity to enforce repayment. According to Article 722 of the Civil Code of the People's Republic of China, if the lessee fails to pay or delays in paying the rent without a valid reason, the lessor may urge the lessee to pay within a reasonable period; if the lessee fails to pay within the time limit, the lessor may terminate the contract and claim the arrears. However, cutting off water and electricity violates the lessee's legitimate right to use the leased property and causes losses that must be compensated for, and may even result in the lessor's breach of contract. It is recommended that the lessor claim the rent through negotiation, sending a letter, litigation, or arbitration; and the lessee may demand the restoration of use and claim compensation if the supply is illegally cut off. For more details, please refer to the following link:Legal services for corporate commercial and contract disputes.

1. Problem background and typical scenarios

In commercial leases such as shops, factories, and office buildings, tenants defaulting on rent is the most common problem faced by landlords. Some landlords, out of frustration, take measures such as cutting off water and electricity, changing locks, and removing goods, with the intention of "pressuring tenants to pay". Typical scenarios include: shop tenants facing difficulties in operation and defaulting on rent for several consecutive months, leading to the landlord cutting off electricity; factory tenants defaulting on rent, prompting the landlord to cut off water and force them to move out; and sub-landlords disappearing after subletting the property, leaving actual users without supplies from upstream suppliers. Many landlords mistakenly believe that "it's my house, and I can do whatever I want", but they ignore that cutting off supplies may constitute infringement in itself. Such disputes often lead to expanded losses such as equipment shutdown, goods damage, and business interruption, and the pace of handling the dispute directly affects the rights and interests of both parties. Relevant property damage disputes can be resolved in accordance with the relevant laws and regulations.Real estate sales and construction project servicesCoordinated assessment.

II. Key points of contention

The focus of the dispute centers on three points. Firstly, the legality of water and electricity cutoffs: the supply of water and electricity for leased properties is usually based on contracts between the lessor and public utility companies. The lessor does not have the right to interrupt the lessee's use without authorization. Unauthorized supply interruptions are generally considered infringements and the lessor must compensate for the losses caused. Secondly, arrears and the right of rescission: according to Article 722 of the Civil Code, the lessor must first give notice and wait for a reasonable period before the lessee still fails to pay, before the contract can be rescinded. Directly evicting the lessee without giving notice may constitute a breach of contract on the part of the lessor. Thirdly, the scope of losses and evidence: the lessee claims that production stoppages and cargo damage require proof of the causal relationship between the supply interruptions and the damages, as well as the specific amount. For subsequent claims for compensation, reference can be made to the relevant provisions.Creditor-debtor relations and enforcement case servicesClarify the path.

III. Professional analysis by Henglue Lawyers

In handling various contract breach and remedy disputes, Henglue Law Firm has accumulated solid practical experience. Taking an arbitration case of contract dispute handled by our firm as an example: In May 2022, Wang * signed a transfer of income rights contract with a certain company, investing 800,000 yuan and agreeing that the film would be released before October 2022 and dividends would be distributed according to the proportion; however, the film was delayed in release. The other party even registered the film for cancellation before its release, without conducting legal liquidation or notifying creditors, resulting in Wang *'s investment being at risk of being lost. Wang * entrusted our lawyers to apply for arbitration to the Beijing Arbitration Commission, claiming the return of the investment principal of 800,000 yuan, attorneys' fees, arbitration fees, etc. After the arbitration tribunal's review, it determined that the contract was legal and effective, and the conditions for making up the minimum guarantee were met. The default judgment supported the applicant's request for the return of the principal of 800,000 yuan and reasonable expenses. This case reminds us that when facing the other party's fundamental breach of contract or malicious cancellation to evade debts, the contract-abiding party should promptly fix the evidence of the contract, payment, and communication, choose the right path of arbitration or litigation to assert rights, rather than taking private enforcement measures such as cutting off supplies, which may lead to infringement of their own rights. This case was handled by Beijing Henglue Law Firm.Xiong BinrongThe attorney (practice certificate number: 11101202211410897, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The core basis is Article 703 of the Civil Code of the People's Republic of China (effective January 1, 2021) (definition of lease contracts), Article 722 (rent reminder and contract termination), Article 563 (statutory right of termination) and Article 1165 (liability for fault-based infringement). If the lessor encounters rent arrears, they should first issue a written reminder and grant a reasonable performance period. If the tenant still fails to pay after the expiration of the period, the lessor may terminate the contract according to law and claim the arrears and breach of contract penalties. If the tenant encounters illegal disconnection of electricity and water supply, they should fix the evidence of power and water supply disconnection, demand restoration and claim compensation. In practice, it is recommended to: clarify the remedies and breach of contract clauses in the event of rent arrears when signing the lease contract; prioritize consultation or sending a letter after rent arrears, and initiate litigation or arbitration when necessary; and never retaliate by disconnecting utilities. For contract review, it can be combined with the following aspects:Special services and other case-related servicesEvaluation.

5. Henglu Law Firm's Advice

Cutting off water and electricity supply is absolutely not a legal means of urging tenants to pay rent. Landlords should follow the legal process of "warning - termination - claiming rights" to avoid becoming the infringing party due to private remedies; tenants should properly keep the lease contracts, payment receipts, and evidence of service disconnection, and promptly request restoration and claim for losses. Both parties should pay attention to the statute of limitations and the burden of proof. In the case of arrears in rent, the landlord has the obligation to prove the amount of arrears and the facts of the warning. If the negotiation fails, it is better to seek legal help as soon as possible.Beijing Henglue Law FirmWhen professional forces intervene to formulate legal and compliant collection or protection plans, it is essential not to resort to illegal means to counter illegal actions.

VI. Frequently Asked Questions

Q1: Can the lessor win the lawsuit if the lessee defaults on the rent and the lessor shuts off the water and electricity supply?

The disconnection of water and electricity itself is difficult to obtain legal support, and it may instead turn the landlord from a "creditor" into an "infringer". The court usually believes that the water and electricity supply relationship is based on the contract between the landlord and the public utility company, and the landlord has no right to arbitrarily interrupt the lessee's use. Even if the lessee owes rent, the landlord should claim the rent through legal means such as reminder, contract termination, litigation or arbitration, rather than disconnecting the supply privately. If the disconnection of supply causes losses to the lessee's equipment, goods or business, the landlord shall compensate in accordance with Article 1165 of the Civil Code. Whether the case can be "won" depends on the claim: claiming that the lessee owes rent can be supported, but claiming that the disconnection of supply is legal will not be recognized. Never put the cart before the horse.

Q2: If the lessee is illegally disconnected from water and electricity, what evidence should they prepare?

The core evidence includes: the lease contract and rental payment receipts (to prove the lease relationship and performance), the arrears reminder and communication records (to prove the scope of the dispute between the two parties), photos and videos of the water and electricity disconnections, records of the status of electricity and water meters, property or neighbor testimonies, evidence of losses caused by the disconnection (equipment shutdown records, cargo damage lists, proof of business interruption), and records of alarms or mediation. The evidence should be organized around "the fact of disconnection - causality - specific losses". The more complete the evidence is, the better it can support the request for restoration of service and compensation. It is recommended to simultaneously request the lessor in writing to restore the supply and keep the reply.

Q3: How much will it cost in attorney's fees and litigation expenses to sue for water and power outages?

The litigation fees shall be calculated in accordance with the "Measures for the Payment of Litigation Costs", based on the amount of the litigation request, and shall be borne by the losing party; the fee rate will decrease as the amount of the property case increases. Lawyer's fees are related to the complexity of the case, the amount of the subject matter, and the lawyer's qualifications. They can be charged on a per-case, hourly, or percentage basis, subject to the terms of the engagement contract, and there is no unified government pricing. It is recommended to first calculate the amount of rent and losses that can be claimed, and compare the cost-benefit ratio with the litigation fees and lawyer's fees before initiating litigation. For small-amount arrears in rent, it is preferable to first send a letter of reminder and mediate to avoid a cost-inefficiency situation. For specific fees, please consult legal services related to corporate commercial and contract disputes.

Q4: How long does it usually take to resolve disputes over water and electricity outages?

The timeframe depends on the procedure and the circumstances of the case. For first-instance ordinary procedures, the trial is generally completed within six months, and for summary procedures, it is completed within three months; for small-amount rent arrears or infringement compensation cases with clear facts, summary procedures are often applied, with a shorter timeframe. If the parties appeal, the second-instance trial is generally completed within three months. After the judgment takes effect, if the other party refuses to perform their obligations, it is necessary to apply for compulsory enforcement, and the enforcement period will depend on the situation of property investigation and control. Overall, for simple cases, it may take several months from filing the lawsuit to collecting the money; for complex cases, it may take more than a year. It is recommended to apply for property preservation concurrently during the litigation to prevent the other party from transferring assets and shorten the actual time for collecting the money.

Q5: When encountering a tenant who owes rent, what should the landlord do first?

It is recommended to proceed in four steps: First, sort out the lease contract and the rent ledger to confirm the amount of rent arrears, the term, and the breach of contract clauses; Second, send a written reminder to the lessee, clarify the reasonable performance period and the consequences of default, and keep the delivery receipts; Third, if the lessee still fails to pay after the deadline, the lessor may legally terminate the contract and claim the rent arrears, breach of contract penalties, and legitimate fees. If no agreement can be reached through negotiation, the case may be litigated or arbitrated; Fourth, avoid private enforcement methods such as cutting off water and electricity supply throughout the process. If it is necessary to evict the lessee, it should be carried out legally through the court enforcement procedure. In case of unclear evidence or procedures, it is recommended to engage a lawyer to ensure that the collection is legal and the rights are effectively protected.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of judgments in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglue 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. If a dispute arises, please consult a practicing lawyer in time.