[Direct answer]In the Beijing area, it is necessary to first clarify the contractual relationship and then decide how to respond. In the long-term rental apartment model, apartment companies usually first lease or entrust the management of landlords' houses as a whole, and then sublet them to tenants. According to Articles 716 and 719 of the Civil Code of the People's Republic of China (effective January 1, 2021), if the subletting is agreed to by the lessor and the sub-lessee performs its obligations according to the contract, its possession and use shall be protected by law. Disputes between the landlord and the apartment company cannot automatically lead to the eviction of tenants who have paid the rent. Tenants should keep the lease contract, payment receipts, and evidence of residence, respond in writing to the requirements for taking possession of the house, and, if necessary, claim for continued performance or a refund of the remaining payment. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

I. Problem background and typical scenarios

"The apartment company has gone bankrupt, and the landlord can't get the rent. They change the locks and evict the tenants" — the conflicts over property repossession after the collapse of long-term rental apartments have become a pain point in urban renting in recent years. Typical scenarios include: tenants paying the rent annually or applying for rental loans, but the apartment company defaults on the rent to the landlord; the landlord repossessing the property and cutting off water and electricity on the grounds of non-payment of the rent; the second-hand landlords absconding with the money and leaving the tenants with their security deposits and prepaid rents lost; the apartment company signing contracts under the guise of "delegated agency", and after the collapse, the landlords and tenants have conflicting views on the contractual relativity. Such disputes span multiple relationships including leasing, subleasing, and delegated agency. The handling approach can be referred to for reference.Legal services for real estate transactions and construction projects.

II. Key points of contention

The focus of the dispute centers on five points. Firstly, the legal relationship qualification: whether the relationship between the apartment company and the landlord is a housing lease, a power of attorney, or a cooperative operation, which directly determines whether the tenants can continue to live after the company goes bankrupt. Secondly, consent to and ratification of subleasing: if the subleasing is approved by the lessor, the contract between the landlord and the apartment company will generally not affect the tenants' right to occupy and use the property according to the subleasing contract; if it is not approved, the landlord may terminate the contract, and the tenants' rights will shift to claiming against the apartment company. Thirdly, the sublessee's defense of payment on behalf of the lessee: if the sublessee pays the arrears in rent and the breach of contract penalties on behalf of the lessee, he/she can resist the lessor's right to terminate the contract. Fourthly, the burden of loss: who to claim from for the unutilized rent, deposit, and rental loan balance depends on the contractual counterparty and the degree of fault. Fifthly, the legality of eviction methods: private remedies such as cutting off water and electricity, changing locks, and evicting tenants may constitute infringement, and the tenants can claim compensation.

III. Professional analysis by Henglue Lawyers

A housing sales contract dispute case handled by Attorney Bingrong Xiong, although not a lease dispute, its review logic of breach of contract liability and contract performance is of great reference significance to the disputes over the collapse of long-term rental apartments. In May 2008, Xu Xia and Liu Han signed a "Agreement", which stipulated that Liu Han would sell the house at No. 406 in Chaoyang District to Xu Xia for 400,000 yuan, and assist in the transfer of ownership after the property ownership certificate was issued and notarized; Xu Xia would pay the full purchase price of 400,000 yuan and move in. In 2021, the immovable property ownership certificate was issued and registered in Liu Han's name, but the two parties did not negotiate the transfer of ownership. Xu Xia sued Liu Han and his wife Zhao Qing, demanding that they assist in the transfer of ownership and pay a breach of contract penalty of 80,000 yuan, claiming that she had been repeatedly urged but met with excuses. Attorney Bingrong Xiong, on behalf of Liu Han, argued that he agreed to assist in the transfer of ownership, but had been willing to cooperate from the beginning, and had handed over the original property ownership certificate and actively cooperated after its issuance, so there was no breach of contract. The court held that the "Agreement" in the case was legal and effective, and there was no objection to the request for assistance in the transfer of ownership; regarding the breach of contract penalty, the agreement did not specify the time for the transfer of ownership, and Liu Han and Zhao Qing did not explicitly refuse to handle it. Xu Xia's claim for breach of contract liability lacked sufficient contractual and factual basis. Where the contract can still be performed, the court will prioritize ensuring its performance. After the collapse of long-term rental apartments, if the landlord directly takes back the house on the grounds of the apartment company's breach of contract, whether this act of taking back the house constitutes a breach of contract to the tenant also depends on the contractual provisions and evidence of performance. If the tenant wants to continue living, they should also fix the evidence of their own performance in accordance with the contract. This case was handled by Beijing Henglu Law Firm.Xiong BinrongThe lawyer (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 legal basis includes Article 716 of the Civil Code of the People's Republic of China (effective from January 1, 2021) (rules on subletting), Article 717 (limitations on the term of subletting), Article 719 (the sublessee's right to pay the rent against the right of termination), Article 725 (changes in ownership do not affect the lease), Article 577 (liability for breach of contract), and Article 1165 (liability for infringement); as well as the current effective regulations on housing rental management in various regions. Action list: 1. Secure the lease contract, payment receipts for rent and deposits, and the identity and contact information of the apartment company's staff; 2. Record the landlord's on-site communication and eviction actions, and provide a written response stating the position to continue fulfilling the contract; 3. Join other tenants in verifying the operating status of the apartment company and compiling a detailed list of losses; 4. Depending on the situation, assert the right to continue living, request a refund of the remaining rent and deposits, or file a complaint with regulatory authorities or report the case to the police. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

5. Henglu Law Firm's Advice

The difficulty of protecting rights in the collapse of long-term rental apartments lies in "who to claim from": if the apartment company is uncontactable or has entered bankruptcy proceedings, tenants' requests for refunds may face enforcement difficulties; for those who have taken out rental loans, they will also need to negotiate separately with the lending institutions about repayment disputes. Tenants should pay attention to two points: first, the risks of annual payments and rental loans are significantly higher than monthly payments. When signing the contract, they should carefully assess the qualifications of the apartment company and the mismatch between the lease term and their needs; second, they should maintain rationality in conflicts over taking possession of the house. Private remedies such as cutting off water and electricity and forcibly changing locks may make the landlord go from being in the right to being infringing. When handling similar cases in Beijing, it is recommended to bring the contract and payment receipts as soon as possible and seek legal assistance.Beijing Henglue Law FirmProfessional lawyers sort out legal relationships and identify the parties to whom claims should be made.

VI. Frequently Asked Questions

Q1: If a long-term rental apartment company goes bankrupt, do landlords have the right to evict tenants?

Not necessarily. If the sublessee has the lessor's consent and pays the rent as agreed, the lessor and the apartment company generally cannot directly evict the sublessee who has occupied and used the apartment as agreed; if the sublessee pays the arrears in rent on behalf of the lessor, they can also resist the lessor's right to terminate the lease. If the sublease is not approved by the lessor, or if the apartment company and the lessor are actually a principal-agent relationship, the rules of handling will be different, and the judgment needs to be based on the nature of the contract. The conclusions of individual cases are subject to the evidence and the judgment, and no lawyer can guarantee the outcome unilaterally.

Q2: What evidence do tenants need to prepare to protect their rights?

The core materials are divided into four categories: 1. **Contractual Evidence**: Lease contracts signed with the apartment company, deposit and rent payment receipts, and rental loan agreements. 2. **Relationship Evidence**: Authorization documents issued by the apartment company, images of the landlord's contract with the apartment company, and records of the apartment company's rental payments to the landlord. 3. **Performance Evidence**: Transfer records of on-time rent payments, actual utility payment records, and records of package receipt and delivery. 4. **Occupancy Evidence**: Audio and video recordings of landlord-tenant communication, images of lock changes and utility/electricity disconnections, and written notifications. The more complete the evidence, the clearer the rights boundaries will be.

Q3: How much does it cost to protect rights in this case, and how much can be recovered?

The litigation fees shall be paid in stages according to the amount of the litigation request, and shall be borne by the losing party. In the case of partial victory, the fees shall be shared proportionally. For cases settled through simplified procedures or mediation, the fees shall be collected at half the normal rate. The attorney's fees shall be determined through consultation between the law firm and the client, and there is no unified government pricing. The amount that can be recovered depends on the choice of the claim object: if the apartment company has assets, the claimant can demand the return of the remaining rent and deposit; if the contractual relationship supports continued residence, the claimant can demand the removal of obstacles to taking possession of the apartment. If the apartment company is uncontactable or bankrupt, the claim for repayment may face enforcement difficulties, and a rational assessment is needed.

Q4: How long does it usually take to resolve disputes in long-term rental apartments?

The duration of the process varies depending on the path taken. Negotiating with landlords and apartment companies can take just a few weeks; for first-instance litigation under the ordinary procedure, the case is typically concluded within six months, and under the summary procedure, it's within three months. However, if there are many tenants involved or the need to audit the apartment company's accounts, the process will be significantly prolonged. If the apartment company enters bankruptcy proceedings, the creditor's declaration and bankruptcy procedures will proceed in accordance with the timeframes stipulated by the Enterprise Bankruptcy Law, which will take even longer. It is recommended to fix evidence and declare rights as soon as possible to avoid missing key deadlines.

Q5: What's the first step to take when the landlord comes to collect the house?

Four steps to proceed: First, maintain rational communication, demonstrate that you have paid the rent to the apartment company as agreed, and request a written explanation of the basis for accepting the house; Second, record the entire process with audio and video, and preserve the visual evidence of accepting the house, changing the locks, and cutting off water and electricity; Third, provide a written response with the lease contract and payment receipts, clarifying whether to continue living or negotiate a transition plan; Fourth, join other tenants to fix evidence of the apartment company's unavailability, and evaluate the path to claim continued residence or a refund of the remaining balance. In case of intense conflicts, consult professional lawyers as soon as possible to formulate a plan.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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·Attorney Li Yonghui·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 you encounter disputes, please consult a practicing lawyer in time.