[Direct answer]In the Beijing area, if the lessee carries out renovations or alterations to the leased property without the lessor's consent, the lessor may, in accordance with the law, request the lessee to restore the property to its original state or compensate for the losses. Article 715 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that the lessee, with the lessor's consent, may improve or add additional facilities to the leased property; if no consent is obtained, the lessor may request the lessee to restore the property to its original state or compensate for the losses. The core of the dispute lies in whether the renovations were carried out with consent and how to quantify the losses. It is recommended that the lessor first issue a written notice to the lessee and collect evidence before and after the renovations. If no agreement can be reached, the lessor may file a lawsuit within the three-year statute of limitations. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

I. Problem background and typical scenarios

In lease relationships, it's very common for lessees to carry out unauthorized renovations: they may knock down walls and change the layout of the leased shops, partition the space for group renting, illegally modify bathrooms and load-bearing structures, install additional facilities and equipment, or even only verbally mention the renovation beforehand without leaving any evidence of the lessor's consent. When the lease expires or the contract is terminated early, the lessor may find the property completely transformed upon taking back the premises, or third parties may claim compensation for renovation losses. Both parties may dispute whether the renovation was authorized, the ownership of the renovations, and the cost of restoration. The lessee may claim that the renovation was tacitly approved, that the lessor actually benefited from it, or demand compensation from the lessor for the residual value of the renovations. Such disputes may arise during the return of the premises, or simultaneously with breach of contract and compensation for property damage. For more information, please refer to the relevant rules.Legal services for real estate transactions and construction projects.

II. Key points of contention

The disputes typically revolve around five points. First, whether the renovation was approved: written consent, confirmation via electronic data such as WeChat, general authorization in the contract, and the lessor's tacit acknowledgement may all be deemed as approval. If the renovation was carried out entirely without authorization, the lessor may request restoration to the original state or compensation for damages. Second, the choice of remedies: deciding between restoration and compensation for damages depends on whether restoration is possible, the cost of restoration, and the proportion of the damage to the total loss. Third, how to value the renovation losses: for decoration items that have become fixtures, appraisals of their current value and residual value are often required, often with professional institutions providing opinions. Fourth, whether the lessor constitutes acquiescence or subsequent approval: if the lessor fails to raise objections for a long time and continues to collect rent, this may be deemed as tacit consent. Fifth, the boundary between normal wear and tear and unauthorized renovations. In the judicial practice of the Beijing area, courts generally use contractual provisions and communication records between the parties as the primary basis for determining whether approval has been granted.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm has extensive experience in handling disputes related to construction projects and real estate transactions, including disputes over changes in the scope of construction, quality defects, and rectification costs. A construction contract dispute case handled by Attorney Li Yonghui is particularly representative: On May 15, 2023, Company A and Company B signed a subcontracting agreement to undertake the HVAC engineering of a new commercial project in Shanghai, with a preliminary estimated total contract price of over 5.3 million yuan including taxes. By January 2025, Company A had completed an estimated value of 493.98 million yuan of the project, accounting for 96% of the total contract price. Company B only transferred 1.68 million yuan and offset the project payment with a house, first signing a "house-for-payment agreement" to offset 1.877 million yuan, and later agreeing to offset 1.4083 million yuan at a 75% discount. After repeated reminders failed, Company A entrusted Attorney Li Yonghui to sue Company B. Company B defended that the project had not undergone final acceptance, contained quality defects, had not been settled by the owner, and that the payment conditions had not been met, while claiming to deduct the third-party rectification costs. Attorney Li Yonghui argued that the commercial plaza in question had already opened and entered operation, and the HVAC engineering had been actually delivered and put into operation. According to Article 14 of the "Interpretation of the Supreme People's Court on Legal Issues in the Trials of Construction Contract Disputes" (effective January 1, 2021), this constituted completion, and the payment conditions had been satisfied. Three signed and stamped progress payment application forms could prove the project scope, and Company B also acknowledged in court that the project was 96% completed. Quality defects, add-on items, and rework losses should be dealt with together during the final settlement stage and cannot be used as a basis for deductions or delayed payments alone. The court accepted the lawyer's arguments and ruled that Company B should pay the remaining project payment of over 1.1 million yuan and the overdue interest. This case provides insights into disputes over leasing and decoration: Any claims involving changes in the scope of construction or decoration, or deductions of fees, must be based on contract provisions, confirmed records, and written communications. Unconfirmed unilateral changes and fee claims are unlikely to gain support. This case was handled by Beijing Henglue Law Firm.Li YonghuiThe attorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 715 of the Civil Code of the People's Republic of China (effective January 1, 2021), which stipulates that the lessee must obtain the lessor's consent before improving or adding new structures to the leased property. If the lessor does not consent, the lessee may request the restoration of the original state or compensation for losses; Article 188, which stipulates a three-year statute of limitations; and the Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Law in the Trials of Urban Housing Lease Contract Disputes (amended in December 2020), which regulates the removal of decoration materials, the handling of attached structures, and the sharing of losses. Action list: 1. When signing the contract, clarify the decoration terms and stipulate whether decoration is allowed, as well as the handling of decoration materials and the assumption of costs upon the expiration of the lease term; 2. Before the lessee undertakes decoration, obtain written consent from the lessor and retain communication records and construction confirmation forms; 3. If the lessor discovers unauthorized decoration, immediately take photos and videos to preserve the scene and, if necessary, commission an appraisal; 4. First, send a written notice demanding restoration or compensation. If no agreement is reached, file a lawsuit within the three-year statute of limitations. For cases involving the value of attached decoration, apply for appraisal and assessment. For more details, please refer to the attached document.Legal services for real estate transactions and construction projects.

5. Henglue Law Firm's Reminder

The outcome of disputes over unauthorized renovations often depends on two things: evidence of consent or lack thereof, and the basis for calculating losses. Landlords are advised to keep photos of the original state of the house when handing over the property and to inspect it promptly upon receipt. Tenants, on the other hand, should avoid starting renovations without written consent to avoid being put in a passive position when terminating the lease. Claims for restoration to the original state and compensation for losses must be raised within the three-year statute of limitations. The longer the delay, the harder it will be to assess the current value of the renovations. When handling similar cases in the Beijing area, it is recommended to seek legal assistance as soon as possible.Beijing Henglu Law FirmProfessional lawyers fix evidence and calculate losses to avoid losing rights due to procedural negligence.

VI. Frequently Asked Questions

Q1: If the tenant carries out unauthorized renovations, can the landlord demand that the property be restored to its original state?

It can be argued that whether support can be obtained depends on whether it can be proven that the decoration was done without consent and the extent of the losses. If the lessor retains the lease contract, communication records, and images of the delivery and return of the house, there is a higher likelihood of support for requests for restoration of the status quo or compensation for losses; if the lessee provides evidence to prove that the decoration was done with consent, or if the lessor has not raised objections for a long time and continued to collect rent, the request may be rejected or only partially supported. The conclusions of individual cases are subject to the evidence and the court's determination, and no lawyer can unilaterally guarantee victory or defeat.

Q2: What evidence should be prepared for disputes over unauthorized renovations?

The lessor needs to prepare: the lease contract and renovation terms, photos and videos of the house when it is handed over and returned, images of the lessee's renovation site, correspondence and chat records between the two parties, written notifications and delivery receipts for urging the lessee to restore the original state, and repair plans and cost assessment reports. The lessee, on the other hand, needs to prepare evidence of consent to the renovation, such as written confirmations, chat records, witness statements, as well as renovation contracts, payment receipts, and assessments of the current value of the renovation. The more complete the evidence is, the clearer the division of responsibilities will be.

Q3: How much does it cost to sue for unauthorized renovation?

The litigation fees shall be paid in accordance with the "Measures for the Payment of Litigation Fees" (Decree No. 481 of the State Council, implemented on April 1, 2007), which stipulates that the fees shall be paid in stages based on the amount of the litigation subject. In cases of partial victory, the fees shall be shared proportionally. For the assessment of the current value of the decoration or the cost of repair, an additional assessment fee shall be paid, the amount of which shall be determined by the assessment agency according to the complexity of the matter, without a unified government pricing. The attorney's fees shall be determined through consultation between the law firm and the client, and shall be charged based on the subject matter or the workload. The costs in the consultation and mediation stages are lower, so it is recommended to first assess the cost of restoration and the litigation expenses before deciding on the next step.

Q4: How long does it usually take to resolve disputes over unauthorized renovations?

If both parties agree, the performance of the contract can be completed at any time; if no agreement can be reached and a lawsuit is initiated, the case will be concluded within three months in the first-instance summary procedure and within six months in the ordinary procedure. If the case involves the appraisal and identification of the current value of the decoration and the cost of repair, the appraisal period will not be included in the time limit for trial, and the time limit will usually be extended by one to two months. The second-instance trial usually takes three months. Overall, cases with clear evidence can be concluded within a few months, while those requiring appraisal and identification usually take around half a year to complete. It is important to note the three-year statute of limitations and to initiate legal proceedings as soon as possible.

Q5: If you find that the tenant has carried out unauthorized renovations, what should you do first?

There are four steps to proceed: First, fix the evidence, preserve the contract, communication records, and images of the premises before and after the renovation, and, if necessary, notarize the scene; Second, send a written notice to the lessee to restore the original state or compensate for the losses within a specified period of time, and keep the delivery certificate; Third, if no agreement can be reached, entrust an appraisal to determine the cost of restoration or the current value of the renovation; Fourth, file a lawsuit within the three-year statute of limitations to request the restoration of the original state or compensation for the losses, and apply for an appraisal and evaluation concurrently during the litigation. If the amount involved is large or the lessee is uncontactable, it is recommended to entrust a professional lawyer to intervene as soon as possible.

The above answer is based on the judicial practice in Beijing. The judicial interpretations 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 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. If you encounter disputes, please consult a practicing lawyer in time.