[Direct answer]It needs to be paid. Property services target buildings and their ancillary facilities, as well as common areas. Whether the owner actually lives there does not affect the continuity of the services. According to Article 944 of the Civil Code of the People's Republic of China (effective January 1, 2021), owners shall pay property fees in accordance with the agreement and may not refuse to pay on the grounds of not receiving or not needing to receive relevant property services. If the owner still fails to pay after being reminded, the property company may initiate litigation or apply for arbitration, and may not use methods such as cutting off electricity and water supplies to urge payment. Some localities have phased preferential policies for vacant housing property fees. Whether these policies apply shall be subject to the local current policies and the contractual provisions. If the services have defects, the owner may separately claim rectification and compensation, but this does not automatically exempt the obligation to pay. For more details, please refer to the relevant provisions.Legal services for real estate transactions and construction projects.
1. Problem background and typical scenarios
Buying a house without renovating it, working in a different city for a long time, or leaving an investment property vacant—these are all common questions from homeowners regarding whether they need to pay property management fees. Many people argue that they don't receive any services, so why should they pay? However, property management companies insist that cleaning, landscaping, elevator maintenance, fire safety, and public facility upkeep never stop, even on days when no one is using the facilities. In Beijing, such disputes often arise in newly delivered residential communities and long-term vacant investment properties. Cases of property management companies suing homeowners to recover years of unpaid fees are not uncommon. It's important to note that vacancy is not a defense against liability. If there are actual deficiencies in the property management services, that's a separate line of defense. The two scenarios differ completely in their legal basis and consequences. For more details, please refer to the relevant regulations.Beijing Henglu Law FirmPractical articles in the real estate field.
II. Key points of contention
There are four main points of contention. Firstly, the identification of service recipients: Property services target the building itself and the common areas. Even if the house is vacant, cleaning, order maintenance, and facility maintenance still continue. Owners who refuse to pay on the grounds of not living in the property are usually not supported by the court. Secondly, regional differences in vacancy incentives: Some regions have implemented discounted property management fees for vacant houses, but the implementation standards, duration, and applicable scope vary from place to place. Most require owners to meet conditions such as reporting vacancies. Specific details should refer to the currently valid local policies. Thirdly, the distinction of defense grounds: Not living in the property is not a valid defense. However, defects such as the property management company failing to provide services as agreed, not disclosing fees, or having unclear accounts can serve as grounds for fee reductions or claims. Fourthly, the consequences of unpaid fees: late payment penalties, litigation fees, and the risk of forced enforcement.
III. Professional analysis by Henglue Lawyers
The obligation to pay property fees does not cease due to the house being vacant, and the identification of the party responsible for payment often becomes a crucial fact in real estate cases. Attorney Li Yonghui once represented a case involving a confirmation of contract invalidation arising from a house purchase under someone else's name: In September 2020, Company A needed a loan due to funding shortages of its affiliated company, so it used the name of employee Zhang * who had continuously paid social insurance for five years to sign the "Beijing City Second-hand Housing Sales Contract". Company A sold the house located at No. 2003 East Third Ring Road in Chaoyang District, Beijing (with a construction area of 262.05 square meters) to Zhang * for 7.3374 million yuan, with a down payment of 2.5774 million yuan and the remaining 4.4 million yuan to be paid by Zhang * through a mortgage and transferred to Company A's account. Later, Zhang * took away the property certificate and refused to cooperate with the transfer of ownership. Company A sued to confirm the contract invalidation and return the house, but the first-instance court dismissed the case due to insufficient evidence. Attorney Li Yonghui represented the appeal and reconstructed the evidence chain: the 4.4 million yuan loan was directly deposited into Company A's account, then transferred to the affiliated company, and the affiliated company used the property as collateral to repay the loan; the original property certificate and loan contract have long been held by Company A, and the property fees have always been paid by Company B; there are also supporting documents such as the agency agreement and receipts. The second-instance court determined that the sale was a collusive sham between the parties and revoked the first-instance judgment based on Article 146 of the Civil Code, ruling that the contract was invalid and the house should be registered back to Company A's name. In this case, the identification of the party responsible for paying property fees and the flow of funds together constitute important circumstantial evidence for identifying the true rights relationship. The case was handled by Beijing Henglu 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 944 of the Civil Code of the People's Republic of China (effective from January 1, 2021), which stipulates that owners shall pay property management fees as agreed and shall not refuse to pay on the grounds of not receiving services, and that property management companies shall not cut off water and electricity to urge payment; the provisions of the Property Management Regulation (amended in 2018) regarding owners' payment of property service fees; and the provisions of the Property Service Charging Management Measures (promulgated by the National Development and Reform Commission and the Ministry of Price in 2003 and effective from January 1, 2004) regarding the public disclosure of property service charges and the cost structure. Action list: First, pay fees in accordance with the agreed standards in the property service contract and keep the receipts; Second, for long-term vacant properties, understand the local preferential policies for vacant properties and the reporting requirements, and apply for them in accordance with the procedures if eligible; Third, for service defects, take photos, record them, and send a written letter to the property management company demanding rectification to form evidence; Fourth, if the property management company fails to publicly disclose its income and expenditure or the service quality is obviously unsatisfactory, file a complaint with the homeowners' committee, the local government, or the housing authority; Fifth, if sued for arrears, defend against the claim by providing evidence of service defects rather than simply claiming that the property is vacant. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.
5. Henglue Law Firm's Reminder
The risk of unpaid fees for vacant houses lies in their accumulation: years of property management fees and late payment penalties may far exceed the amount payable in a year, and may also affect housing transactions and credit records. If owners are dissatisfied with the service, the correct approach is to gather evidence, negotiate in writing, and seek compensation according to the law, rather than passively stopping payments. When courts in Beijing handle such cases, they usually make a comprehensive judgment based on the property management contract, evidence of actual services provided, and the fact of vacancy. A simple defense of vacancy is unlikely to gain support. If there are indeed service defects, the court will reduce the fees accordingly. In case of disputes, it is recommended to seek legal advice as soon as possible.Beijing Henglue Law FirmA professional lawyer.
VI. Frequently Asked Questions
Q1: If the house has been left empty all along, can I win the lawsuit if I don't pay the property management fee?
Generally, this is not allowed. Property services are aimed at buildings and their common areas. The vacancy of a house does not affect the continuous provision of services. According to Article 944 of the Civil Code, owners may not refuse to pay on the grounds that they have not received or do not need to receive relevant services. If individual owners use the vacancy as a defense and obtain a reduction or exemption, it is usually because the property services indeed have defects, or there are clear vacancy incentive policies in the local area and the owners apply for them according to the procedures. In individual cases where the property management fails to provide services for a long time and the accounts are chaotic, owners can claim a reduction, but they need to provide evidence of the service defects and the corresponding losses.
Q2: What materials do I need to prepare to prove that the house is vacant?
Evidence can be collected from four aspects: 1. Records of water, electricity, and gas consumption, as well as meter reading documents. It’s common to use consumption levels approaching zero as supporting evidence. 2. Photos and videos of the unoccupied or unrenovated property, which are more persuasive if they include time stamps. 3. Records of vacancy reporting, including written notifications and receipts submitted to the property management company. 4. Proof of residence elsewhere, such as residence permits, work certificates, and rental contracts. If claiming local vacancy incentives, additional documents may be required, including the application form and supporting materials specified by the policy. The more complete the evidence, the stronger the case will be during negotiations and litigation.
Q3: If the property management company sues to recover the unoccupied apartment's property management fees, who will bear the litigation costs?
The litigation fees are paid in accordance with the "Measures for the Payment of Litigation Fees", which are cumulatively paid in segments based on the amount of the litigation subject matter. The amount of the unpaid fees is usually not large, ranging from tens of yuan to hundreds of yuan per case. The plaintiff pays the fees in advance, and the losing party ultimately bears the responsibility. For partial victories, the fees are shared proportionally. The attorney's fees are determined through negotiation between the client and the law firm, and there is no unified government pricing. If the property owner wins the case, in addition to paying the arrears in property fees, the owner may also be required to bear the late payment penalties according to the contract. If the owner's defense based on service defects is partially successful, the fees and the amount of the arrears shall be shared according to the determination results.
Q4: For disputes over property fees for vacant houses, how long will it take to reach a resolution?
The property management company usually takes several months to urge payment. If the parties reach an agreement through negotiation or with the mediation of the local government or community, a conclusion will typically be reached within one to two months. For cases that are sued in court, the first-instance ordinary procedure will be completed within six months and the summary procedure within three months. Cases with clear facts of unpaid fees are often handled through the summary procedure, with judgments issued in as little as one or two months. The enforcement stage depends on the owner's performance. For unpaid fees spanning multiple years, the property management company needs to provide evidence of the contract and charging standards in stages, and the trial period will be extended accordingly.
Q5: If I receive a notice from the property management company demanding payment for an unoccupied apartment, what should I do first?
Four steps to proceed: First, check the charging standards, billing area, and arrears range of the property service contract to ensure the amounts are correct; Second, sort out the factual evidence of vacancy, and at the same time, understand the local preferential policies for vacant houses and the conditions for reporting; Third, if you believe the service has defects, send a written letter to the property management company and list the specific problems, and keep the photos, records, and receipts; Fourth, if no agreement can be reached, ask the homeowners' committee or the local government to intervene in the mediation; if you have been sued, respond to the lawsuit in a timely manner and provide evidence. Never use stopping payment as the only means.
The above answer is based on the judicial practice in Beijing. 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, so as 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 open 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.