[Direct answer]The party responsible for compensation should be determined based on the cause of the damage: natural wear and tear due to normal use and aging of the items are borne by the lessor; damages caused by improper use or negligent storage by the lessee, their co-tenants, or visitors should be compensated by the lessee. This dividing line determines whether the deposit should be deducted and how much it can be deducted. The provisions of the Civil Code of the People's Republic of China (implemented on January 1, 2021) on the obligations of using, maintaining, and repairing leased items are the basic basis for judgment. The walls, floors, appliances, and furniture in the rental unit all have a service life. Minor traces left under normal use belong to the depreciation that the lessor should have anticipated and cannot be shifted to the lessee. However, cracks or malfunctions caused by water damage, impact, unauthorized modifications, or overuse should be attributed to the responsible party. The real challenge often lies not in the legal rules, but in the lack of records of the original condition of the items at the time of move-in and who caused the damage at the time of move-out. When handling the case, the delivery list, move-in photos, repair records, and repair quotes should be arranged chronologically. Comparing the current condition with the original state can replace verbal disputes, after which the amount of compensation can be discussed.

I. Problem Background and Typical Scenarios

The items in a rental house can be broadly divided into three categories, with different responsibilities assigned to each: 1. **The building itself and fixed fixtures**, such as walls, floors, doors, windows, and plumbing lines. 2. **Furniture and appliances provided with the rental**, like air conditioners, water heaters, washing machines, mattresses, and wardrobes. 3. **Items purchased by the tenant and easily removable**. Most disputes arise from discrepancies between the condition of these items at move-out and their condition at move-in. Formal rental agreements typically include a handover checklist detailing the brand, quantity, condition, and integrity of each item, along with photos or videos of the property on the move-in date. However, in practice, many handovers simply list "various furniture" and "complete appliances," or rely solely on verbal confirmation, setting the stage for conflicting interpretations later. Typical scenarios include: - The landlord deducting the entire security deposit or seeking additional compensation during move-out inspection, citing wall holes, mold stains, water-damaged flooring, cigarette burns on sofas, or unresponsive appliances. - The tenant arguing that these are natural wear and tear from years of use, pre-existing defects, or normal degradation that shouldn’t be their responsibility. - Other disputes arise over: - Damage caused by delayed repairs of water leaks; - Unauthorized modifications or drilling by tenants; - Damage caused by roommates or visitors; - Pet scratches; - Landlords delaying repairs while tenants pay for them upfront and later seeking reimbursement. These disputes often erupt during the move-out settlement, but the necessary evidence is scattered across four key stages: move-in, occupancy, repair requests, and inspection. Who holds the original records at these stages holds the advantage in resolving the conflict.

II. Key points of dispute

Disputes typically focus on five key issues. First, the boundary between normal wear and tear and damage: fading caused by normal use, minor scratches, and component aging fall under the lessor's responsibility for depreciation, while damage beyond reasonable use (e.g., cracks, stains, or missing parts) triggers compensation. The boundary between these two categories is often determined by the condition of the items at delivery and their usage history. Second, causality and timing of damage: the lessor must prove that the damage occurred during the lease period and was caused by the lessee, while the lessee may present evidence showing that the defects existed prior to occupancy or attribute them to inherent flaws or natural degradation. Third, scope and calculation of compensation: whether to use repair costs or replacement value, whether to deduct depreciation, and whether to claim rental losses during downtime or indirect costs like cleaning and removal. Disputes over amounts often require appraisals or expert evaluations. Fourth, notice and mitigation obligations: whether the lessee promptly reported water leaks or malfunctions, and whether the lessor repaired them in a timely manner. Fifth, security deposit deductions and counterclaims: whether the lessor has grounds to deduct from the deposit, and whether the lessee can counterclaim for overcharged amounts or reimbursement for repairs. Both parties' arguments typically focus on these five issues: the lessor claims the items were new at delivery and severely damaged at return, with clear repair quotes; the lessee argues for natural wear and tear, pre-existing defects, or inflated repair quotes/unauthorized repairs. The adjudicator's determination typically follows this order: first, verifying the lease contract and handover checklist; then comparing the condition of the items at occupancy and return; next, determining causality and fault; and finally, assessing whether the compensation amount and security deposit deductions are proportionate.

III. Professional analysis by Hengluo Law Firm

The most effective way to restore the facts is to fill in the evidence at four time points along the timeline and then determine the causality. Time point one is delivery: the handover list, moving-in photos, utility readings, and descriptions of the brand and condition of furniture and appliances, which are used to determine the initial state of the property when delivered by the landlord. Without this step, it will be difficult for the landlord to claim that the property was in good condition at the time of delivery. Time point two is during the tenancy: chat records and work orders for repairs, records of repair personnel visiting the property, notifications from the property management or landlord, and photos of water leaks and malfunctions, which are used to show when the problems occurred, who was aware of them first, and whether they were addressed promptly. Time point three is the inspection upon moving out: a joint inspection checklist, photos and videos of the inspection, and records of key return, which are used to document the objective state of the damage. Time point four is post-inspection pricing: repair quotes, invoices, replacement prices, and depreciation basis, with appraisals or causality assessments being requested if necessary. These four sets of materials form a coherent chain of evidence, making it clear for the court to follow the logical process: first confirming whether there is damage and its extent, then determining whether it is natural wear and tear or human-induced damage, followed by reviewing whether both parties provided timely notifications and mitigated damages, and finally determining compensation based on the degree of attributability and depreciation. The security deposit shall be deducted up to the amount determined, and any excess amount shall be refunded. There are several procedural steps to follow: promptly informing the other party in writing and retaining the delivery receipt after discovering a dispute to avoid the other party counterattacking on the grounds of unauthorized disposal; submitting a timeline-organized evidence list and description when filing a case, and supplementing all images and invoices within the evidentiary period; checking the lists and quotes submitted by the other party before the trial and providing cross-examination on the shooting time of the images, whether they are continuous, and the basis for the appraisal opinion; for disputes over large amounts, applying for a price appraisal, and appealing against the ruling within the statutory appeal period. For more information, please refer to the relevant legal documents. 还原事实最有效的办法，是沿时间轴把四个时点的证据补齐，再判断因果关系。时点一是交付：交接清单、入住影像、水电读数、家具家电的品牌型号与成色说明，用来锁定出租人交付时的初始状态，缺少这一环，出租人主张交付时完好就很难站住。时点二是居住期间：报修的聊天与工单、维修人员上门记录、物业或房东的通知、漏水与故障的照片，用来说明问题何时出现、谁先知情、是否及时处置。时点三是退租验收：双方共同验房的清单、退租照片视频、钥匙交回记录，用来固定损坏的客观表现。时点四是事后核价：维修报价单、发票、重置价格、使用年限与折旧依据，必要时申请评估或成因鉴定。四组材料首尾相扣，法院认定逻辑便清晰可循：先确认有无损坏及损坏程度，再判断是自然损耗还是人为致损，接着审查双方有无及时通知与减损，最后按可归责程度与折旧核定赔偿，押金抵扣以核定数额为限，超出部分应返还。程序上还有几个节点要踩准：发现争议后及时书面告知并保留送达凭证，避免对方以擅自处置为由反制；立案时提交按时间轴编排的证据目录与说明，举证期限内补齐全套影像与票据；庭前证据交换核对对方提交的清单与报价，庭审围绕影像的拍摄时间、是否连续、有无剪辑以及鉴定意见的依据发表质证意见；对数额分歧大的，可申请价格评估，对裁判不服再在法定上诉期内上诉。可参阅The Property Buying and Selling and Construction Projects section of this websiteA description of the procedures for house delivery and acceptance in China. By carefully comparing the status of the house, it's often possible to clarify the responsibilities without resorting to heated debates.

IV. Practical suggestions and legal basis

The main legal basis is derived from the "Civil Code of the People's Republic of China" (effective January 1, 2021), specifically the provisions on the obligations of using, maintaining, and repairing the leased property, as well as the liability for breach of contract in the Contract Chapter; and the provisions on fault and the scope of compensation for damages in the Tort Liability Chapter. The procedural and evidentiary rules are based on the "Civil Procedure Law of the People's Republic of China" (amended on December 24, 2021 and effective January 1, 2024), and the fees are governed by the "Method for Payment of Litigation Fees" (effective April 1, 2007). The "Urban Real Estate Management Law of the People's Republic of China" (amended on August 26, 2019) can be used to verify the ownership and legality of the leased property. There are six practical suggestions. First, supplement or strengthen the delivery list by listing each item's condition and attaching photos of the rental property. This serves as a baseline for distinguishing between natural wear and tear and intentional damage. Second, report any malfunctions or water leaks on the same day via a traceable method, specifying the location, symptoms, and time. This fulfills the obligation to notify and prevents losses from being attributed to delayed reporting. Third, conduct a joint inspection of the rental property upon termination, documenting the condition and signing the inspection report. Both parties should retain photos, videos, and proof of key return. Fourth, request detailed quotes and invoices for repairs proposed by the landlord. If the price significantly deviates from market rates or claims are based on replacement value, depreciation can be claimed based on the property's age. Fifth, pre-calculate the security deposit and deductible amounts. During negotiations, exclude items attributable to normal wear and tear, natural aging, or pre-existing defects. Sixth, for disputes involving large amounts or complex causes, apply for appraisal or causality assessment within the evidentiary deadline and verify whether the defendant is the landlord, a sublandlord, or a custodian agency. Compensation should aim to cover actual losses, and the security deposit cannot be withheld under the guise of damages. This serves as a fundamental criterion for calculation.

5. Henglu Law Firm's Reminder

There are three points that are easily overlooked. Firstly, benchmarks are more important than arguments: The handover list with descriptions and photos taken upon moving in is often more effective than ten explanations during the check-out process. Tenants should take photos of existing defects and confirm them in writing upon receiving the property, and landlords should avoid making general statements such as "all furniture and appliances are included". Secondly, timely notification is a mutual obligation: If tenants fail to report hidden problems and allow water leaks to soak the floor, they may be held responsible for the resulting losses. Similarly, if landlords delay repairs after receiving reports, tenants have the right to claim deductions for the necessary repair costs they have paid. Both parties should keep records of repair requests and responses. Thirdly, view depreciation and valuations rationally: Claiming full compensation for appliances that have been used for many years or attributing normal wear and tear to damage is usually difficult to achieve. Conversely, damages caused by improper use should not be dismissed as natural wear and tear. The security deposit is a guarantee, not a fine. During settlement, items should be matched and verified with corresponding evidence to ensure that no deductions are made incorrectly and no compensation is overlooked. After a dispute arises, it is more efficient to first collect materials from all four time points in chronological order before discussing the amount.

VI. Frequently Asked Questions

Q1: Are wall nail holes and the aging of home appliances considered normal wear and tear or damage?

They should be considered separately, as the legal consequences of the two are different. According to the provisions of the Civil Code of the People's Republic of China (effective January 1, 2021) that stipulate that the lessee shall use the leased property in accordance with the agreed method and shall not bear liability for compensation for normal wear and tear, minor nail holes on the wall for hanging pictures, and the performance degradation of home appliances with age generally fall under normal wear and tear, which shall be borne by the lessor and cannot be used as a basis for withholding the security deposit; while damages beyond reasonable use, such as drilling through pipelines, water-damaged floors, and home appliances that cannot be started due to external impacts, shall be attributable to the lessee for compensation. When making a judgment, three points should be considered: whether there are any special provisions in the contract, the initial condition recorded in the delivery list, and whether the damage exceeds the normal state of similar items during their service life.

Q2: How can we document the pre-damage condition of the house in the handover checklist and move-in photos?

The two materials must be used together to determine the benchmark. Either one alone is insufficient. The handover list should specify the brand, quantity, condition, and whether the items are intact for each item, and be signed by both parties. The footage of the inspection should be filmed continuously with time stamps, focusing on the walls, floors, and the appearance and functional status of the appliances. It would be better to test the appliances with electricity on the spot. According to the requirements of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024) regarding the authenticity of evidence and the review of electronic data, the footage must retain the original file without editing. If necessary, the shooting equipment and creation time can be verified in court.

Q3: Who should bear the assessment fee for claiming furniture depreciation compensation?

In principle, the party applying for an appraisal shall advance the relevant fees first, and the burden of payment shall ultimately be determined by the court. According to the "Measures for the Payment of Litigation Costs" (implemented on April 1, 2007), the fees for appraisal and evaluation in litigation shall be handled according to the rules that the party who claims shall advance the fees, the losing party shall bear the fees, or the fees shall be shared according to the proportion of liability. Therefore, if the lessor claims high compensation and applies for an appraisal, the lessor shall usually advance the fees first; if the lessee has objections to the amount and applies for a reassessment on his own, the applicant shall also advance the fees first. The court will decide in the judgment who shall ultimately bear the fees and the proportion of sharing according to whether the appraisal conclusion is accepted and the winning and losing ratio of the parties.

Q4: How many days is the evidentiary period for the first-instance compensation for property damage?

The number of days allowed for summary proceedings and ordinary proceedings varies. The starting point is usually no less than 15 days. The Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and implemented on January 1, 2024) and its judicial interpretations stipulate that the people's court shall specify the time limit for providing evidence. For cases applying the ordinary first-instance procedure, the time limit shall not be less than 15 days; for cases applying the summary procedure, the time limit may be less than 15 days, but generally reasonable preparation time shall be provided. Where the parties agree by consensus and with the court's permission, they may make separate arrangements; if it is truly difficult to provide evidence within the time limit, a written application for an extension may be made. Cases involving compensation for property damage typically require handover lists, images, quotes, and possible appraisals, which are generally more in line with the requirements of ordinary proceedings.

Q5: Should I take photos of the damaged furniture first or report the repair request first on the day I discover the damage?

Two things should be done simultaneously on the same day, with the order being to first fix the evidence and then report the repair request, which are not interchangeable. First, take continuous photos and videos of the damaged areas and preserve the original state. If necessary, invite the property management or co-residents to witness the process, which is to prevent the other party from claiming that the damage was expanded or caused by the tenant after the fact. Then, report the repair request or inform the landlord in a traceable manner in writing, stating the time of discovery, location, and phenomenon. According to the provisions of the Civil Code of the People's Republic of China (effective January 1, 2021) on the tenant's obligation to notify and the landlord's obligation to repair, this not only fulfills the obligations of notification and mitigation of losses, but also records whether the other party handled the matter in a timely manner. Only taking photos without reporting the repair request may be accused of allowing the loss to expand; only verbally reporting the repair request without leaving a trace will lack evidence.

This article is written based on the common judicial interpretations 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 current effective laws and regulations and publicly available 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 a timely manner.