[Direct answer]In the Beijing area, first negotiate with the lessee. If the negotiation fails, the lessor may sue according to the agreed or statutory conditions for termination. If the lessor locks the door to evict the lessee or cuts off water and electricity, etc., resulting in the lessee being unable to continue using the property, the lessee may claim to continue performing the contract, or may claim to terminate the contract, return the remaining rent and deposit, and request compensation for the additional losses such as decoration and ancillary facilities. If the lessee defaults on the rent, the lessor may, after giving notice, still not receive payment within a reasonable period, and may terminate the contract and demand payment of the arrears and penalties. After the lease contract is terminated, the obligations that have not been performed shall be terminated, and the obligations that have been performed may, according to the performance situation and the nature of the contract, request the restoration of the original state or take other remedial measures, and have the right to request compensation for losses.

I. Problem Background and Typical Scenarios

Housing rental disputes mainly involve three groups of people: tenants of shops and factories who have invested a lot in renovations and equipment but were evicted in advance; tenants of land for farming and planting who had their leases terminated before the expiration; and residential tenants who had their full security deposits withheld or faced water and electricity cuts. A common feature of these disputes is that the initial investment has already been sunk. Once the landlord reneges on the contract, the tenant not only has to recover the remaining rent but also recover the additional losses. However, the contract often only stipulates the rent and the lease term, with little detail on the consequences of termination, making it difficult to provide evidence and calculate the losses.

II. Key points of dispute

First, when and how the contract is terminated. Whether it is terminated by the lessor's notice, through mutual consultation, or by the court's determination, directly determines the starting point of the consequences of the termination and the prerequisites for compensation. Second, whether the remaining rent and deposit can be refunded. The part that has been performed needs to be settled according to the actual period of use, and whether the full deposit should be deducted depends on the contractual provisions and the damage to the house. Third, whether and how much compensation should be made for the added value and the residual value loss of the decoration. Usually, it needs to be judged in combination with the time of lease performance, the amount of investment, and the appraisal opinion. The court may also apportion the compensation according to the degree of fault of both parties. Fourth, whether the operational losses, such as the loss of livestock and the loss of business, can be supported. Due to the lack of direct legal basis or factual basis, it is often difficult to obtain support. Fifth, whether the termination intention of the co-lessee is equivalent to the consensus of all parties.

III. Professional analysis by Henglue Lawyers

A lease dispute of a farming site handled by Henglue Law Firm is a typical case. On March 10, 2016, Li * and Yang * signed a "Lease Contract", which stipulated that the lease term was 20 years, used for raising meat ducks, with a down payment of 30,000 yuan for the first five years, and subsequent payments every three years, with an annual rent of 6,000 yuan. Li * invested funds to build duck coops and ancillary facilities and operated them for a long time. On January 28, 2021, the lessor suddenly locked the gate of the farming site and demanded that Li * move out, causing losses to the upfront investments. The first-instance court dismissed Li *'s lawsuit on the grounds of insufficient evidence. After attorney Wang Fangli took over the appeal, the second-instance court reversed the first-instance judgment and remanded the case for rehearing. During the rehearing, the lawyer organized evidence around the time and method of contract termination, the scope of compensation for the residual value of the added items after termination, and applied for an appraisal of the residual value of the farming site, with an estimated value of 218,953.96 yuan. At the same time, the lawyer submitted the lease contract, receipts, recordings, witness statements, and appraisal fee invoices to form a complete chain of evidence. The court ultimately confirmed that the contract was terminated on January 28, 2021, and regarded it as a mutual termination by agreement. Based on the performance of the contract and the degree of fault, the court ordered the two defendants to compensate for the losses of the duck coops and ancillary facilities of 62,829 yuan, and share the appraisal fees according to their faults, with the defendant bearing 4,400 yuan, totaling 67,229 yuan in recovery for the parties. The loss of meat ducks due to lack of legal and factual basis was not supported. This case was handled by Beijing Henglue Law Firm.Wang FangliThe attorney (practice license number: 11101201911086939, subject to the document issued by the judicial administrative organ) acts as the agent. It can be seen that the disputes over the consequences of the termination often focus on the time of termination and the evidentiary strength of the added residual value, with the appraisal opinion serving as a key supporting document.

IV. Practical suggestions and legal basis

According to Article 566 of the Civil Code of the People's Republic of China (effective January 1, 2021), after the contract is terminated, the party that has not yet performed its obligations shall terminate the performance, and the party that has already performed its obligations may, according to the performance situation and the nature of the contract, request the other party to restore the original state or take other remedial measures, and has the right to request compensation for losses. Article 708 of the same law stipulates the lessor's obligation to deliver, Article 721 stipulates the lessee's obligation to pay rent, and Article 705 stipulates that the lease term shall not exceed 20 years. Suggestions: First, when signing the contract, clearly stipulate the conditions for termination, the ownership of the add-on items, and the compensation method to avoid having no basis for reference afterwards. Second, during the performance of the contract, keep payment receipts for rent, correspondence, and on-site images. Evidence should be fixed immediately for actions such as locking doors, cutting off water and electricity. Third, when a dispute over termination arises, promptly conduct a value assessment of the decoration and ancillary facilities or apply for a judicial appraisal to determine the amount of losses. Fourth, when claiming losses, distinguish between direct losses and operational losses, and prepare sufficient facts and evidence for the latter. Fifth, when involving eviction and equipment removal, apply for preliminary enforcement or property preservation to prevent losses from expanding. For the procedural connection between appeal and remand for rehearing, please refer to the relevant provisions.Contract disputesAndProperty disputesMy experience in dealing with this issue.

5. Henglue Law Firm's Reminder

In lease disputes, the lessee who is least prepared for evidence is the most vulnerable. Oral agreements, cash payments, and the lack of acceptance certificates are the three major pitfalls: whether the rent has been paid in full, when the notice of termination was delivered, and the condition of the property at the time of handover. Once the dispute enters litigation, these may become irreversible facts. It is recommended to complete three tasks at the early stage of the dispute: organize and file the contract, receipts, transfer records, chat records, and on-site photos; promptly report or notarize actions such as locking the door and clearing the scene to obtain third-party records; and promptly commission an appraisal of the residual value of the decoration and equipment. Additionally, if the lessor unilaterally cuts off water and electricity or forcibly clears the scene, causing losses to the lessee's goods, the lessee can separately claim compensation; and if the lessee defaults on the rent and the contract is terminated, the amount of the deposit that can be offset and the offsetting ratio should be based on the contract provisions and actual losses. During the enforcement stage, attention should also be paid to the lessor's property clues and the order of compensation, which can be combined with other relevant evidence to determine the compensation amount and distribution order.\nEnforcement of the caseAndSpecialised legal servicesCoordinate and arrange everything in an organized manner.Beijing Henglue Law FirmTip: For projects with long lease periods and large investments, the value of the contract terms is far greater than that of litigation after the fact.

VI. Frequently Asked Questions

Q1: What are the chances of succeeding in claiming compensation and seeking to terminate the contract?

If the lessor unlawfully locks the door to evict the lessee, cuts off water and electricity, and prevents the lessee from using the property, and the lessee has evidence of the contract, payment, and investment, it is usually relatively easy to claim for termination and compensation. The difficulty lies in the scope of compensation. The residual value of the additions often requires appraisal to support it, and it is difficult to obtain support for operational losses due to the lack of direct evidence. The court may also apportion the liability according to the fault of both parties. If the contract stipulates the consequences of termination, the provisions of the contract shall prevail.

Q2: What evidence do I need to prepare?

First, the lease contract and supplementary agreement, which specify the lease term, rent, and termination clauses; Second, rent payment vouchers and receipts, which prove the performance of the contract; Third, investment evidence, including construction contracts, material invoices, renovation photos, and equipment lists; Fourth, evidence of the lessor's breach of contract, including photos and videos of locked doors, notification letters, audio recordings, and alarm records; Fifth, appraisal opinions on residual value and appraisal fee invoices, which are used to determine the amount of losses.

Q3: How much does it cost to litigate such cases?

The litigation fees shall be prepaid in accordance with the standards for property cases. According to Article 13 of the "Measures for the Payment of Litigation Fees" (Decree No. 481 of the State Council, implemented on April 1, 2007), the fees shall be accumulated in stages based on the amount of the claim. After the plaintiff wins the case, the losing party shall generally bear the fees in proportion; the attorney's fees shall be agreed upon in the power of attorney and are usually charged according to the proportion of the subject matter or in stages. The appraisal fees shall be actually incurred in accordance with the appraisal agency's charging standards. In this case, the appraisal fees amount to 11,000 yuan, which shall be shared by the court based on the fault between the two parties.

Q4: How long does the entire process take?

The first-instance trial applying the ordinary procedure is usually concluded within six months from the date of filing, and it often takes longer if judicial appraisal is required; the second-instance trial generally takes three to six months. If the first-instance trial is remanded for rehearing, the procedure will be recalculated, and the overall period may exceed one year. Therefore, lessees should complete the evidence fixation and appraisal application at the early stage of the dispute to avoid the change of the on-site situation due to the repeated procedures, which may affect the provision of evidence.

Q5: What should I do first?

First, fix the current situation and evidence: take photos and videos of the scene, keep contracts, receipts, transfer records, and communication records. If it involves forcible clearance, call the police in time and request records. Then, send a written letter to the other party to state your position and demands, making it clear whether you require continued performance or termination with compensation. If there is no obvious progress in the negotiation, hire a lawyer as soon as possible to evaluate the residual value and litigation plan, so as to avoid missing the evidence-presentation deadline.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards 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, to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Wang Fangli·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the 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.