[Direct answer]In the Beijing area, it is necessary to first clarify the legal relationship and then decide whether to protect the housing or pursue the money. If the sub-landlord transfers the lease with the landlord's consent, the sub-lessee will be protected by the lease contract during the remaining lease term; if the sub-landlord transfers the lease without the landlord's consent, the landlord may terminate the lease contract with the sub-landlord in accordance with Article 716, Paragraph 2 of the Civil Code of the People's Republic of China (effective January 1, 2021), and the tenant will need to vacate the premises and claim damages from the sub-landlord. When the sub-landlord defaults on the rent and faces termination, the sub-lessee may pay the outstanding rent and penalties on behalf of the sub-landlord to maintain the lease in accordance with Article 719, and the amount paid may be offset against the rent payable, and the excess may be recovered from the sub-landlord. If the landlord knows or should have known that there was no objection to the sub-lease within six months, it shall be deemed that the landlord agrees to the sub-lease (Article 718). After collecting the rent, if the sub-landlord goes missing or the amount is large, it may also involve contract fraud. Action guidance: First, check whether the landlord agrees, and then decide whether to protect the lease or seek compensation.

1. Problem background and typical scenarios

The landlord absconding is a frequent risk in urban renting: tenants pay monthly or annual rent with a discount and pay a year's rent and deposit in one go. By the third month, when the landlord comes to collect the house, they find that the signatory is not the property owner. There are also landlords who fail to receive rent on time, change the locks of the house, cut off water and electricity, and tenants and landlords are at loggerheads with each other. The longer the subletting chain is, the more concentrated the risks are: some sublandlords divide a house into several rooms and sublet them to different tenants, and some even operate multiple houses at the same time, using the rent collected later to fill the funding gap of the previous ones. Once the funding chain breaks down, they will lose contact.

II. Key points of contention

First, whether the subletting has been approved by the landlord. Written consent is the most reliable option. If the landlord has been aware of the subletting for a long time without raising objections, it can be deemed as consent according to the law, but evidence is needed to prove the time and manner of the landlord's awareness. Second, whether the landlord can directly reclaim the property. In the case of unapproved subletting, the landlord has the right to terminate the lease contract with the sublandlord and subsequently demand that the tenant vacate the premises. The tenant's defense options are limited. Third, whether the tenant can retain the lease. In the case of the sublandlord defaulting on the rent, paying the arrears and breach of contract penalties on behalf of the sublandlord is a practical means to retain possession, but the cost must be compared with the remaining lease term, the value of the security deposit, and the prepaid rent. Fourth, whether the losses can be recovered. If the sublandlord has assets under his/her name, compensation can be sought through litigation and preservation measures; if the sublandlord has gone missing and has no assets, even a successful lawsuit may be difficult to enforce, so determining whether a criminal case has been filed may be an important supplementary approach.

III. Professional analysis by Henglue Law Firm

From the practical experience of handling housing lease and sublease disputes at our firm, whether tenants can recover their losses almost entirely depends on what they did in the first few weeks after the incident. The first thing is to fix the evidence: the housing lease and sublease contracts, the lease certificates between the landlord and the sublandlord (if any), all payment records and receipts, chat records with the sublandlord and the landlord, and the results of the housing property registration inquiry. These materials determine whether to claim continued performance from the landlord or to claim refunds from the sublandlord in the future. The second thing is to judge the landlord's attitude. If the landlord is willing to continue collecting rent, tenants can directly establish a new lease relationship with the landlord, negotiate to offset the payments already made to the sublandlord as future rent, which is the lowest-cost solution. If the landlord insists on taking back the property, tenants need to evaluate which is more cost-effective: paying the arrears to secure the lease or vacating and seeking compensation. The third thing is to take prompt preservation or litigation measures. In cases where the sublandlord rents out the same property to multiple tenants and experiences a funding crisis, whoever sues first and seizes the property is more likely to recover actual payments. It should be noted that if the sublandlord has no actual ability to fulfill the contract but fraudulently creates housing listings, charges high rents or offers long-term rental discounts and then disappears, they may be suspected of contract fraud. Reporting the case to the police and initiating civil litigation can proceed concurrently, but the evidentiary requirements and document preparation methods differ between the two procedures. In cases involving large-scale long-term apartment disputes, it is also possible to leverage the coordination mechanisms of local housing authorities and industry associations to shorten the resolution period.

IV. Practical suggestions and legal basis

According to Articles 708, 716, 718, 719, and 563 and 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), the lessor shall deliver and maintain the leased property in accordance with the agreed purpose. The subletting must be approved by the lessor. If the lessor knows or should have known that there is no objection within six months of the subletting, it shall be deemed to have agreed. The lessee may pay the arrears in rent and the breach of contract penalties on behalf of the lessor to maintain the lease. Article 224 of the Criminal Law of the People's Republic of China (effective after the Amendment (XI) to the Criminal Law on March 1, 2021) stipulates the crime of contract fraud. Suggestions: First, verify the landlord's ID card and real estate ownership certificate before signing the contract, and ask the landlord to provide a written document agreeing to the subletting, or directly sign the contract with the property owner. Second, make payments as monthly or quarterly as possible, be cautious of the temptation of low annual payment, and the payment account should be consistent with the contract subject. Third, keep all payment receipts and communication records to avoid cash transactions. Fourth, contact the landlord immediately after the incident to confirm their attitude. If a settlement can be reached through negotiation, sign the settlement agreement as soon as possible. Fifth, initiate legal proceedings and apply for preservation measures in a timely manner if recovery is necessary. For the specific determination of contract validity and breach of contract liability, please refer to the relevant provisions. 依据《中华人民共和国民法典》第七百零八条、第七百一十六条、第七百一十八条、第七百一十九条、第五百六十三条、第五百七十七条(2021年1月1日施行),出租人应当交付并保持租赁物符合约定用途,转租须经出租人同意,出租人知道或者应当知道转租后六个月内未提出异议的,视为同意,承租人可以代付欠付的租金和违约金以维持租赁;《中华人民共和国刑法》第二百二十四条(2021年3月1日《刑法修正案(十一)》施行后现行有效)规定了合同诈骗罪。建议:第一,签约前核验房东身份证与不动产权证,并让房东出具同意转租的书面文件,或直接与产权人签约;第二,付款尽量按月或按季,警惕年付低价的诱惑,付款账户应与合同主体一致;第三,保留全部付款凭证与沟通记录,避免现金交易;第四,事发后第一时间联系房东确认态度,能协商抵充的尽快签和解;第五,需要追偿的及时起诉并申请保全。合同效力与违约责任的具体认定,可参考Real estate transactions and construction projects、Business and contract disputes in enterprisesPractical experience in the field of direction.

5. Henglu Law Firm's Reminder

The core conflict in the case of the second landlord absconding is about seizing the initiative. The landlord has legal grounds for taking over the property, and tenants also need to take action as soon as possible to protect their rights. The result of the stalemate between the two parties is often that tenants can't stay in the house and can't get their money back. Therefore, we usually suggest: first, calculate the value of the remaining lease period and the amount already paid, then decide whether to pay for the lease on behalf of the tenant or to vacate the property and claim compensation. Don't give up the most advantageous solution due to emotional factors. Additionally, even if the tenant wins the lawsuit, if the second landlord has no enforceable assets, the judgment may be difficult to implement. In this case, you can refer to the following methods for recovery.Creditor's rights and debts, and enforcement casesThe approach involves applying pressure through investigation and control, adding additional responsible parties, or pursuing criminal charges. Mass long-term rental disputes often involve multiple parties, and these parties can work together to resolve the issues.Specialised legal servicesAdvance the project as a whole.Beijing Henglue Law FirmIt is recommended that when renting a house, you should sign a direct contract with the property owner first, or specify the authorization to sublet and the landlord's contact information in the contract.

VI. Frequently Asked Questions

Q1: Can I successfully recover the losses from the sublandlord?

If the contractual relationship is clear, it's not difficult to win the lawsuit; the real challenge lies in enforcement. If the sub-landlord has property or can be traced to his/her salary, bank account, or vehicle, the possibility of recovering the payment is higher; if the sub-landlord has completely gone missing and has no property, it's necessary to evaluate the feasibility of reporting the case to the police and conducting multi-party negotiations.

Q2: What evidence do I need to prepare?

The sublease contract, the lease contract, the payment records and receipts, the deposit certificates, the chat and call records, the results of the inquiry into the house ownership registration, the written materials showing the landlord's claim of the lease relationship, and the identity information and contact details of the second landlord are the basic materials used in both litigation and reporting to the police.

Q3: What are the approximate costs of attorney fees and litigation fees?

The litigation fees shall be prepaid in stages according to the amount of the recovery. For cases with a relatively small amount, the small claims litigation procedure can be used, which is less expensive. The attorney's fees shall be negotiated according to the amount of the claim and the stage of the case. For cases involving preservation of evidence, it is necessary to provide a guarantee or purchase preservation liability insurance, and the expenses shall be calculated separately.

Q4: How long does the entire process take?

For small-amount cases, simplified or summary procedures are applicable, and judgments can generally be issued within one to three months. However, enforcement procedures involving preservation, public notice service, or the other party's uncontactability may take longer. If a criminal case is filed concurrently, the timeframe will be calculated separately, and it is recommended to plan for a timeframe of more than half a year.

Q5: What should I do first?

First, confirm whether the landlord agrees to the subletting and what the landlord plans to do next. At the same time, organize the contract and payment receipts. If the landlord is willing to renew the lease, negotiate the offset and sign a written agreement as soon as possible. If the landlord requires the tenant to vacate the premises, evaluate whether it is cost-effective to pay the arrears on behalf of the tenant and secure the lease, and file a lawsuit against the sub-landlord and apply for preservation measures as soon as possible.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication opinions 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 the purchase and sale of real estate·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.