[Direct answer]In the Beijing area, the process is to first issue a notice of default and then terminate the contract. According to the law, the "reasonable period" is the standard: if the lessee fails to pay or pays the rent late without a valid reason, the lessor shall first notify the lessee to pay within a reasonable period (in practice, it is usually around 15 days, and the contract shall prevail if there is an agreement). If the lessee still fails to pay after the expiration of the period, the lessor may terminate the contract. Commercial leases generally stipulate that "the contract can be terminated once the arrears exceed a certain number of days", and the lessor has the right to terminate the contract once the agreed period expires. After the contract is terminated, the lessor can claim the arrears in rent, the occupation and use fees, and the breach of contract damages. The notice of default is not a formality, but the trigger for the right to terminate the contract. If the lessor directly terminates the contract without issuing a notice of default, the lessor's position will be difficult to justify.

1. Problem background and typical scenarios

The shop tenant failed to pay the rent for two consecutive months. They said on WeChat, "I need some cash flow and will pay next week," but they delayed it for four weeks. The landlord, in a fit of anger, cut off the electricity and changed the locks, only to be counter-sued by the tenant for business losses. The process and methods of terminating the lease due to unpaid rent can easily turn from the tenant being in the right to both parties compensating each other if one step is taken wrongly.

II. Key points of contention

First, the grasp of the notice period and reasonable timeframes. Second, the application of the agreed termination clauses. Third, the boundaries of self-help remedies such as cutting off water and electricity and changing locks. Fourth, the settlement of expenses after the termination.

III. Professional analysis by Henglue Lawyers

Firstly, the framework of the notice procedure: If the lessee fails to pay the rent without a valid reason or delays in payment, the lessor may request the lessee to pay within a reasonable period; if the lessee fails to pay within the time limit, the lessor may terminate the contract. The "reasonable period" has no standard number of days. In practice, it is common to set it at around 15 days. If the contract explicitly stipulates (e.g., the lessee can be terminated if he fails to pay within 10 days after being notified and fails to pay within three days after being notified), the contract shall be executed according to the stipulations. The notice must be in writing (delivered by EMS, email, or WeChat with screenshots), stating the amount of arrears, the payment deadline, and the consequences of default. The notice is not only a procedural requirement but also a powerful tool to prove the lessee's breach of contract in future litigation. Secondly, the application of contractual termination clauses: Commercial lease contracts generally include a contractual termination clause stipulating that "if the lessee fails to pay the rent for more than X days, the lessor has the right to terminate the contract". When the condition is met, the lessor can directly exercise the right to terminate the contract, and the notice reaching the lessee constitutes the termination. However, the implementation of the clause is still subject to the soft constraints of good faith and proportionality. If the lessee defaults for a few days and has a legitimate defense (e.g., force majeure, epidemic control), the court may not support the termination. The clearer the contract is and the more undisputed the breach of contract is, the more stable the termination will be. Thirdly, the red line of self-help remedies: Cutting off water and electricity and changing locks to clear the premises are the most common and easiest-to-fail methods used by landlords. If the contract explicitly stipulates that the water and electricity supply can be cut off when the rent arrears reach a certain level, and the lessor executes the stipulations and provides written notice in advance, the risk can be controlled. If the supply is cut off without a stipulation or the premises are forcibly cleared, the lessee may counterclaim for losses in business operation and storage of goods, and the landlord will turn from a creditor to a defendant. The safe order is: notice (with a deadline) + termination notice + request for eviction. The on-site eviction should be left to the court to execute. Although the legal process is slow, the responsibility is clear. Fourthly, the settlement list after termination: After the termination takes effect, the lessee can claim the arrears in rent, the use fee for the occupied premises from the termination to the actual eviction (according to the original rent standard or the stipulated standard), the contractual penalty (which can be adjusted if it is excessive), and the recovery of the free rent period (if the contract stipulates that the free rent period during the mid-term termination shall be calculated according to the stipulations). The deposit shall be used to offset the arrears. For the treatment of the shop decoration, refer to the contract - the removable decoration shall be removed by the lessee himself, and the non-removable decoration shall form an attachment and be dealt with according to the stipulations or fair principles. The settlement list shall be itemized to avoid secondary disputes.

IV. Practical suggestions and legal basis

The first step is to issue a written notice of default and set a clear deadline upon the occurrence of rent arrears; the second step is to send a notice of termination and ensure its delivery upon the expiration of the deadline if the rent remains unpaid; the third step is to simultaneously prepare litigation materials to claim rent, occupancy fees, and breach of contract penalties; the fourth step is to apply for forced execution in accordance with the procedures to evict the tenant and avoid self-clearing the premises. Main legal basis: Articles 563, 565, 722, and 733 of the Civil Code of the People's Republic of China; relevant provisions of the Judicial Interpretation of the Supreme People's Court on the Trials of Urban Housing Lease Contract Disputes; specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Reminder

There are three key points to resolving rent arrears: 1. The 15-day notice period is a common standard, and the agreement must be in writing and delivered in person. 2. If the agreed upon termination clause is met, the landlord can exercise the right to terminate the lease immediately. The principle of good faith serves as a soft constraint in this regard. 3. Cutting off electricity and changing locks is a double-edged sword. Only through a formal eviction process can the situation be truly resolved. For disputes involving the resolution of rent arrears and eviction, you can seek legal assistance through the following channels:Business and contract disputes in enterprisesWe provide a comprehensive solution for services, which includes debt collection and enforcement that can be integrated together.Creditor's rights and debts, and enforcementFor reference, you can check the section related to corporate lease complianceIntellectual property protection and corporate lawFor any questions regarding difficult cases, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: How long can it take to terminate the contract?

If the tenant still fails to pay the rent within a reasonable period of time after being reminded (usually around 15 days in practice, with priority given to contractual provisions), the contract may be terminated; if the contract stipulates that the tenant may terminate the contract after X days of arrears in rent, the contract shall be terminated in accordance with the contractual provisions.

Q2: Does WeChat's reminder count as a legal notice?

Yes, but it's necessary to confirm that the recipient is the lessee himself or a person authorized to receive the document. For important notifications, it's recommended to use EMS and add WeChat to ensure there's a record of the delivery process.

Q3: Can I just cut off the power and replace the lock directly?

If there are clear provisions in the contract, the landlord can execute the contract according to the agreement and notify the tenant in advance; if there are no provisions, the landlord may cut off the supply of water and electricity and clear the premises without authorization. The tenant may file a counterclaim for losses and the risk is high.

Q4: What kind of compensation can I claim after the contract is terminated?

The unpaid rent, occupancy fees, and penalties shall be recovered in accordance with the agreement. The free rental period shall be recovered as agreed, and the deposit shall be refunded in excess or supplemented if insufficient after deduction.

Q5: Is it effective for tenants to use the defense of operating losses?

Generally, operating losses are commercial risks and do not constitute grounds for refusing to pay; however, reductions and extensions during periods of force majeure or policy control shall be handled in accordance with the rules.

The above answer is based on the judicial practice in Beijing. The adjudication standards 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. →Business and commercial legal services·Beijing Henglue 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.