[Direct answer]It is illegal and often violates three provisions at the same time. Firstly, if the lessee transfers or renovates the leased property without the lessor's consent, the lessor may terminate the lease contract with the sub-lessee and claim damages in accordance with Article 716 of the Civil Code of the People's Republic of China (effective from January 1, 2021). Secondly, the leased housing shall be rented out in the form of the original designed rooms as the minimum leasing unit, and it is not allowed to divide and build it for renting out, and the per capita living area shall not be lower than the prescribed standard (Article 8 of the Measures for the Administration of Leasing of Commercial Housing, effective from February 1, 2011). In Beijing, the "Regulations on Housing Leasing in Beijing" (effective from September 1, 2022) specifically prohibits changing the internal structure of the house for sub-leasing and forms of group leasing such as renting by bed. Thirdly, if the leased property endangers safety or health, the lessee may terminate the contract at any time in accordance with Article 731 of the Civil Code and demand the return of the deposit and rent. Action guidance: First, fix the evidence of partition and group leasing, then file a complaint with the housing and urban management department and the fire department, and if necessary, sue to terminate the contract and claim compensation.

1. Problem background and typical scenarios

Renting out entire units at low prices and then partitioning them for subletting is a common phenomenon in urban villages and old residential communities. After moving in, tenants often find that the sound insulation is extremely poor, fire exits are blocked, the number of people living in the unit far exceeds the standard, and it's difficult to get their deposits back when they leave. Meanwhile, neighbors are constantly troubled by noise, overloaded electricity usage, and fire safety hazards. Who is violating the law, who is responsible, and whether the rent deposits can be refunded are common questions among tenants and neighbors. In Beijing, housing rental management is becoming increasingly strict, and complaints related to partitioning and group renting have remained high for a long time.

II. Key points of contention

Firstly, whether the subletting has been approved in writing by the lessor is the key to distinguishing between breach of contract and legal subletting. Secondly, the administrative determination standard for partitioned group renting violates the housing lease management regulations. Thirdly, who owns the right to terminate the subletting contract and the effectiveness of the subletting contract. Fourthly, how to divide the scope of the return of the deposit and the paid rent and the compensation for losses.

III. Professional analysis by Henglue Law Firm

These types of disputes can be attributed to three categories. The first category is the subleasing line: Article 716 of the Civil Code stipulates that "the lessee may sublet with the lessor's consent", and the lessor has the right to terminate the contract if the subletting is not authorized. Therefore, if the second landlord secretly partitions and sublets the property, the lessor can recover the property at any time, and the actual residents' living rights will lose their contractual basis. The second category is the group leasing line: Article 8 of the "Measures for the Administration of Commercial Housing Leases" requires that the original designed rooms be the minimum leasing units, and the per capita living area must meet standards. The "Beijing Housing Lease Regulations" further prohibit altering the internal structure of the house for subletting, subletting by bed, and subletting in kitchens, bathrooms, and balconies. Violators will be ordered to correct the situation by the housing and urban management departments and may be fined. In Beijing, similar complaints are usually investigated in conjunction with fire departments and local authorities. The third category is the safety and health line: After the house is illegally partitioned, there are often issues such as illegal electrical wiring, poor ventilation, and fire hazards. Even if the lessee was aware of these issues at the time of signing the contract, they can still terminate the contract at any time according to Article 731 of the Civil Code and demand the return of the deposit and unoccupied rental payments. In practice, a common dispute point is that the actual residents' contracts with the second landlord are usually still valid, and they can claim for rent refunds and hold the second landlord liable for breach of contract. However, if the second landlord has gone missing, the recovery target should be the individual, and attention should be paid to preserving property clues when there are multiple similar complaints against them. For neighbors, the approach is different: Neighbors are not parties to the lease contract and can file administrative complaints and claim neighboring rights. They can report the issues to the housing and urban management departments, fire departments, and 12345 hotline simultaneously. For noise pollution complaints, they can also claim according to the regulations on social life noise.

IV. Practical suggestions and legal basis

The first step is to secure evidence: photos and videos of the partition structure and the beds in the room, the lease contract and payment receipts, and screenshots of the platform's housing listing page. The second step is to notify the sublandlord in writing to terminate the contract and demand the return of the security deposit and remaining rent, while retaining the delivery record. The third step is to file a complaint with the housing and urban-rural development authority, urban management authority, fire department, and 12345 regarding their illegal partition and group rental activities. The fourth step is to initiate litigation if mediation fails, claiming the termination of the contract, the return of the rent and security deposit, and compensation for losses. The main legal basis: Articles 716, 717, and 731 of the Civil Code of the People's Republic of China (effective January 1, 2021); Article 8 and Article 21 of the Measures for the Administration of Commercial Housing Leases (effective February 1, 2011); and the provisions prohibiting partitioned leases and group rentals in the Beijing Municipal Housing Lease Regulations (effective September 1, 2022). Specific application shall be subject to the currently effective regulations.

5. Henglue Law Firm's Advice

Three key points about illegal subletting: 1. If the sublessee sublets without consent, the landlord can terminate the lease. 2. Dividing and building structures for subletting beds is explicitly prohibited. Complaints can be used as grounds for enforcement. 3. If the subletting endangers safety or health, the lease can be terminated immediately, and the security deposit and rent should be refunded. For disputes involving housing leases and neighborly conflicts, you can seek resolution through legal channels.Property sales and construction projectsYou will receive a comprehensive solution for the service, which includes the option of recovering the security deposit and rent payments.Creditor's rights and debts, and enforcementFor more information on complaints and the progress of administrative procedures, please refer to the relevant sections.Special servicesFor any questions regarding the column, the subletting contract, or business compliance, please feel free to consult us.Business and contract disputes in enterprisesTeam.

VI. Frequently Asked Questions

Q1: Is the contract for the subletting of partitioned rooms valid, and can I just leave without any further action?

The subletting contract between the actual resident and the secondary landlord, unless there are other invalid circumstances, is usually still binding on both parties. However, the secondary landlord's illegal partition constitutes a breach of contract, and you can fully claim to terminate the contract and move out. Once the lessor terminates the contract with the secondary landlord, your living basis will be lost. You should fix the evidence and leave a written record of the termination as soon as possible to avoid being regarded as withdrawing from the lease without a valid reason and having to pay the breach of contract penalty.

Q2: To prove group renting, what evidence should tenants or neighbors prepare?

The three types of evidence are the most useful: first, evidence of the current state of the house (photos and videos of partition walls, bunk beds, piled-up items in public areas, and illegally connected electrical wires); second, evidence of the number of people and their living conditions (platform housing listings, group rental advertisements, delivery and takeout records, and entry and exit records); third, evidence of contracts and payments (leasing contracts, transfer and receipts, and chat records). When submitting complaints to the housing and urban-rural development department, urban management department, and fire department, these pieces of evidence should be submitted together to form a complete chain of evidence.

Q3: How much does it cost to move out? Can I get a full refund of the deposit and rent?

The illegal partitioning by the sublandlord constitutes a breach of contract. In principle, the security deposit should be refunded in full, and the rent for the period of non-occupancy should also be refunded; the rent for the period of occupancy shall be settled according to the actual usage. If you move out without giving advance written notice, the sublandlord may claim damages for vacancy, so it is necessary to terminate the contract in writing and keep the evidence of delivery. The litigation costs include acceptance fees and possible appraisal and notarization fees. For small-value disputes, you can opt for the small claims litigation procedure to reduce costs.

Q4: How long does it usually take to file a complaint or initiate legal action?

On the administrative complaint side, after the housing and urban management authorities accept the complaint, they will generally conduct on-site verification and order rectification. The processing period is usually several weeks. On the litigation side, the first-instance civil ordinary procedure usually takes three to six months, and the time limit for applying the small claims procedure is even shorter. If the second landlord is uncontactable, the service needs to be announced through public notice, and the period will be extended accordingly. Therefore, the earlier the evidence is fixed, the more controllable the pace of protecting rights will be.

Q5: I've already moved in. What should I do now?

First, ensure safety and then protect rights: Check for electrical and fire safety hazards, and immediately evacuate if there are any dangers, while preserving evidence of the current state of the property. Subsequently, notify the second landlord in writing to terminate the contract, refund the security deposit and remaining rent, and simultaneously file complaints with the housing and urban management authorities and the fire department. If no resolution is reached through negotiation, proceed with legal action in court. If the tenant has already demanded the vacating of the premises, it is important to distinguish between the obligation to return the property to the landlord and the right to seek compensation from the second landlord, and to assert these rights separately.

The above answer is based on the judicial practice in the Beijing area. 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 currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence, to avoid missing the statutory time limits. →Legal services for real estate transactions·Beijing Henglu 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. In case of disputes, please consult a practicing lawyer in time.