Termination or renewal of an office lease in Beijing



You are in Beijig and you need more office space ? Great ! Your rent is now too exensive and you want to move ? It’s possible. And if you want to close your business, it is a sad ending but it is possible. In all these cases you have to break your contract, this is never easy and you might need some advice.


In case there is a break option inside your contract, things are going to be simpler. If not, you’lll lose your guarantee deposit, and sometimes you even might have to pay aditional sums to compensate the loss undergone by your landlord. Everything depends of the clauses in your contract. This is why when you enter an office it is better to have the smallest possible deposit, and try to add a clause in the contract stating that you won’t pay any additional amount in case of breach of contract.


If you want a renewal, the big issue is the new rent. In China Tier I cities, rent are skyrocketing and owners are often happy to have you out in order to have a better rent. Still, renewing the contract can be complicated, more than you think because sometimes one year after you went in your new office, the market price can have dramatically changed.


You might find yourself unable to afford the new rent. And have no choice but leaving. The best advice you can get is to negociate longers terms of contract, and be careful with the contract clauses when you sign the contract regarding termination and renewal. Some contracts are better writte, to protect the office lease.


You can ask your real estate agent to help you to negociate, it can be sometimes really advatageous to have someone on your side and to help you in your check out.


If you want to move out, you’ll should send a moving confirmation letter to your landlord and tell in advance that you are going to leave, 2 months are necessary.


Here are a few tips :


  • try to have you bill payments coordinated, for electricity, internet, telephone
  • have pictures of the office when you moved in and out
  • have plans about the fuurniture and ensure you can move it easily
  • regroup all your keys and cards in order to give them to the landlord
  • ask you guarantee deposit
  • collect your mail
  • unregister the company from this adress and register the new address
  • see if you can sell a part of your furniture


Be careful with broken things, you might be misled by the tranquility of the landlord during the lease, at the termination many things will have to be sorted out.



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