The Protection of Tenants in Germany and China

Abstract

Residential tenancy law is caught in the area of tension between freedom of contract and regulation. Considering the existential importance of housing, tight housing markets with a shortage of supply call for a certain degree of tenant protection and thus justify a limitation of landlords’ freedom of contract. Accordingly, the provisions of the German Civil Code (BGB) aimed at social tenant protection have proven themselves as means of protecting social peace. In China, tenancy law falls short of this degree of protection, even though the tenant rate has risen significantly in recent times, especially in metropolitan areas, and there is a shortage of housing. In broad continuity with the previous law, the Chinese Civil Code has some gaps in this respect, which should be closed to meet the situation of the Chinese rental housing market. However, there are now apparent efforts to strengthen tenants’ rights in China.