Guangzhou Passes Regulation Prohibiting Rental Utility Surcharges
Guangzhou authorities have passed a new regulation prohibiting landlords from charging tenants rates for water and electricity higher than official government utility pricing.
The Guangzhou Municipal People's Congress Standing Committee recently approved a new policy requiring landlords to charge tenants for electricity and water based strictly on government-mandated residential rates and actual usage. The regulation, which awaits final approval from the provincial government, aims to prevent landlords from profiting by marking up utility bills.
The policy identifies eight specific prohibited practices, including charging rates above official government pricing, inflating usage data through faulty meters, or factoring common area utility costs into individual tenant bills. Additionally, landlords are prohibited from applying service or management fees tied to utility consumption.
Non-compliance carries significant financial consequences. Landlords found in violation must refund the excess charges and face fines of up to five times the amount overcharged. To ensure transparency, the regulation mandates that landlords present itemized utility bills, and grants tenants the right to verify consumption data directly with water and power suppliers.