Check a long-term rental’s escrow account before paying a full year’s rent upfront
Paying a full year upfront saves very little money. If the rental company goes bust or runs off, both your deposit and your unused prepaid rent vanish with it. Signing up for a rent installment loan is even worse: the rental firm disappears, but you are still stuck paying off the loan every month. Before signing, always check whether the company has publicly listed an official rental escrow account.
No cost at all. It takes just a few minutes to verify.
Regulations require any housing rental business that sublets units to set up a dedicated escrow account for re…
No cost at all. It takes just a few minutes to verify.
Regulations require any housing rental business that sublets units to set up a dedicated escrow account for rental funds and make it visible to the public. Subletting means a company leases entire properties from landlords and then rents them out to individual tenants. The tiny discount from paying a full year’s rent upfront is far outweighed by the risk of losing both your deposit and all prepaid rent if the company shuts down. This risk is even greater if you’ve taken out a rent loan.
国务院 (2025). 住房租赁条例（国令第 812 号，2025 年 9 月 15 日施行）（第十九条）. https://www.gov.cn/zhengce/zhengceku/202507/content_7032956.htm
Open source linkCarefully check whether any loan products are tied to your lease agreement. If a third-party app lets you pay a full year’s rent upfront to the rental company, and you then repay that amount via monthly installments, you’ll still be responsible for all payments even if the company ceases operations. Avoid signing any such contracts.