Check a long-term rental’s escrow account before paying a full year’s rent upfront

Cost: No cost at all. It takes just a few minutes to verify.
In plain terms: The discount you get from paying a full year’s rent upfront is minimal. If the rental company goes out of business, you lose both your security deposit and the rent you’ve prepaid for the remaining months. It gets even worse if you take out a rent loan: even if the company disappears, you’re still obligated to make all monthly loan payments. Always check whether the company has a publicly listed escrow account before signing any lease.
Benefit: 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.
Evidence grade: A
Sources: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
Notes: Carefully 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.