Answer Happy

The Chinese Tenant Your parents own a residential townhouse unit in an exclusive subdivision which is offered for lease. The unit has been recently leased to Mr. Wang, a Chinese national, for residential purposes. The lease is for a period one year. The rental agreement includes a provision that the tenant must comply with the Townhouse Rules and Regulations, a copy of which was given to Mr. Wang. Among other things, the Townhouse Rules state that the unit shall not be used as a boarding or lodging house, nor for any business that is open to the public. In addition, the Contract of Lease stipulates that a maximum of five (5) persons can stay in the townhouse. Within the last month, your parents' attention was called by the Townhouse Administrator that a number of computers were delivered to your townhouse unit. When the Townhouse Administrator went to inspect the unit, he found that the residents were all male Chinese with ages ranging from about 25 to 35 years old. When he asked what the computers were being used for, the residents could not answer him very well because of language issues, although they did say that they were using the computers to send e-mails. At the request of the Townhouse Administrator, your father asked Mr. Wang, who lives in another house within the same subdivision, to explain in writing what activities were going on inside the townhouse. Mr. Wang replied in writing that he understood that the lease was for purely residential purposes only. He further stated that the tenants were his employees who were staying in the unit to study and learn English, and they were all to go back again to his company in China. He said that there were six (6) computers inside the unit, one for each of the five (5) persons studying English and a sixth computer which was for Chinese TV use, hooked up to a special Internet service provider specializing in Chinese channels. He further reassured your father that the use of the premises would not violate any of the Townhouse regulations whatsoever.
Although your father has received the written explanation of the lessee, he still felt uncomfortable. He was not sure if Mr. Wang was telling the truth about the nature of the activities that were going on inside the unit. He was aware that there had been residences occupied by Chinese that were raided by the police and were found to be used for illegal activities. Your father has consulted you about what he thinks are his options: 1.) Use a possible loophole in the lease agreement and exercise the right to pre-terminate the lease agreement after giving a 30-day notice. One possible loophole is that Mr. Wang is not living in the townhouse unit but his employees. 2.) Report the matter to the police and ask them to do a covert surveillance of the activities of the Chinese. 3.) Wait for the expiry of the lease and not renew the lease contract. 4.) Renew the lease contract at its expiry, reasoning that there is really no violation by the lessee on the lease agreement because he did not specifically state in the lease agreement that he will live in the unit. All that the lease contract stated is that there will be a maximum of five (5) persons who will live in the unit and that the unit will be used for residential purposes. So far, the unit is being used solely for residential purposes, according to Mr. Wang. Discussion Guides: 1. What are the ethical issues facing the landlord? 2. What are the ethical issues facing the Townhouse Administrator? 3. What are the ethical issues facing the tenant? What possible illegal activities could be going on? 4. How will these issues affect your view of future Chinese tenants? 5. Will your course of action change if the tenant is your relative, instead of a Chinese national?