Purpose This study uses Lefebvre’s ternary space framework to analyze the formation mechanisms and governance challenges of informal rental spaces in China’s urban villages. It investigates governance dilemmas within informal housing rentals. Through analyzing Village A, this research examines how ternary spatial practices are co-shaped by landlords, sub-landlords, tenants and managers. The purpose of this study is to propose an alternative solution with governance as the focus to replace the approach of demolition and reconstruction, thereby optimizing the informal rental space. Design/methodology/approach This study used participatory observation and semi-structured interviews with four stakeholder groups: landlords, sub-landlords, tenants and governance actors. Findings The findings of this study are as follows: perceived space manifests as low-rent yet disorderly environments driven by industrial agglomeration and location advantages; conceived space reflects power asymmetries: native villagers dominate rule-setting via social networks, while sub-landlords face contractual risks and tenants experience exclusion; and lived space exhibits latent conflicts from governance ambiguities and dual enforcement standards. Research limitations/implications Research limitations include the application of Lefebvre’s framework to dissect multistakeholder spatial interactions in China’s informal rentals, revealing co-shaped spatial practices and governance dilemmas. Originality/value This is a single case study that restricts comparative analysis across regions. Governance dynamics may evolve beyond the observed timeframe.
Jiang et al. (2026) studied this question.