STEP 1: Selecting and visiting
Using a real estate agency or
- Plenty of properties available
- Select apartments that could match your requirements
- Know the city, advise and communicate for you
- Plan the visits for you at your convenience
dealing directly with landlords
- Contact and arrange visits directly with the landlords by yourself
- Visiting and communicating on your own.
Agency fees
According to the Chinese Law, tenant and owner have to share the payment of the commission for the real estate agent: 35% is paid by the owner and 35% is paid by the customer .
Usually, for rent above 8'000 RMB, the whole commission fee could be paid by the landlord (to be negotiated with your agent)
Some agencies arrange for the owners to pay the 70% commission . However, tenants need to know that owners will be more likely to keep a high rent knowing that if they sign the contract they will need to pay the whole commission. As a result, your rent will be higher compare to what you could find and you will not be able to bargain that much the rental price. The agency fee has to be paid when the contract is signed.
Terms
There are short term (<6 months) and long term (>6 months) leasing contracts in Shanghai . Usually to rent an apartment you'll need to be renting for a period of at least 6 months preferably a year though. Most owners sign a 1 year leasing contract. It is possible to have short term leasing contracts but it depends on the owners and the terms are different: rents are usually more expensive. |
STEP 2: Contract signature
Contract
The lease terms should be written in English and Chinese . Only the Chinese version of a contract is acceptable by the courts and will be relied on the event of a dispute.
In case your agency or landlord do not provide an English translation, you can download a professional standard leasing contract with both versions.
Deposit
Owners usually ask to pay a 2 or 3 months deposit and 1 st month rent in advance when you sign a long term leasing contract (1 month deposit= 1 month rent).
The receipt for the deposit is called "shouju" and is a written recognition that the landlord has received the money. Deposits are often paid upon signing of the lease to ensure unit occupation, compensation for damages caused by the tenant, or non-performance of lease terms.
Should the property condition be deemed acceptable upon lease expiration, the security deposit will be refunded in full.
Deposits are paid back the last day of your leasing contract after you and the owner have checked the apartment.
If you break the leasing contract before the end of the leasing date, the owner will keep your deposit.
Management fees
Management fees are payable monthly to the management company. It covers the cost of maintenance, security of the building and amenities . Fee depends on the building age and facilities offered to the Tenants.
Tax receipt
The rental tax receipt (and other tax receipts) are called "fapiao" and the landlord has to pay tax (at present 5% of rental fee) to issue the receipt. You need "fapiao" for rental payments if you intend to use it in Chinese corporate bookkeeping or for any type of tax deductions in China .
Inspection Before moving in, make sure that the space is cleaned and all appliances are in working order . The inventory when you move in should be carefully checked and ensure – as anywhere in the world – a comprehensive description of any anomalies is made and signed by all parties.
The water, electrical and gas meter readings should be written down on the contract. Rented apartments in Shanghai usually come fully furnished. |
| STEP 3: Moving in and after
House insurance
In China , you are not required to have property insurance . In fact, all expatriates places are usually insured by the landlord in case of fire, bad weather, war, water…any other cause which is not attributable to the tenant. If you damage the apartment, you will have to pay for it, or it is possible to get a private insurance and insure your personal goods and the goods which are in the apartment (Public liability - Property Damage). Utility bills
The Tenant usually pays gas, water, electricity, and telephone charges . It usually costs around 50 euros or 65 USD all together. This is an average on 1 year: expect higher electricity bills during winter and summer. Those charges can be paid to any convenient stores like Kedi, Lawson or Convenience 21; or also at the post office or the bank. Just bring your bills with you.
- Electricity – billed monthly. China uses a standard of 220 volts and 50 cycles. Plugs come in at least four designs: three pronged angled pins (as in Australia ), three pronged round pins (as in Hong Kong ), two flat pins (US style but without the ground wire) and two narrow round pins (European style). You will be able to buy most kind of adaptors in Shanghai , but it is a good idea to bring a few with you to start.
- Water – billed bimonthly. The tap water is not drinkable or must be boiled before drinking. We recommend you use water dispensers with water jugs. It usually costs between 8 – 12 RMB for a 19 litres jug. The base unit can be purchased at any supermarket. Water containers can be delivered as needed.
- Gas – billed bimonthly. Most kitchen burners use gas.
- Phone / Internet – billed monthly. Usually you need to pay 30 euros or 35 USD for the installation of a broadband Internet connection. And every month you pay 15 to 17 euros or 20 USD for the subscription.
- Cable or Satellite TV – most buildings are cable ready, and give you access to Chinese channels (about 50 channels), and only one in English (CCTV 9). Some apartments have satellite TV installed but it is quite rare. If you want to install it, it costs from 2000-8000RMB (installation fees + one year subscription).
House keeping
A housekeeper - or ayi in Chinese and as called by most foreigners , costs from RMB 8 to 15 per hour depending on the number of working hours. Some of the services offered by an ayi include cleaning, ironing, cooking, taking clothes to the dry cleaners and the paying of utility bills . Some of them speak English or have experience working for foreigners, are generally more expensive. If you are living alone it can be great to return home from work to find all your clothes washed and ironed, and your evening dinner waiting in the microwave. Even better, most ayis are wonderful cooks!
It's important to remember that some ayis may not be used to dealing with foreigners and their cultural habits (laundry baskets are not the norm in China ), so be patient with your instructions and expectations. Tipping is not normally expected in China , but if you're satisfied with your ayi's service then a bonus will be more than welcome.
Find more about how to communicate with your Ayi here .
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