Here are a few things, you should know before contacting one of them.
| REAL ESTATE AGENCIES | LANDLORDS | |
| Selecting & Visiting |
- 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 |
- Contact and arrange visits directly with the landlords by yourself - Visiting and communicating on your own. |
| Negociation & Contract Signature |
- Bargain for you - Provide a professional contract with an English version - Help you settle in (telephone & internet installation, police registration…) - Agency fees (see next section) |
- Negotiation and signature on your own - Use the landlord contract (might not have an English version) - No agency fees to pay |
| Moving in and After |
- After-sales services and support - Intermediary with the landlord |
- Might be not always willing to help you - Might have to solve some problems by yourself |
It is always wise to use a real estate company; especially for newcomers who do not know Shanghai. The counterpart
of this service is the agency fees.
The most difficult point when using a real estate agency is to find a good agent: able to communicate efficiently,
to understand your needs and to show you quality accommodations.
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..
