Advice of Leasing (return)
How to deal with your agent in Shanghai
AGENCIES
There are many agents in Shanghai that assist expatriates in finding properties. As a rule, large international property agencies only deal with developer compounds and high end local housing. Local Chinese agencies don’t generally deal with expatriates as they can’t speak English and they have limited understanding of expatriates requirements. There are plenty of expatriate agencies that cater specifically for the needs of expatriates. These agencies vary in size and experience and have local or expatriate management, staff and agents. Most deal with both developer and local housing to varying degrees. Generally you can find out the kinds of properties they deal in from their webbsites and adverts. When dealing with expatriate agencies you can tell quite quickly what kind of agency they are from their level of service and attention to your requirements.
Agency referral
Ensure that you get a referral before using an agent. Some agents are inexperienced and do not fully understand the housing needs of foreigners. Sadly, the whole experience can end up very time consuming, frustrating and disappointing.
Agent choice
You are entitled to use as many agents as you want but it is worthwhile letting agents know of any properties you have seen so they don’t show you a property another agent has shown you. Also, let agents know of any developments that you have seen that you have liked. They may have a property there that suits you. A good agent will show you a property that suits the criteria that you give them. If you are consistently shown properties that don’t suit your needs, request that they send photos before any inspections. You never know, they may just have a gem in the future.
Starting your search
Do some of your own research so that you know what kind of property your budget will allow and what areas suit your situation and lifestyle. Allow 2 weeks to a month to look around to allow for a good search, contract negotiations and preparation, furniture purchase, renovations and money transfers that may be needed.
Commission
Government regulations state landlords and tenants are to pay a combined commission to the agent which is equivalent to 70% of the monthly rent. However, rentals above USD$500 per month are deemed substantial and many tenants do not need to pay a commission to the agent. With developer only properties, Landlords usually pay an agent the equivalent of 1 to 1.5 months of the rent for introduction and negotiating services.
Offer letter
If you find something that you like, put in an offer immediately. It will give you the first right to lease the property should your terms and conditions be acceptable. An offer is non-legally binding but shows interest in the property and briefly secures it should someone else come along. Remember that properties are being shown to others and can’t be secured for too long.
Contracts
For non-Chinese speakers, the English version of a Chinese-English contract is used for negotiations. Ensure any changes to contract match the Chinese version which is generally the legal binding version. If you are concerned about your contract’s translations, ask your agent to get it approved by a government authorised translation service. Alternatively, use the Shanghai Municipal Government’s contract.
FREE ADVICE
If you need some advice finding housing in Shanghai, please feel free to call us at 5273 0703 or 5273 0705 or after hours on 13122 810 421 or send us an email at info@shanghaiprops.com. Webb: http://www.shanghaiprops.com