Top 11 Things Should be Noticed When Finding a House in China
Foreigners who want to stay a longer time in China will have to find a house or apartment there. Before you find the house, there is something you should take into consideration.
Using a real Estate agency
It is always wise to use a real estate company; however it can be time consuming to use local Chinese agencies. Indeed, currently there are many vacant apartments, but there seems to be an information gap. Newcomers do not know where the available housing is, and local real estate companies cannot always identify expatriates. Furthermore, even the larger less-personal agents sometimes use local staffs who do not understand the needs of the foreign community in addition to lacking English or other foreign languages skills to properly communicate.
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.
Renting Period
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.
Renting Contract
The lease terms are 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.
Payment of the Rent
It is paid in RMB, in cash, monthly in advance. In some cases, you can do a money transfer but you will need to open a bank account in a Chinese bank. Prices are not utilities included. Usually you need to add Management and tax fees.
Deposit Required
Owners usually ask to pay a 2 months deposit and 1st month rent in advance when you sign a long term leasing contract. 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.
Management Fees
Management fee is 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.
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. A comprehensive description of any anomalies is made and signed by all parties.
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.
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, 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.
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.