Shanghai Daily news

Expats looking for their own "Home Sweet Home" in Shanghai need to be aware of some traps for young players when searching for the ideal apartment, writes Ayesha De Kretser.
Renting in Shanghai can be incredibly confusing and finding the right apartment often involves a lot of hard work and can take a long time.
There's no real barometer for judging whether an apartment will be of any particular standard, as price is often not a good indicator. Whether your budget is 3,000 yuan (US$360) or US$3,000 a month, finding the right apartment will mean a lot of searching and having an understanding property guide to advise you will be very important.
Be sure to establish a clear picture of what you want before embarking on your search. Weighing up the pros and cons of living in an old apartment or house is also important, for while old Shanghai might be charming, occasional problems can arise when it comes to water supply, heating and other issues.
We spoke to Ark International, a local orientation and housing consulting company for expats, to find out the answers to some of the most frequently asked questions about renting in Shanghai.
What constitutes a "good deal" on a rental, and how do I know that the price is fair?
Rents in Shanghai vary depending on many factors. Key points include location, size, layout, quality of renovation/fit-out, old/new, facilities and outdoor space.
A property's location not only refers to the area/district but also to whether it is directly on a noisy road or tucked away on a quiet lane, who the neighbors are (international or local community), and how close it is to shopping/entertainment etc.
The most important location factor when it comes to high-rise buildings is the floor the apartment is on - the lower the cheaper, as higher floors usually come with fresh air, lots of light and sunshine, nicer views and a quieter environment inside the apartment.
Historic buildings with old renovated apartments (typically within the former concession areas of Shanghai) are more expensive than units in new residential compounds, despite sometimes suffering from rusty water pipes and insufficient electricity to power an expat family's air conditioner use in the hot summer months. A new villa or apartment downtown costs about twice as much as a similar place in Pudong or Hongqiao.
Is it worthwhile to find a cheap place and then renovate it myself?
Most landlords who want to rent out their property prefer to renovate it themselves and they spend a lot of time and money doing so before they submit it to an agency. This is particularly the norm for the areas which are popular for expat housing, such as the downtown area, Hongqiao and Pudong.
However, the outskirts of Shanghai offer limited property which is up to the standard that an expat would expect. Since housing in these areas is cheap, it might be worth keeping an eye out for a place that can be rented for a very low amount and then fix it up yourself.
If you opt for this solution, make sure that you get a long-term lease; specify in the contract that you have the landlord's permission to make alterations/additions to the existing layout; and add an extra clause in your contract which states that if the landlord terminates the lease agreement prematurely, you are entitled to have your expenses for the renovation work covered.
How does a landlord select a tenant? How can I secure a contract if there are other interested parties?
An important thing to keep in mind when you deal with a private landlord (as opposed to the expat-focused compounds which have their own management/leasing teams) is that you are about to rent someone's home or someone's investment. You will be evaluated on criteria such as your income, nationality and so on.
The bottom line for a landlord is: "Will this person be able to pay the rent on time every month?" and "Will my property be well taken care of?"
If a landlord has two potential tenants to choose from, you can be sure that it will not be the bachelor who asks if it is OK to throw parties every weekend who ends up signing the contract. Make an effort to give your future landlord a good impression of you and your intentions, and try to maintain a good relationship after you move in as well.
In some cases, a popular property with several qualified parties ready to sign, the landlord's choice will be determined by who can offer the best terms, such as the highest rent or the longest lease term.
What is the minimum lease term in Shanghai?
Most private landlords and compounds catering to expats will not accept lease terms of less than 12 months. If you can sign a lease contract of two to three years it gives you the benefit of a slightly reduced rent.
Shanghai has a limited selection of service apartments for short-term rentals, but these are significantly more expensive than one- to two-year leases.
What kind of deposit do I have to pay for my new home? And will I get it back when I leave?
Two months rental is the standard. Some landlords will ask for more.
Your landlord is entitled to forfeit some or all of the deposit upon lease termination in order to cover the following costs:
￥ Damage to the property, other than normal wear and tear.
￥ Outstanding utility bills such as unpaid phone, gas and water etc.
￥ Premature lease termination by the tenant.

Premature lease termination without good cause will most likely mean that you lose the entire deposit, unless you have a Diplomatic Clause in your contract. If you have fulfilled your lease obligations and not damaged the premises or any of the provided furniture/fittings, you are entitled to have the full deposit without interest returned no later than 30 days after you move out.
What currency is used for rent payment?
Usually, rents are quoted in US dollar but paid in RMB. This matter is subject to negotiation with your landlord.
What extra costs, such as utilities, should I include in my budget besides the rent?
Utilities cover water, gas, electricity, phone, ADSL and satellite TV fee.
In addition, some landlords will charge you a management fee. The management fee covers security, cleaning and maintenance of communal areas, access to facilities (such as a pool, gym and/or children's playground) and building administration.
If you need a parking space you will usually have to pay an extra monthly fee on top of your rent.
Who pays for legal fees in connection with a lease?
There are no legal services or lawyers required to sign a lease agreement in Shanghai. Should either party request legal counsel, they will be responsible for covering their own costs.

Art International
Address: Rm 2520, 500 Xiangyang Rd
Tel: 6445-2651