FAQ's
Getting Started
No, you can lease a residential property in Shanghai without residence permit or work permit.
For short-term accommodations (less than a year), browse at our list of Service Apartments. If you are working in Shanghai for a contract period of more than a year, we recommend that you to browse through our website for different types of property (New Apartment, New Villa, Old Garden House, Old Apartment). We have the most comprehensive rentable database in Shanghai, you can search these properties in our database or contact us for more choices of housing alternatives.
If you are looking for a short term lease there are options available in most of the serviced apartments. These service apartments rent on a monthly, weekly or daily basis. Through NewPort Real Estate's close relationships with most of the serviced apartments in Shanghai, we are able to arrange short-term lease options at the best price for you.
Finding a good property agent is critical during your stay in China, because you will need the help of a property agent at all times to assist with translation, maintenance and repair issues (many property agents signed the deal and walk away by leaving you dealing with the non-English speaking landlords). First, you need to ensure your home search activities are conducted via a property agent from a licensed property agency company. As property agency is an industry with low barrier of entry, there are many individuals who claim that they are licensed property agents who can assist you with the home search activities (many of them can be very friendly during the whole process, but walk away once the leases have been signed and are unavailable for later assistance). Secondly, visit their offices, which is critical, because many illegitimate agents do not have offices and will be easy to identify at this time. At SIRVA Inc., we are a fully licensed property agency with comprehensive teams that will support your stay in Shanghai, e.g. our international relocation team will share our experiences with you about acclimating to the local lifestyle; our home search team will assist you in finding the right home; and our post move-in support team will assist you with all your post move-in support issues.
Using only one agent will save you time and hassle as the agent will have better understanding of your requirements after the first appointment. Therefore, it is strongly advised to use only ONE agent.
NewPort Real Estate has seen thousands of properties in Shanghai throughout the years. Therefore, you can trust us to provide tenants or buyers the most appropriate recommendations. We have the largest property database in Shanghai, so other real estate agents will only show you repetitive viewings of the same property.
Finding a Home
Rents in Shanghai vary depending on many factors, in particular locations, property types and renovation / fit-out.
Location
The most important location factor is international schools. Properties around international schools (not necessary close to downtown) are currently commanding the highest rent, because most of these property owners understand that parents would normally like to live close to international school to shorten the commute to school for their children.
Secondly, properties around the international community such as Xintiandi, Green City, and the former French Concession area also command a much higher rent compared to others. The common characteristics of these places are the easy access to expatriate shopping facilities, bistros, cafes, western restaurants other amenities.
Property Type
Hotel quality serviced properties always command a much higher rent compared to similar type of properties owned by individual landlord (even though they are in the same compound), mainly because of the provision of housekeeping services as well as immediate repair and maintenance services. Unless you are in Shanghai for a short-term consultancy projects, most expatriates prefer to live in the non-serviced properties so that they don't feel like living in a “hotel” and more importantly, they prefer to decorate their own homes.
Historic garden houses, lane houses (known as detached old properties) and historic apartments are also commanding a premier rent in Shanghai. Since the deregulation of housing market in Shanghai, there is a trend of many foreigners and foreign investment companies investing in the historic residential properties – restoring the properties but keeping the original structure to ensure the intrinsic value of the properties. Due to the limited supply of these historic residential properties, as well as the entry costs of owning an old residential property (most of the old properties are also known as landed properties, and cost much higher to own and to renovate the old properties), most of these old residential properties owner are asking for a much higher price compared to new residential properties. Pricing of these historic properties is very unique, and totally depends on the size, design and layout of these old residential properties, as well as the owner's sentimental value.
For new apartments and new villas, the pricing depends on the location, the size, the floors (higher floor always fetch a higher price because of the fresher air and better view) and the associated facilities in the compound.
Renovation / fit-out
Prior to 2003, most of the new properties came un-renovated (only cement floor without any doors) and most of the property owners needed to renovated the entire properties themselves. Some property owners spent more than half a million US dollars in purchasing properties but renovated the properties with gaudy opulent furnishings (e.g. gold furnishing with big bulky furniture) and some property owners fitted out their expensive residential properties with all second hand furniture. Hence, it is important to use an experienced property agent who is familiar with the type of furnishings you are most comfortable with.
Today, most of the properties come with standardized developers' renovations with designer concepts, some other properties were sold with simple and upscale furniture as well. This trend has certainly helped with the supply of better renovated and furnished properties for the expatriate market.
However, a lack of premium stylishly designed properties in downtown still exists, SIRVA Inc. spends a great amount of time sorting through average properties looking for the best, and consulting with good landlords on proper renovation quality and western style. Even with in the best situation, you should still anticipate settling for minor quirks or prepare to pay a premium for unique, well renovated property.
Location
The most important location factor is international schools. Properties around international schools (not necessary close to downtown) are currently commanding the highest rent, because most of these property owners understand that parents would normally like to live close to international school to shorten the commute to school for their children.
Secondly, properties around the international community such as Xintiandi, Green City, and the former French Concession area also command a much higher rent compared to others. The common characteristics of these places are the easy access to expatriate shopping facilities, bistros, cafes, western restaurants other amenities.
Property Type
Hotel quality serviced properties always command a much higher rent compared to similar type of properties owned by individual landlord (even though they are in the same compound), mainly because of the provision of housekeeping services as well as immediate repair and maintenance services. Unless you are in Shanghai for a short-term consultancy projects, most expatriates prefer to live in the non-serviced properties so that they don't feel like living in a “hotel” and more importantly, they prefer to decorate their own homes.
Historic garden houses, lane houses (known as detached old properties) and historic apartments are also commanding a premier rent in Shanghai. Since the deregulation of housing market in Shanghai, there is a trend of many foreigners and foreign investment companies investing in the historic residential properties – restoring the properties but keeping the original structure to ensure the intrinsic value of the properties. Due to the limited supply of these historic residential properties, as well as the entry costs of owning an old residential property (most of the old properties are also known as landed properties, and cost much higher to own and to renovate the old properties), most of these old residential properties owner are asking for a much higher price compared to new residential properties. Pricing of these historic properties is very unique, and totally depends on the size, design and layout of these old residential properties, as well as the owner's sentimental value.
For new apartments and new villas, the pricing depends on the location, the size, the floors (higher floor always fetch a higher price because of the fresher air and better view) and the associated facilities in the compound.
Renovation / fit-out
Prior to 2003, most of the new properties came un-renovated (only cement floor without any doors) and most of the property owners needed to renovated the entire properties themselves. Some property owners spent more than half a million US dollars in purchasing properties but renovated the properties with gaudy opulent furnishings (e.g. gold furnishing with big bulky furniture) and some property owners fitted out their expensive residential properties with all second hand furniture. Hence, it is important to use an experienced property agent who is familiar with the type of furnishings you are most comfortable with.
Today, most of the properties come with standardized developers' renovations with designer concepts, some other properties were sold with simple and upscale furniture as well. This trend has certainly helped with the supply of better renovated and furnished properties for the expatriate market.
However, a lack of premium stylishly designed properties in downtown still exists, SIRVA Inc. spends a great amount of time sorting through average properties looking for the best, and consulting with good landlords on proper renovation quality and western style. Even with in the best situation, you should still anticipate settling for minor quirks or prepare to pay a premium for unique, well renovated property.
Except for diplomats, who are prohibited from living in the areas clustered by major senior Chinese officials, there are not many restrictions about where foreigners are allowed to live when renting a residence.
The most popular expatriate residential areas include:
The most popular expatriate residential areas include:
Locations
Main Property Type
Average Rent
Target Clientele
Binjiang area
New apartments
US$1,000 – 10,000
Targeting those who work in the Lujiazui financial Zone
Serviced apartments
US$1,500 – 8,000
Targeting those who work in the Lujiazui financial Zone
Green City area
New villas
US$5,000 – 12,000
Targeting expatriate families who want to live close to international school
Zhangjiang High-tech Park area
New villas
US$5,000 – 12,000
Targeting expatriate families who want to live close to international school
Lianyang area
New apartments
US$1,000 – 8,000
Targeting those who work in Pudong
Xintiandi area
New apartments
US$2,000 – 10,000
Targeting those who work in Huaihai road commercial and Xintiandi commercial area
Serviced apartments
US$2,500 – 10,000
Targeting those who work in Huaihai road commercial and Xintiandi commercial area
Former French Concession area
Old garden houses
US$5,000 – 20,000
Targeting those who want to experience the old Shanghai charm by living in houses in downtown
Old apartments
US$1,500 – 5,000
Targeting those who want to experience the old Shanghai charm by living in apartments in downtown
New apartments
US$1,000 – 10,000
Targeting those who want to experience living in the old affluent Shanghai area
New villas
US$7,000 – 10,000
Targeting those who want to experience living in the old affluent Shanghai area
Jing'an area
New apartments
US$1,000 – 10,000
Targeting those who work in Nanjing Road West commercial area
Serviced apartments
US$2,500 – 10,000
Targeting those who work in Nanjing Road West commercial area
Hongqiao area
New apartments
US$2,000 – 8,000
Targeting those who work in Hongqiao economic development zone
Gubei area
New apartments
US$1,000 – 8,000
Targeting expatriate families who want to live close to international school
Shanghai zoo area
New villas
US$4,000 – 10,000
Targeting expatriate families who want to live close to international school
Xujing area
New villas
US$2,500 – 10,000
Targeting expatriate families who want to live close to international school
Zhudi Town area
New villas
US$5,000 – 15,000
Targeting expatriate families who want to live close to international school
New apartments
US$2,500 – 10,000
Targeting expatriate families who want to live close to international school
Rental Costs
All advertised rentals are asking prices and the final rental can end up both higher or lower depending on lease term, inclusive / exclusive of furniture or any additional requirements. The level of difficulty on bargaining for rents is very much depending on the popularity of the properties.
The rent quoted typically includes the following items:
- Provision of a fully furnished residential property (inclusive of furniture and appliances);
- The management fee associated with the security, cleaning and maintenance of the building;
- Rental receipts; and
- Associated clubhouse membership in the compound.
Rental payments are required in advance of the following month. Rental payment is paid monthly and is due the day you move in and the same time each month after that.
Utility expenses are generally not covered under the rent. These utility expenses include water, gas, electricity, phone, ADSL usage fee, and satellite receiving fees.
Some serviced apartments are able to include water and electricity in the rent, depending on the rent. Non-serviced properties normally do not include utility expenses under the rent. However, what can be included in the rental fee is negotiable between each tenant and landlord.
Yes and No. Under the legal jurisdiction, the agency fee amounts to 70% of one month rent, and the tenant and landlord have to bear 35% each, respectively. However, the market practice is that if the rental amount of the residential property you are renting is above RMB8,000, no agency fees will be paid by the tenant. If the rental amount is exactly RMB8,000 or less, the fee payable will be 35% of a month's rent from tenant side.
A standard security deposit is held for "compliance with the terms of the lease agreement". Two months rent is the standard. Some landlords will ask for more – do not accept it! We have received some clients paying extra security deposits via other property agents.
The security deposit should be returned after the termination of the lease, without interest. Generally the security deposits are returned to tenant accordingly. However, the tenant may be asked to forfeit some or all of the deposit upon lease termination in order to cover the following costs:- damages incurred to the property, other than normal wear and tear;
- outstanding utility bills such as unpaid phone, gas, water etc; and
- premature lease termination by tenant.
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.
Generally, the rents are quoted and paid in RMB, although sometimes US$ is used. Exchange rate should be clarified in advance to avoid misunderstanding.
Lease Term, Lease Termination, Lease Renewal, Early Termination and Subleasing Rights
Most landlords will need to re-furbish / re-renovate part of whole properties after each tenant vacates (incurring monetary costs), and need to spend certain times to show the properties to potential tenants (incurring opportunity costs). Consequently most landlords are reluctant to accept short term leases.
Lease terms are typically starting from one year, renewing for a second year usually requires two months prior written notice from tenants.
Lease terms are typically starting from one year, renewing for a second year usually requires two months prior written notice from tenants.
No, renewal options or extensions have to be negotiated separately with landlords.
Your property agent or yourself need to issue written notice to the landlord 2 and 3 months prior to the expiry of the lease to indicate your intention regarding renewing the lease. Within 2 months of receiving the written notice the landlord has to use written reply to accept or refuse the new lease. Negotiations of the new terms can take place right up to the expiry of the old lease. A new contract should be entered into.
At the end of the lease, the tenant is responsible for reinstating the properties to the same condition as it was at the commencement of the term, except for to normal wear and tear. Landlords will prepare an inventory of the condition of their properties and the list of landlords' fixtures and fittings at the commencement of the term.
The landlord will be entitled to compensation normally equal to two months rental. In practice this normally means that you will lose your deposit. It is always worth trying to negotiate the amount of compensation with the landlord and most landlords are willing to forego claims for compensation if the tenant introduces a new tenant who takes over the lease on the same terms.
In the event landlord terminates the lease prior to the expiry of the lease term, the landlord shall refund the deposit and the tenant will be entitled to claim compensation according to the terms of the lease agreement, normally the equivalent to two months rental.
In the event landlord terminates the lease prior to the expiry of the lease term, the landlord shall refund the deposit and the tenant will be entitled to claim compensation according to the terms of the lease agreement, normally the equivalent to two months rental.
Normally Corporate tenants retain the replacement rights in the event the occupant is being transferred to another location. Upon reasonable advanced notice to the landlord, corporate tenants can nominate another employee in the company as a replacement occupant.
Subleasing is not allowed in a general contract. If you would like or require this clause it would be important to mention it from the beginning.
Other Questions
Prior to the handover of the properties, the landlords should undertake to do the following works:
- Sand and polyurethane wooded floors (most properties have wooden parquet)
- Repaint all walls and ceilings-walls (ceilings are generally finished in plaster)
- Check all electricity wiring, appliance and gas appliance and all sanitary and water apparatus are in good, safe and working condition
- Check all white goods are in good, clean and working condition
- If carpets are provided by the Landlord then they should be deep cleaned prior to handover.
Except for mis-use or negligence use of the white goods and appliance by tenants, most landlords typically bear the cost of maintenance of white goods and appliances.
Most apartment buildings, serviced apartments and villa compounds built mainly for the expatriate community can receive foreign satellite TV channels, however, the selection of channels can be very limited. Most tenants would install their own private satellite system to receive more channels.
Tenants are normally responsible for payment of the utilities (gas, water, power). Utilities are charged monthly. Gas, water and electricity bills for an average three bedroom apartments in the middle of the winter will not usually exceed US$200 per month. Utilities are always connected before the tenant moves in. SIRVA Inc. property agents and post-move in support team will take meter readings the day of the move in.
Telephone and internet connections are usually connected prior to your move-in. Most properties comes with 1-2 phone lines installed. If there are no lines installed the process is very simple, either the landlord or NewPort post move-in support team can arrange it.
Most buildings have more spare telephone lines. You may get one more line after signing the application form to the landlords.
Most buildings have more spare telephone lines. You may get one more line after signing the application form to the landlords.
200 - 220 volts, 50 cycles
A request must be submitted to the landlord and approved before the work begins.
It varies to a large extent, although the major landlords with extensive residential property portfolios are major domestic and overseas developers, there are also many individual owners who have plenty of residential properties in apartments and villas (some hold the old houses mainly located in the French Concession Area.)
The major landlords provide excellent management of their portfolios and find it beneficial to lease a unit in one of the single owned buildings. However tenants should avoid renting a separately/individually-owned property unless it is managed by a good management company.
Although there are legal channels through which a dispute between a landlord and tenant can be resolved, it is obviously better for both parties to resolve the matter privately. If you are a client of SIRVA Inc. we will do our best to mediate between you and the landlord, but keep an open mind and cooperative attitude, it is seldom only one party's fault! When a dispute occurs, if no settlement can be reached you can turn to the local court or to the Shanghai Arbritation Commission (Ceitac). Both these solutions are time consuming and expensive, so it is best to make sure first that you have a clear case. Fortunately, it is extremely rare for conflicts to reach the stage that legal action becomes necessary. We do not recommend our clients to take legal action over minor disputes.
