11 Things to Know Before Signing Your Lease

Moving to a new country is very thrilling and exciting, but when you are faced with the daunting task of understanding this new city you are relocating to, and if you have children, having to find a good school and the worst, having to find a place to live in a short period of time, as it is always seems to be the case, the task becomes not only exhausting but quite an accomplishment for the regular person. There are things you should consider before you take the big step when you sign a lease agreement with a Chinese landlord.  So here are my ten picks to make sure you're prepared before you sign your name.

1. The basics

Although companies usually offer a housing allowance you are ultimately responsible for finding a place to live that you can call it home. But if you are in China, on your own or on a local hire package without any housing allowance, remember that the rule of thumb is never to spend more than 30% of your net monthly income on rent.  

If you have children, the first step would be to find the school first, as you don’t want to live too far away from where the children go to school.  Traffic in China, especially in big cities like Shanghai, is terrible, and the children will be very tired if they have to spend one hour commuting to school on a daily basis.

It is important that you understand what your neighborhood offers.  Living downtown in China means very little green open areas and only a few amenities at your disposal.  Downtown living is recommended for a single person or a couple without children.
So, if you are faced to look for an apartment or a home away from the town center, understanding your neighborhood is essential.  You want to be in a community that you understand because everything in China will be very foreign to you.

Consider how much you can afford to pay and follow the “rule” not to exceed 30-percent of your monthly income. Focus your search according to your budget and though you may be forced to compromise when finding a bigger apartment in a better area, make sure it’s worth spending the extra money. If you’re looking for a cheaper place to rent, try roommate services to share an apartment, but make sure you know what types of people or habits you’d prefer to avoid.

2. Where to search?

Not going to use a relocation and/or housing company because of the extra cost the next thing is to look in the newspaper/magazine classifieds, housing websites, etc.  It is also a good idea to tell your friends that you’re looking for an apartment/home to rent and maybe they know something in their compounds/buildings.

3. What to search for?

Take a sheet of paper and write them down your requirements list.  Do you want a quiet building close to school or work, that allows pets and has free parking? How about a dishwasher or  a large washing machine?
You may also want to visit the neighborhood at various times of the day, night and weekend to see if it’s what you expected.
These all count when you decide where to live in for the next few months, the next year if not years to come.

4. What’s included?

It’s very important to know if the rent includes heating, water, electricity, cable or internet connection but more important is to know what are the average utility bills in the building.  Ask the landlord if you want to be make sure you won’t get crazy numbers on your bills.

5. Read before you sign

A common mistake we usually make is not to read a contract before we sign. Obtain a copy of any rules and regulations, make sure you go through everything and before you sign the lease, check to see if these are mentioned:

• The beginning and the expiration date
• The rental price and information about your security deposit
• What are the reasons for which your landlord can terminate your lease contract
• Are there any penalties for moving out of your apartment before the expiration date?
• Are there any responsibilities on your head for repairs and such?
• Will your landlord give you a home furnishings allowance?  If yes, how much?
• Find out your landlord’s policy for maintenance and repairs, i.e. will your landlord paint the interiors every year, wash the curtains every six months?
• Find out your landlord’s policy for letting you customize the property, i.e. painting the walls, adding wallpaper, hanging pictures on the walls, modifying the curtains, changing light fixtures, etc.  Make sure you get verbal commitments in writing otherwise there will be a good chance the verbal commitments will get lost in translation.

6. Contract issues

It’s a big move so you have to make sure you’re covered on every aspect so never sign a lease without seeing the apartment even if it’s a bargain.  See it during the day and during the night.  Pay attention to presence of mold and repairs needed.  Make sure you can stand the noise factor.  All roads are noise in China.  Make sure you have double pane windows.  Don’t ask, check by yourself. 

Second of all, our advice is not to sign a contract that has an automatic renewal clause, because you may not know what’s going to happen next year. Maybe you change work or move to a new city and a renewed contract would only force you to pay even if you’re not living there.

Last thing and a very important if you enjoy privacy, keep away from a lease that gives the landlord unlimited access without notification. Tenants have their rights and a landlord should be permitted without notice only in case of emergencies.

7. Inspect the apartment

Most important thing when you inspect an apartment you plan to lease (or buy) is not to let the looks deceive you. Look for the “hidden” attributes and if there’s any damage ask for it to be repaired otherwise you may be blamed for it later.

8. What to look for

You like the price, the area is great, but you need to see where you’re going to live. Here are a few things to take a closer look at:

• Pipes - be it gas, water or anything else, check for leaks.
• Sink faucets, shower heads and water - make sure water (both cold and hot) really comes out of the faucets and the shower head and it’s with a decent pressure. Also the toilet has to flush properly and thoroughly.
• Electricity and appliances should all be working. Check if all the lights or other electric devices are operational. Also check the air conditioner and the heater to see if they’re good for anything.
• Walls and windows. Check the windows to see if they open, close and lock properly. Also inspect the walls. The more walls in common (shared with adjoining apartments), the greater the chance of noise from next door.
• Noise. For a young family or for a family with teenagers who need to concentrate on their studies, outside noise may be extremely disturbing and may interfere with learning.  If it’s a highly trafficked area you may have problems concentrating and even sleeping.

9. Negotiate your lease

If everything went smooth, you like the property and the landlord likes you, it’s worth trying to negotiate a little bit.  Landlords give themselves room for negotiation, especially in China!

10. Know your landlord

It’s very important to know some basic information about the landlord.  If it’s a management company with thousands of apartments for rent it may be harder to negotiate, but if it’s an individual landlord and they just need to secure the income each month, you have a green light to close the deal with a small discount.

Finally, get your deal:

Read the lease carefully and see what applies and what doesn’t.  If there are things in the lease you may not need or if you’re willing to take some responsibilities like furnishing the property yourself, painting the interiors or maintaining the property – small maintenance issues -, ask the landlord to lower the rent.  Another way could be to offer a longer-term lease or a higher security deposit.  A very important aspect of negotiating your lease is to be polite and not give ultimatums because off the bet the Chinese feel the “big noses” or the “white people” always take advantage of them.  Moreover foreigners are believed to be flush with cash and the Chinese landlords feel they will lose face to give you a good deal.  So, to win the negotiating battle you have to befriend your landlord and do whatever you can to be liked.