Hi,

Currently looking for an apartment in the range of 5000 - 6000.

All the real estate agents I've talked to quote 35% of the monthly rent as their fee, but my local friends tell me it should be lower or even 0% in some cases.

What is the average agent fee for renting apartment? FYI, I'm looking around the Century Park area.

Thanks in advance.

Hi kendoras. There is a rule by the Shanghai Government that tenant and landlord pay 35% of one month's rent as commission to the agent for their services. This is all well and good if the rental is for locals or low budget as 35% is a fair and reasonable fee for their services. BUT, for a certain sector of the expat market their rental rates are well over local rental rates and they are also paying a premium for their apartements therefore landlords cover both percentages of the commision and the agent gets 70% from the landlord and nothing from the tenant.

I'd like to point out that in lower budget accomodation, the 35%/35% rule usually applies but again, this is even negotiable. If the landlord is desperate to rent out the place and if he/she feels the deal is good, he/she will foot the full 70%commission.

You can give it a go and insist you will not pay and see what happens. It also depends on the landlord/agent relationship as well and if the agent wants to "go there" with the landlord.


Hope this helps......and all the best:-)

Adrienne

Shanghai Properties – Expat Agents Speak Your Language
http://www.shanghaiprops.com

Thanks, Adrienne, for your quick reply. Will definitely try to negotiate for zero commission.

The agent fee for the range 5000-6000 would be 70% of one months rental. This would be shared 35/35 between tenant and landlord.
This is a guidline that has been set by Shanghai Govt.

In the case of a high end rental, the commission would (normally) be paid by the landlord, but could have room for negotiation.

Suggest you google this subject as much has been written on the subject.

Your friends say " sometimes an agent will take NO commission? Yeah right.
They work very hard for their pittance, sometimes under VERY difficult conditions.
Change your friends.

Just wondering if a monthly rental of 15,000 RMB would be considered on the high end? And possibly the landlord would consider covering the entire commission? We've been looking for an apartment for awhile and have started using local agencies since we speak Chinese, but haven't broached the subject of commission yet.

^^ From what I know, with rentals above 7000rmb a month, the landlord pays the agency fees (i.e., 70%), and the tenant does not need to pay the agent/agency.

Probably more like 10,000 and above, but no hard and fast rule, and depends on things like how long the place has been empty, etc.
But always worth a try.

I've finally found a apartment I like and put down a deposit for it. The agent is saying the landlord is not paying 35% agent fee and I have to pay the 70%. Is this a normal circumstance? By the way, the monthly rent for the apartment is under 3000.

Well, this is only my opinion as a very experienced real estate agent. Ha Ha.
That is LOW END,so you should NOT pay the 70% They are screwing you.
35% maximum for you. Pay no more.
That is NOT normal, and is NOT legal.

Yes it is 35%. This is their country standardise charge.
never heard of 0%, unless you find your own source

For an update, I found one for 5500 (2-bed, 1-bath) and negotiated to pay 1300 (about 24%) to the agent. The agent then told me that if I bring my friends she will not take any commission from them.

FYI, the zero commission I mentioned in OP was when they rented 3 apartments together from one agent.

Thanks monalisalee and AleGna. We'll try to see if the landlord will cover the commission!

monalisalee wrote:Well, this is only my opinion as a very experienced real estate agent. Ha Ha.
That is LOW END,so you should NOT pay the 70% They are screwing you.
35% maximum for you. Pay no more.
That is NOT normal, and is NOT legal.

I've figured it was that, just couldn't find any info on it online. Going to be interesting when I bring this up to the agent.

unihead wrote:I've finally found a apartment I like and put down a deposit for it. The agent is saying the landlord is not paying 35% agent fee and I have to pay the 70%. Is this a normal circumstance? By the way, the monthly rent for the apartment is under 3000.

If it was me I'd walk away. What else is the landlord not going to pay for when you have problems down the line?

^^ Ditto that. It could mean more trouble later... that is, if the agent was being honest about landlord's unwillingness to pay his share.

Yeah, ditto 2.
As Humac so rightly suggests, the alarm bells should be ringing about this landlord.
Also, as aLeGna intimates need to check the agent is not two timing you as well.

Geez, under 3,000 rental, and you pay ALL the commission. Never heard of THAT.
Ridiculous.