Hi,

To my big surprise my friend who is Chinese secured his apartment in Beijing, a high-class apartment of 50sqm without paying any agency fees. He said that the agency only charges the landlord.

But what I've seen in Shanghai is that the agencies charges from both the landlord and the tenant - does that only apply on foreigners and expats? or on Chinese as well?

Would be great if someone within the real estate business could explain this.

Thank you.

That's correct.

Been ripped off several times in Beijing. The taxis are the worst. Can't trust anyone.

But the real estate business seem to be very different to the Shanghai one.

From my understanding, in Shanghai, usually landlord pays the agent, renters do not pay anything. I rented two apts, I did not have to pay a penny on either. However, the cheaper properties, renter and owner might have to share the agent fees.

Btw, for Beijing, high-class and 50sqm does not belong in the same sentence

OK, usually, the agent fee is 70%. 35 comes from the renter, 35 comes from the landlord. However, for a higher price apartments, landlord would pay all 70%. There is no specific rule, but as a rule of thumb, you can think that after 8-9k rmb/month, the landlord should pay the agent and you (renter) should avoid any agent fees.

CORRECT.
It is considered that the tenant is already paying a premium in the higher priced properties, and therefore the landlord will generally pay agents fees.

That's right, usually our cases over 8000rmb, the fee is from the owner, but if below 8000rmb, the most easy way is charge for both.

Yeah right.... An apartment you agreed to pay 8000 that suppose to worth only 6000...
landlord pays 100% agency fee. He even takes you out for dinner once a week.....

Golden rule on renting apartment "NEVER NEGOTIATE THE AGENCY FEE"
Think of it this way... why would the landlord (CHINESE) pay 70% and not argue about it?

Juventino wrote:Hi,

To my big surprise my friend who is Chinese secured his apartment in Beijing, a high-class apartment of 50sqm without paying any agency fees. He said that the agency only charges the landlord.

But what I've seen in Shanghai is that the agencies charges from both the landlord and the tenant - does that only apply on foreigners and expats? or on Chinese as well?

Would be great if someone within the real estate business could explain this.

Thank you.

Yup, monalisalee is spot on abt the premium being paid on "expat apartments" as opposed to local housing.

BTW, to the OP. Every city in the whole of China is different as far as agency commissions and then even in the city itself there are variations. We did work in Chengchun and the tenant pays all the commission. That was a bit of a battle as our agency doesn't take any payment from the tenants. It took a while to get the landlord's to agree to a different way but in the end they gave in.

Adrienne