What are the advantages for using real estate agents? I understand that for new comers, real estate agents are wonderful in bringing them around showing them properties. For those who have been here a while and looking to change houses/apartments, do you go direct to the compound and have them show you the properties or do you still go through a real estate agent? What are the advantages and disadvantages of using an agent? Would your rental be higher because landlord has to pay the agent fees?

Agents will always try to have you pay as much rent as possible as their commission depends on your rent.

Ideal scenario is direct contact with landlords (who sometimes can give you a discount in your first rent if you close a deal without involving an agent).

Places that you potentially could get in touch with landlords are websites. Two that i know of are cityspace.shanghaiexpat.com and rentome.com.

hautumncloud wrote:What are the advantages for using real estate agents? I understand that for new comers, real estate agents are wonderful in bringing them around showing them properties. For those who have been here a while and looking to change houses/apartments, do you go direct to the compound and have them show you the properties or do you still go through a real estate agent? What are the advantages and disadvantages of using an agent? Would your rental be higher because landlord has to pay the agent fees?

You can't just go to a compound and have them "show" you the apartments. The apartments are owned by individual landlords, and most of them would list with real estate agents as their sole way for finding new tenants. They do not stay at the doors of their apartments waiting for visiting tenants, nor give keys to the compound management. As HC pointed out you can try to contact directly some landlords through, there are three major disadvantages for that:
1. It might be difficult to find an apartment for the specific compound you are looking for online.
2. Finding a landlord online and saving the real estate agent commission doesn't always mean that you are better off. Especially if the landlord speaks English.
3. In case there are problems you don't have any third party (real estate agent) to defer to and ultimately will have to go to police.

My advice would still be to use real estate agent, just make your requirements and price targets clear from the beginning to avoid them wasting your time.

it is really better for new comers to get help from real estate agents, while for most of Chinese and those who are already familia with the city, just go to the internet and find your flat. but of course, open your eyes and check whether it is a nice landlord or not^^ which is not such a difficult task, right?
wish everybodyhappy Dragon Boat Festival!

If you're looking at serviced apartments... go direct.
You probably need agents otherwise for the "access" to a wider range of available rentals.
Then again... I guess there are many sites these days for "direct deals". However, I would only advise this path for those who have access to someone who can read Chinese contracts.

Cylon wrote:You can't just go to a compound and have them "show" you the apartments. off.

Actually, I have been doing that and the compounds do have a leasing department or the management office who has someone who will show you the empty apartments/houses. The landlords do give permission to them to show the place to whoever who are interested whether via real estate agents or private tenants who come by themselves. Real estae agents have to go through the compound leasing dept or management to get the keys in order to see the place.

That is why I am wondering what are the advantages of using an agent.

Thanks for all the responses.

In case the management has the keys of the apartment, then it would make sense indeed to consider making a direct deal without getting an agent involved.

I have advertised a place to rent for the past two months and only one enquiry. I guess most of the owners are still relying on real estate agents to market their place as compare to self advertising. Therefore, you may have more choices going through agent and faster as well.

Nevertheless, for rent above certain amount, owner will absord all commission to agent. It is therefore an obvious choice of doing it through agent.

By law the tenant and the landlord are supposed to pay 35% commision to an agent and landlords take the 35% into account when working out their nett rental. However, as samcy mentioned, most will just absorb the extra 35% they have to pay as prospective tenant's shouldn't have to pay commission. When we mention they have to pay the full 70% some are fine and others will complain but no-one increases the rental. Sometimes they give less concessions but most times they just cop it. It really depend son how switched on they are. Anyway, there are way too many variables in negotiating leases to fix a formula. I suggest to just go in as low as possible without insulting the landlord and putting his nose out of joint and submit a long "wish list". Keep in mind that landlords are LORDS of the LAND and many have to be handled with "kid gloves" to get them to agree. Lots of farmers from Wen Zhou who have a real "attitude". UGH!!

Adrienne
http://www.shanghaiprops.com

samcy wrote:I have advertised a place to rent for the past two months and only one enquiry. I guess most of the owners are still relying on real estate agents to market their place as compare to self advertising. Therefore, you may have more choices going through agent and faster as well.

Nevertheless, for rent above certain amount, owner will absord all commission to agent. It is therefore an obvious choice of doing it through agent.

I was in similar situations multiple time myself. I advertised in many places, but got very few leads. My properties tend to get rented quickly every time I work with an agent. My only problem is that everyone of them would quote me one-month commission up front because their explanation for that instead of 35% is that my properties are high-end and only for foreigners. If I refuse, they will make it sound like they'll not show my properties.

Am I'm being stiffed unreasonably? How can I get them accept 35% and still show my properties?

Agents spend lot of time every day of every week finding the right kind of renter for their properties ( for the expat .. renters who can afford 20K a month or more ). In the end, they will show the properties that make them the most money and hopefully meet the requirements of the renter. Other people correct me if I am wrong, but it seems to me that there are alot of landlords that are trying to get top fen for their property chasing too few people who can afford it.

You have to evaluate the deal.. is it worth it you to get someone quickly... or how long can you afford to pay the mortgage and expenses on empty apartment with no income.

If you advertise it yourself.. you have to have a great deal to catch peoples attention - like the lady on here who recently advertised her delux villa for 10K a month. If you are one of the zillion other landlords who expect a gold mine out of their 100 sqm.. you have to pay the price to someone - either to the renter or to the agent.

There is a service somewhere in between called http://rentome.com/ - that helps make your apartment a good deal.

Just don't sign any exclusive agreements.