Two questions:


1) Im looking for a place in 8 Park Avenue possibly and the landlord is requesting 3 months up front payment:

First months rent and 2 months deposit.

Is this standard procedure?

Seems like a lot of to put down intially. I'm afraid once i leave it wont be able to get back so easily....

2) If i rent off a landlord privately (without using a real estate agent) what is the proper way to prepare a contract, etc? Is there a legally binding contract template i can buy somewhere? For you guys dealing with landlords directly, what do you do?


Any comments?

I live in 8 Park. Theres no set rule, although usually they will ask for 2 months deposit and 1 months rent, but in nearly all cases you can negotiate that down to 1 and 1.

I would be worried about giving two months. In fact, i'd never do it. They don't hold it in a seperate account and just go and spend it. Therefore when you leave, you will usually have to wait until the next person pays to get your bond back. Can be painful.

Yes, 3 months is perfectly standard. One month's rent and two month's refundable deposit. Most of our clients pay this and get their two month's deposit returned after they move out and bills are paid etc. The utility companies can do a reading on the day you move out and you can pay then and there. You can't however get the telephone bill until the due date. I've seen places that have been left in pretty poor condition and the previous tenant has got back their deposit. There's good and bad stories on both sides of the fence.

Contact the real estate bureau in your district to get a template of the lease. It will be in Chinese. Have a look at our Advice on Leasing so that you are aware of the things to cover during offer, negotiations and contract period.

Good luck!

Adrienne
http://www.shanghaiprops.com

What about a contract hand-written on a piece of paper signed by tenant and landlord?

Is that legally binding contract? or is it worthless as the paper its written on?

A contract's terms and conditions that has been agreed upon by both parties signatories, irrespective of how much or how little information is included, is legally binding. However if one wishes to contest the terms and conditions of the contract for whatever reason, they would be best to employ the services of a lawyer.

Adrienne
http://www.shanghaiprops.com

dannydxc wrote:What about a contract hand-written on a piece of paper signed by tenant and landlord?

Is that legally binding contract? or is it worthless as the paper its written on?

Danny go direct if you can, You don't need anyone in the middle. Get someone who is Chinese to help you. You can make your deal with the landlord. Look him in the eye shake his hand, give him the first months rent and MAYBE if he insists One month deposit. He won't have any fees to pay and you won't have any fees to pay. Have a Chinese Lawyer (perhaps your company can supply one) look at any lease before you sign it.
If your dealing with a indiviual person who owns the apt. , they need to have it rented. You will be surprised what they will do. Remember Their is no bottom. Don't leave anything on the table.

3 months is pretty standard for most qualified landlords. We dont sign contracts with anyone for any less than that as there is not reliable way to check credit so its a necessary evil to protect our properties' interest. That said, if its a good property, one does not need to pull any shenanegans to keep rent coming. While its is a pain not to have a place rented out, its nothing compared to getting a bad or cheap tenant so keep in mind what the landlord is doing is protecting his/her interest as well. That said, hang on to as much as you can an negotiate like crazy. If you are not good at that then consider getting a qualified agent. Good luck.

I pay one month in advance and 2 months deposit and I think this is very standard for expat housing. Chinese housing is different and most of my local friends and colleagues pay 6 months or a year in advance, but the absolute amounts are lower (average around 1500 or 2000 per month).

According to my experience, 3 months is standard in Shanghai. As I remember, my landlord paid the agent one month rent as commission after we signed contract and paid 2 months deposit plus one month rent. Since you don't have to pay anything to this agent, why not hire one? To close the deal and get his commision, the agent will help you bargain. So tell your agent what you want. Hopefully he will help you! If you are afraid of being cheated, find a reliable local friend or colleague to accompany you.

nothing is standard in Shanghai. You can bargain on your own. You DON'T pay the agent anything. He will get you to pay more then you have to and will get a kickback every month from the Landlord. THAT IS STANDARD IN CHINA.

The only way you won't get cheated is if you make the deal yourself.