- OFFER
LETTER
It is common practice to submit an offer letter to the Landlord,
explaining your opinions on rent and other requirements. Both parties
should sign the offer letter to confirm a verbal agreement. Once
the offer letter is signed, the Tenant can decide to rent according
to the terms stated, or look for additional options. After both
parties agree the terms, a lease tenancy agreement is drafted.
- THE
LEASE
The lease agreement should include the names of each party, the
landlord's name and address, unit size, rental rate, and duration
of the lease.
- MANAGEMENT
FEES
Management fee is payable monthly to the management company. It
covers the cost of maintenance, security of the building and amenities.
Fee depends on the building age and facilities offered to the Tenants.
It is usually 5% of the monthly rent.
- THE
LENGTH OF THE LEASE TERM
The length of tenancy may range from one month to three years, with
one year an accepted standard. An option to rent beyond one year
is often included in the lease, and is a good way to negotiate a
lower price.
- SECURITY
DEPOSIT & FIRST MONTH'S RENTAL
Deposits are often paid upon signing of the lease to ensure unit
occupation, compensation for damages caused by the tenant, or non-performance
of lease terms. Should the property condition be deemed acceptable
upon lease expiration, the security deposit will be refunded in
full.. A security deposit is usually no more than two months' rent
without accrued interest.
- FORM
OF PAYMENT
Designated bank accounts should be specified, especially in case
of transactions done in an overseas account. Rental payments must
be made in Mainland China in RMB. Do not forget to get a government
registered/approved tax receipt upon rental payment.
- SPECIFICS
OF FURNISHINGS, APPLIANCES AND ALTERATIONS
A written list of all items provided to the premises and any unit
alterations is extremely important and should be formally made
part of the lease agreement.
- ADDITIONAL
FACILITIES
Health and recreation facility charges are included in the management
fee in some developments. Health club memberships are also available
at several clubs and hotels around Shanghai.
- UTILITY
FEES
The Tenant usually pays gas, water; electricity, and telephone charges.
Inclusion of a utility allowance for these charges is sometimes
negotiable.
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