◊ Relocating to Shanghai

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• FAQ on Lease

- Rentals - Leasing Terms - Property Status & Furnishings - Approach to a Lease - Utility Fee

◦ Rentals

- Rental Quotation

Rental typically quoted in USD on a monthly basis, and usually paid in RMB.

- Payment Period

Rental typically paid in advance, usually on the first day of each month or the commencement of the lease, on a monthly basis.

- Management and Other Fees

Management fee include charges for building maintenance, security and cleaning of the common areas. Other fees include club membership fee, satellite charges and other minor fees. Landlords are usually responsible for paying the building management and other fees.

- Brokerage Fee

According to the Chinese Law, brokerage fee amounts to 70% of one month rental, tenant and owner have to share equally the payment of the fee. However, it is a common practice in Shanghai for the tenants to ask the landlords to bear the brokerage fee if the rental is above USD500.

- Security Deposit

A security deposit of two months' rental is usually required by the landlord. The deposit will be held by the landlords until the expiry of the lease and be refunded without any interest.

Conditions that Landlord will Confiscate Part or All of the Deposits:

• Any missing and/or broken items in the property;
• Any costs incurred by the landlord to restore the property; and
• Early termination of the lease without advance notice.

The security deposit will be refunded to you on the last day of your lease, once the landlord has checked the apartment for missing and/or broken items.

- Parking Fees

Some properties offer parking spaces. As there are usually limited parking spaces, a monthly parking fee is charged for using the parking space. The tenant will normally have to pay the parking fee if a parking space is required.

◦ Leasing Terms - ¡ütop

- Typical Lease Term

One year lease is common.  Generally, we are able to re-negotiate the rental down, or obtain more benefits on the same rental on behalf of tenants upon renewing the lease.

- Automatic Renewal Rights

Rarely in Shanghai . Typically, landlord will issue a written notice to the tenant two to three months prior to the expiry of the lease. The tenant will then accept or refuse the new tenancy based on the written notice. Negotiation of the new terms can take place right up to the expiry of the old tenancy.

- Sub-leasing Rights

Rarely in Shanghai.

- Replacement Rights

Normally Corporate tenant retains the replacement rights in the event the occupant is being transferred to another location. Upon reasonable advanced notice to the landlord, corporate tenant can nominate another employee in the company as a replacement occupant.

- Diplomatic Clause (Termination)

A Diplomatic clause enables you to terminate the lease prior to the expiry of the lease after a set period of time, in the event of unforeseen circumstances, for example, you might be arranged to leave this city by your company in an advanced timing, typically applies to a two year leasing contract with a two to three months advanced notice to the landlord.

◦ Property Status and Furnishings - ¡ütop

- Property Status

It is a common practice for the landlord to furbish the whole property, including repainting the walls, refinishing the floors and checking electrical circuits and plumbing fixtures.

- Furnishings

Appliances normally include television sets, air-conditioners, and water heaters, standard kitchen appliances (refrigerator, washing machine, dryer, cooker, water-boiler, oven and stove, and microwave).

◦ Approach to Lease - ¡ütop

- Offer Letter

AutumnLeaves will work out a Draft Offer Letter to the landlord with all of the terms that you are going to include in the ¡°Tenancy Agreement¡±. If the landlord agrees, both of you will sign the offer letter to ensure the main conditions of the tenancy agreement.

- Legal Due Diligence

AutumnLeaves will Check the landlord's legal rights to the property before you pay the initial deposit or sign the "Lease Agreement".

- Initial Deposit

Initial deposit is not common for expatriate housings, AutumnLeaves will always try to manage the landlord so that you will have sufficient time to consider the rental.

- Draft Contract

AutumnLeaves will draft a contract (iclude all relevant terms and conditions) and submit it to you and landlord for review and approval.  

- Final Official Contract    

After terms and conditions of the draft contract are agreed, AutumnLeaves will draw a final official contract for signing by you and landlord.  

- Contract Execution  

AutumnLeaves will arrange for concerned parties to sign the final official version of contract. Each party will keep an official signed copy, with additional signed copies submitted to the Shanghai Real Estate Bureau. The lease terms will be written in English and Chinese, and the Chinese version is considered the official version under Chinese law.

- Handover

AutumnLeaves will accompany you and the landlord to the property and perform a final inspection check of the premises. The final inspection will be based on a detailed due diligence list. The water, electrical, and gas meter readings will be written down on the contract.

◦ Utility Fee - ¡ütop

Generally all the utility bills (apart from the cable or satellite TV fee) are paid by the tenants, except in some serviced apartments where landlords are responsible for all the utility payment. Under normal circumstances, it is easier to pay through the landlord who will collect the monthly utilities invoice on your behalf.

- Electricity

Billed monthly, with meter readings during the month, and can be paid at the post office or the bank.

- Water

Billed bimonthly. Water must be boiled before drinking. Normally people consume water from water dispensers. Bottled water for the dispenser can be ordered by phone, and will be delivered to your home.

- Gas

Billed bimonthly. Most kitchen burners use gas. Each gas line has valves that should be turned off if you leave your home for an ex-tended period of time.

- Cable or Satellite TV

Most buildings are cable ready with plenty of Chinese channels. New and foreign housing compounds will have foreign channels like CNN and BBC, and other channels in English, Japanese, French, and German, via satellite TV.

- Telephone Lines

Billed monthly. Most buildings have spare telephone lines. Tenants may request for more telephone lines from the landlords.

- Broadband Connection

Annual service contract, you can choose to pay monthly or the entire amount at the onset of the service.

◦ Follow-up Service - ¡ütop

AutumnLeas is always are obligated to assist you with any issues after you have moved in to your home, and will retain regular contact with you to ensure your pleasant stay in Shanghai.

- Registration

• Registration with the property management
• Registration with local police station
• Registration with your country's consulate

Prior to Arrival

Visas & Permits

Orientation

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FAQ on Lease