Before we moved to Shanghai, we were told that Shanghai is very expensive. We had no doubt about that even before we arrived but honestly, there wasn’t much difference in price compared to Guangzhou, Singapore or New York. Yes, these cities are expensive but for what you expect in terms of quality, I don’t think it is overpriced. However, there are bargains to be found if you know where to look. I will share these tips along the way but for now, I’ll share a general outlook on rentals and what to expect if you’re moving or even considering to Shanghai.
Rental Commission:
The basic rule for renting apartments through agents are – If rental is more than Rmb10,000 per month, then you do not pay commission to the real estate agent. I’ve found that there are some agents who will conveniently forget to tell you but once you ask, they will usually honor this. So please don’t forget because commission can run from 30% onwards since I was last quoted. I won’t go too much into rental prices because you can find these easily online. At the end, it all depends on what you or your family’s needs are, area you’re working, where your kids go to school and what kind of transportation that you’ll be taking. Prices for a 2 bedroom 2 bath can run from Rmb 9000 upwards and also depends if it’s a very local compound, semi-local or full on expat.
Serviced Apartments:
There are also serviced apartments that you can consider but they start from Rmb20,000 and up. Of course, the further away you live from the city, it’ll be cheaper but I have found out that “local” serviced apartments run very differently from international ones, hence it’s cheaper. But if you think you can live with it (I mean, nothing is ever perfect even when you pay top dollar), it can actually be very quaint getting to know some locals and you’ll be surprised how many local neighborhood eateries there’ll be that you may enjoy! One other thing that you should do is to go directly to the serviced apartments and ask for rental prices instead of going through agents. You’ll save at least 20-30% off your rental price as this was supposed to be paid to the agent from your serviced apartment. That’s what we did our first 6 months and we ended up saving approximately Rmb3000 per month.
Negotiation:
Negotiation is key especially in China. Actually, negotiation is key to everything in China! Lol! Just ask and you may be surprised at what can be attained. For example, I was very adamant in my one year contract that I could leave after 8 months without penalty. All I had to do was to give 2 months notice at the 6th month and we were off the hook. It never hurts to ask!
What is included in your rental:
We received ton of advice from all our expat friends when we were looking for our next apartment. Some told us we could pay a huge lump sum and then the landlord will pay everything from electricity to gas. However, in our experience, we found out that landlords usually prefer not to be bothered with these “bothersome tasks” as they rather you pay the rental and sort everything out yourselves. With the rare exception of those landlords who want a lump sum and will help pay everything, we did the calculations and realized that taking out a little bit of time on our own to pay the bills made a huge difference in savings. Why? Because as expats ourselves, we sometimes have business trips and we tend to go home or vacation at least 2-3 times a year at 3 weeks at a time at a minimum. In this case, there’ll be lots we won’t be using and we will still be charged the same amount. At the end, it’s all about your individual preference.
Cleaning Ayis as they are called, are plentiful in China. Cleaning ayis who charge expats astronomically, are also plentiful in China. Some landlords do throw in cleaning service but I highly suggest you do your research and find your own. Always ask around for the local rates before paying what they ask. The majority of ayis here are famous for asking a lot and working very little. I will write another post entirely based on ayis in our experience another time, but trust me, you want someone you can trust, clean relatively well and respect you and your space.
Should I Rent a Non-Furnished or Fully-Furnished Apartment?
Throughout our 10 years of moving from country to country, we’ve tried relocating with ALL our furniture and with no furniture. To be honest, throughout it all, it is definitely more homey and familiar when you have your furniture. But before, during and after the moving process, just realize that you have more work to deal with than you bargained for. I was exhausted just dealing with this. Aside from packing things with the help of a moving company, you have to figure out which moving company is reputable, not trying to rip you off and figuring out if the service will be consistently good. One example is: When we were in Taipei, we went with Allied Pickfords. They were pretty professional and packing was great! However, when our stuff finally arrived in China, we were not dealing with Allied Pickfords anymore. They hired another local company who was a nightmare to deal with. Because of our experience in Guangzhou, we knew we had to be firm and aggressive when they became irresponsible and we had things stolen. We contacted Allied Pickfords in Taipei and our things got sorted. So that’s one more thing we learned through relocation – Make sure the original company you hired will be responsible throughout the moving process! Therefore in our case, we realized the less we have, the less we worry! 🙂
Most apartments in Shanghai come furnished. Make sure you communicate well with your agent on what your expectations are. In our case, what were important to us were having a microwave, washer, dryer and dishwasher in the appliances department. However, the landlord had everything except the dishwasher and wanted extra Rmb500 per month to provide this. Our lease is for 2 years. I did the calculations and decided it was just more worth it to buy a Siemens dishwasher for Rmb4000+. I would have paid off my dishwasher in 8 months with the extra Rmb500 my landlord wanted and I still OWN it. Lol! In short, do the math and negotiate wisely. Nothing is ever going to be perfect in life and especially in China!
One very important thing to remember is when you move to China, you only get one chance to relocate your stuff here with minimum import tax. Yes, your furniture is used but they are still liable to be taxed. But if you were to relocate back to China the second time, you’ll be taxed on all your used belongings 100%! So decide wisely if that dining table from Williams-Sonoma and your arm chair from Crate and Barrel is worth the tax.
I hope this post was helpful and informative! Thanks for reading and please share your experiences and feel free to ask questions and I’ll try my very best to help! Have a great week ahead!
PS: Pics below taken right out of our dining room.
Next topic next post: Living In Shanghai. (General ins and outs of everyday life)
redkoiart 