Whilst there is oversupply of local housing there isn’t a good supply of quality properties and huge reduction from asking prices aren’t possible on popular properties. Discounts can however range between 10 to 15% of original asking price but the final rental depends on other factors. Most landlords provide a furnished property for expatriates. A second hand property should be freshly painted and any damages repaired. Electrical lines, appliances and plumbing should be serviced. Agents will usually charge a landlord and/or tenant for renewing a lease so ensure that your period is lengthy enough. Lower end rentals will require the tenant to pay commission to the agent also. You can sign a 2 year lease with an option to renew in the second year at the same rental amount or market price. Rentals prices are “asking prices”. Final rentals are influenced by a number of criteria. Below is some advice on negotiations:

Landlords
The landlord may not want to lower the rental much due to the following reasons:
• The property is of good quality
• Landlord has better offers in hand
• Landlord not in hurry to rent out property
• Landlord may believe property is of certain value
• Landlord may not want to pay full commission
• The agent’s lack of experience in negotiations
• The agents need of a high commission

Tenants
A prospective tenant can get lower rentals if they follow some of the advice below:
• Pay rent on bi-monthly quarterly basis
• Don’t request extra items
• Don’t ask to remove items
• Pay rent in cash
• Pay rent and deposit as soon as possible
• Sign a longer lease term than one year
• Take the property unfurnished (if not furnished) and furnish yourself
• Commence the contract earlier than originally requested
• Don’t get and official tax receipt (Fapiao) unless necessary

Adrienne Farrelly
Shanghai Properties
http//www.shanghaiprops.com