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Guidelines for Rent and
Lease
Rental Rates and
Costs:
1. How are rents quoted and paid?
Rents are quoted in RMB (Chinese currency) per month, and usually are
paid monthly in advance.
2.
Is security deposit required?
A security deposit of 2-3 months rent, rates and service charges
is usually required and is refunded at the end of the term without
interest. Bank Guarantees are sometimes accepted.
3.
What is typically included in the
rent?
The rent included the usage of the furniture, house/apartment and
common space. most developments provide its own club membership
included in the rent. other costs include, managements fees which
most of time included in the rent already, electricity and other
utilities. these additional charges may be revised during the
lease term.
4.
What does the service charge cover?
Service charge typically cover maintenance, use of communal
facilities, security and leaning of the common areas and base
building systems.
5.
Who pay for the brokerage fee?
Landlords usually pay the fee.
6.
Do landlords provide any incentives?
Incentives typically are limited to a rent-free period, provision
of white goods/furniture and varies depending on market
conditions.
Lease Term:
1.
What is the typical lease term?
Usually one year fixed lease. There are some service apartments
available offering fully-furnished suites for short periods(1-6
months), most two year leases will include a tenant's break-clause
allowing the tenant to give 2 or 3 months written notice at any
time after 9-10 months of the lease. This means that tenants have
a minimum stay of 12 months without incurring a penalty should
they decide to leave.
2.
Do tenants have automatic renewal
rights?
No, renewal options or extensions have to be negotiated separately
with landlords.
3.
What is the process to renew a
tenancy?
The landlord issues written notice to the tenant between 2 and 3
months prior to the expiry of the tenancy to indicate their
intention regarding renewing the tenant. Within 2 months of
receiving the written notice to tenant has to use written reply to
accept or refuse the new tenancy. negotiations of the new terms
can take place right up to the expiry of the old tenancy.
4.
Do tenants have automatic sublet or
assignment rights?
No. The right to assign the lease to a third party is rarely
granted.
5.
What is required at the commencement
of the lease and what costs are associated with it?
On commencement of the term, the tenants is responsible for
payment of the security deposit , the first month's rent,
management fees which usually covered by monthly rent already.
6.
Is it possible to terminate lease?
What is the process and there penalty?
Normally, there are break lease rights within the contract. early
terminations prior to being able to enact the break-clause have to
be negotiated with the landlord who may ask for payment of a
penalty or the introduction of a replacement tenant.
7.
What kind of the replacement occupant
is acceptable under the same lease?
Tenant retain the right in the event of occupant being transferred
to another location or leaving the company and upon reasonable
prior notice to landlord, to nominated the another employee of its
company as a replacement tenant, at the conclusion of a lease
term.
8. What is the process for handling back the
property?
At the end of the lease, the tenant is responsible for reinstating
the premises to the same condition as it was at the commencement
of the term, subject to normal wear and tear. Landlords will
prepare an inventory of the condition of their premises and the
list of landlords fixtures and fittings at the commencement of the
term.
9.
Does the tenant have the right to make
improvements?
A request must be submitted to the landlord and approved before
the work begins. Typically Landlord Redecoration and Utilities
Supply What decoration work are most landlord's expected to do
prior to handover. Prior to the handover of the premised to the
tenant landlords will undertake to do the following works: Sand and
polyurethane wooded floors -most houses/apartments have wooden
parquet or strip wood following. It is standard to sand them down
and polyurethane with gloss finish.
Repaint all walls and ceilings-walls and ceilings are generally
finished in plaster and walls painted off-white whereas ceilings
are stark white. Check all electricity wiring, appliance and gas
appliance and all sanitary and water apparatus are in good, safe
and working condition-most landlords will supply all white goods
as well as air-conditioning units, this ensures that they have
been well maintained. Most landlords will expect the maintenance
of such appliance to be borne by the tenant. fair wear and tear is
usually included in the tenancy to ensure any older, non working
appliances are replaced at the cost of the Landlord. If carpets are
provided by the Landlord then they should be deep cleaned prior to
handover.
10.
What is the electrical power?
200 - 220 volts, 50 cycles
11.
Are utilities connected and included?
Landlords shall read the meters as a new record when tenants check
in. Utilities are usually connected but tenants will have to
change the name of the occupant. Except in some serviced
apartments the landlords are responsible for the payment of the
utilities. All utilities are charged monthly.
12.
What is the process for applying for
telephone lines?
Most buildings have more spare telephone line. Tenants may get one
more line after signing the application form to the landlords. Other
13.
Who is the typical landlord, for
example, a large institution, insurance firm, individual, etc?
It varies to a large extent, although the major landlords with
extensive residential property portfolios are major Hong
Kong-based property developers. There are also many individual
owners who have plenty of residential properties in apartments and
villas.
14.
Are expatriates clustered in certain
areas?
Most expatriates prefer to live in the downtown area which is the
prime location with a quiet environment. For those with families,
particularly if they attend the ISB school, WAB or some other
foreign schools, then the Shunyi and airport road Area popular,
where most of the villa properties are located.
15. How important is the reputation of the
owner, for example, do you only recommend certain owners or
developers?
With the major landlords providing excellent management of their
portfolios it is beneficial to lease a unit in one of the single
owned buildings, however there are a number of reputable smaller
landlords.
16. Who manage their property well? What types
of properties do expatriates typically occupy? for example, high
rise buildings or low rise buildings?
Major residential buildings in Beijing are fairly new and in
downtown area, most properties are high-rise.
17.
Are Sports and recreation clubs easy
to join?
Most clubs offer preferred membership to those who are prepared to
play competitive sport. The clubs are usually very friendly and
offer an ideal opportunity to meet new friends. Most are close to
the main foreigner's residential area.
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