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Rental Contracts in China |
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Renting in China can be a complicated exercise. As in many places, the process can be complicated and the language barrier can lead to some real misunderstandings. The usual result is that you, as the foreigner, can end up paying more than you expected. Using an agent to help you through the process can avoid some of the common problems. If not, it may be worth working with a relocation specialist who will help you through the process.
*Bear in mind that even if the Chinese copy of the contract has a translation into English, the Chinese version will be the one used as reference by a court in the event of a dispute.
There are short term (<6 months) and long term (>6 months) leasing contracts in China. Usually to rent an apartment you'll need to rent for a period of at least 6 months but preferably a year. Most owners sign a 1year leasing contract. It is possible to have short term leasing contracts but it depends on the owners and the terms are usually different e.g. rents are usually more expensive.
Payment of the rent
Rent is normally paid in RMB, in cash, a month in advance. In some cases, you can do a money transfer but you will need to open a bank account in a Chinese bank. Rental prices do not include utilities. Usually you need to add Management and tax fees.
Rental deposits in China
Owners usually require 2 months deposit and the first months rent in advance when you sign a long term leasing contract. The receipt for the deposit is called shouju(收据) and is a written recognition that the landlord has received the money. 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.
Deposits are paid back the last day of your leasing contract after you and the owner have checked the apartment. If you break the leasing contract before the end of the leasing date, the owner will keep your 2 months deposit.
Management Fees
The Management fee is payable monthly to the management company of the estate you rent. It covers the cost of maintenance, security of the building and amenities. The fee depends on the building age and facilities offered to the Tenants.
Inspection
Before moving in, ensure the space is cleaned and all appliances are in working order. The inventory when you move in should be carefully checked as anywhere in the world. A comprehensive description of any anomalies is made and signed by all parties.
The water, electrical and gas meter readings should be written down on the contract.
Tax receipt
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