FAQ -- Agency Commission

• What is the standard payment schedule and leasing term for Beijing properties?
  
  The most common rental payment schedule is one month rental deposit plus three months rental payment in advance. In addition, the minimum standard leasing term is either 6 months or 1 year; depending on the property (serviced apartments are even more flexible with leasing terms).
  
  Please keep in mind that the standard payment schedule and leasing term caries depending on whether the property is privately owned or owned by a property develop. Final terms can vary after negotiation.

• Who pays the agency commission?
  
  In China the commission is paid by the landlord. Our agency will be in charge to negotiate our commission which is normally equal to one month of net rental. Our services to you are free of charge!

• What are common things included in the rental price?
  
  All taxes, major appliances, property management fees, satellite TV fees, lighting, curtains or blinds and heating are normally included. If the apartment comes furnished, usually the rental price also includes a television, DVD player, microwave, refrigerator, washing machine and several free-standing lights. A clothes dryer (not available in smaller budget apartment), oven, and hot water machine are often included in higher-budget apartments. The Gym Membership could be included depending on your budget.
  
  Serviced apartments should also include 24-hour concierge, regular cleaning and laundry services, gym/club membership, broadband connection, and satellite television in the monthly rental price.

• What are common things not included in the rental price?
  
  Electricity, water, and internet connection is normally paid for by the renter according to usage. Club/gym memberships are also additional costs to the rental price.

• Can the apartment come furnished?
  
  The majority of Beijing apartments come fully furnished. However, most private developers and landlords don’t mind removing their furnishings to accommodate your needs.

• Can I get foreign TV channels in my property?
  
  Depending on your building and the management regulations you will get some foreign channels. Basically the more your budget is higher the best chances you have to obtain foreign channels. In some compound you will also be able to apply for a monthly fee in order to obtain more TV channels. The use of private cable is also widely used but until now illegal. Here are some examples of TV channels available in Beijing: CNN, HBO, CNBC Asia Pacific, NHK-WORLD PREMIUM, CHANNEL [V], STAR SPORTS, ESPN, Phoenix TV Chinese, NGC Asia, BBC WORLD,TV5.

• Do many landlords allow pets inside accommodations?
  
  Depending if you rent a villa or a service apartment the approval can be different. Actually, more and more landlords do agree to let you have a pet in their property but this has to be specified inside the contract in order to avoid conflicts. Advice: Do not go to visit accommodations with your pet because this could in fact make the landlord to refuse your offer.

• What are the regulations for pets in Beijing?
  
  According to January 2009 new regulations, all dogs needs to be registered in Beijing. Cats and other pets are for the moment not concerned with any particular regulations. By Law, all dogs have to be registered at your local police precinct (pai chu suo) as soon as you arrive in Beijing. More and more rounds of enforcement by the police are ongoing in order to ensure public health. These rounds of enforcement are normally stepped-up before major holidays. People living inside the 5th ring road and within these districts : Chaoyang, Dongcheng, Xicheng,Chongwen,Xuanwu, Haidian, Fengtai and Shijingshan must register dogs which are no taller than 35cm from ground to shoulder. The price to register your dog within the 5th ring road is RMB 1,000 for the first annual registration and RMB 500 for renewal. Please visit that following website if more details needed: www.globypetrelo.com

• What are common tricks to look out for in the contract?
  
  It is very important indeed to carefully check your property contract in China due to many abusive contracts clauses that can cause you to move out without notice or will make you pay things that are not supposed to be paid by your side according to the P.R.C laws. The property selling market has been and is still very hot in China, so for that reason many landlords will make you leave their property in order to sell it. This clause of non eviction during your lease term is a very important clause to input. Renovation in older apartment as well as new apartments can make your life a nightmare. Therefore, it is advised to add a clause in order of very loud and long renovation next door in order for you to be able to leave for a new accommodation without losing your deposit.

• What are the advantages and disadvantages in signing a long-term lease?
  
  Again, the rental prices of real estate market in Beijing have been increasing steadily for the last 10 years (5 to 10%/ yearly) which make the tenants to renegotiate every year his rental. One of the good points of renting for a longer period (2-3-4 years) will be that you can keep the same of relatively same rental during these years as well as avoid you to move constantly. The only disadvantage that often comes with it is that you will have to deposit more than one month (2 or 3 month). Another disadvantage could be that if you want to move out from your accommodation during your lease contract, then you will face the problem of losing all or large part of your deposit (Important to negotiate a clause allowing you to break the contract after one year without losing your deposit). In conclusion, if you do have the cash flow for it and don’t damage major things in the accommodation, this will avoid you to move locations to locations every year and save you some money.

• If my landlord sells my apartment while I’m still living in it, what happens to me? What are my rights?
  
  If you did not include that clause of non eviction within your contract, the landlord as the right to claim his property back for living. In fact, you are asking if he does sell it; well the landlord will often lie on the fact that they want it back for selling but for their own use. Very hard to prove and therefore time consuming if wants to get the rights to keep living with in that same property. Protect yourself with your contract!

• If something unexpected happens and I need to break my contract, how can I do so and still get my security deposit back?
  
  If you do break you contract and especially during the first year of your stay, it will be very difficult to get back any of your deposit. Except if the landlord is very nice, it is in his right to keep that deposit in compensation for lost that he might encounter. Most of the longer term contracts will include a clause saying that if you leave after one year you can still get your deposit back.

• How and when do I get my security deposit back once I have moved out of the apartment?
  
  Basically, the deposit should be return within the day that you have done the check out with your agency. Most of the landlord will respect the full repayment of your deposit quite easily. However, we do at Scout Real Estate advice you to take pictures of any potential damage claim that the landlord could deduct in the future while doing the check in. This will avoid any potential future argue. Any holes in the wall for painting or other purposes should be first agreed by the management and the landlord in order to also avoid reimbursement claims in the futures.

• Where can I find a trustworthy/reliable ayi and driver?
  
  Many ways exist for you to find your ayi or drive in Beijing. You can ask around for your colleagues that might leave china and have ayi and driver available or you can ask your agent to help you with it. Scout Real Estate is offering those services for all his clients.

• How long does it take to register my residence with the local police station? What do I have to do?
  
  Any foreigners which arrive in Beijing even for short stay will need to go and register himself at the closest Police station close to his new accommodation with in 24Hours. You just need to have a copy of your lease contract plus your original passport as well as a residential prove letter from the management office of your building.

• How can I best prevent the Beijing pollution from invading my home? What kind of air purifiers are the best for dealing with Beijing pollution?
  
  Beijing pollution is in fact a major concerned for many foreigners living in town. Even though the pollution level has been reduce since the Beijing Olympic Games, it is still recommended to buy some products or plants in order to avoid the contact with daily pollution. Some machines like IQ Air machines (www.iqair.com) can help you at home or work to beneficiate from a better quality of air. It is also recommended to buy some kind of plants that can reduce the pollution inside your accommodation or office. “The Living Room Plant” – Areca Palm Chrysolidocarpus lutescens. “The Bedroom Plant” – Mother-in-law’s Tougue Sanseviera trifasciata. “The Specialist Plant” Money Plant Epipremnum aureum.

• Is there any shuttle bus for kids to school?
  
  Depending of the place you are staying and the school location, it is important for the families with kids to ask their agent either or not there is available shuttle bus to your chosen school. Most of the major school will have their own shuttle bus going to major places in order to collect kids.

• What comes with a normal apartment or villa in terms of kitchen or laundry supply?
  
  Basically, except if you are renting a serviced apartment you will be given very little cutlery, laundry or cleaning supply. It is therefore well advice that you organize yourself very well at first with either your agent or yourself to go at Ikea or other shops to buy your first necessary kit before moving in.

• How long is the process to find a house in Beijing?
  
  With Scout Real Estate we do act in two step. We will firstly show you around the city and the potential compound that you could be interested for your budget and of course requirements. Then once you have decided about your favorites location, then we can focus on those once and find you the best deal as we can. This process should not be more than 5 days to 7 days (negotiation with the landlord included). However it is recommended for all house seekers to start the search of their house as soon as they can. 5 to 6 weeks prior to moving will be necessary in order to get time and more choices in your future home.

• How do I set up my telephone, internet, water and other utilities?
  
  Scout Real Estate team will set up everything for you before you move in. On your moving date, we will help you better understand where you can go to pay for your internet and utilities bills.

• Is it possible to include utilities fees inside my lease contract?
  
  Depending on the negotiation with your landlord, water, gas, electricity and other fees can be included inside your lease contract. However this can also depend either or not your landlord will be willing to take care of those monthly payments or not for you. Normally a monthly amount will be agreed upon the tenant and landlord for whom the landlord will be paying for you. If you overpass that amount you will have to pay for it yourself. However, note that if you did not reach that amount, the landlord will not refund any unused portion of the utility subsidy.

• Why do I need to ask for “Fapiao”.
  
  A “Fapiao” also called receipt has to be asked to your landlord if required by your company. In fact, that “Fapiao” is a tax receipt for fund paid. This paper with the amount of your payment will be a prove of your payment and then ensure that value added tax (VAT) on a transaction has been paid. Without that “Fapiao” you will not be able to declare your spending into your accounting.

• How can I include parking space, house-keeping and gym club in the lease?
  
  Parking space, house-keeping and gym could eventually be included inside your rent. However, a cost will be added to your rental. For example, the parking space could be of around 1000 RMB per month due to the fact that landlord did not get a parking space for free while buy their apartment. Few landlords actually buy parking spaces and therefore you will have to pay the management company every month. Regarding the house-keeping, very few apartments provide a fixed number of cleaning days. Except for services apartments, you will have to find yourself or with your agency some ayi to come few time a few for cleaning your property. The Gym club that most of the time is included inside the lease can sometimes also have to be negotiated. In fact, the gym club membership as to be paid to the club management and is rarely free for tenants. Therefore, all those extra can be included inside your rental, depending on your agency negotiation with the landlords as well as your budget limitation.

• Why the rental could be much lower in new compounds?
  
  The landlords of that new compound will be facing heavy competition in order to rent their property; therefore there will be willing to give away their property at a cheaper price. However, most of the time the tenants moving in that new condo will be experimenting a lot of noise from neighbors renovation and moving in as well as lack of good management. The only good point will be the price plus the chance to choose your own furniture.