Renting an Apartment in Shanghai: A Comprehensive Guide for Expats 2024

As an expat living in Shanghai for over 13 years and having experienced the nuances of apartment hunting in this vibrant city, I've learned a thing or two about navigating the rental market. In this guide, I'll share my insights into the types of apartments available, key considerations when choosing a rental, and practical tips to streamline your apartment search process.

Types of apartments for rent explained

1. Serviced Apartments

Shanghai has been a popular destination for expatriates in China for decades. There are many serviced apartments available to cater to the needs of corporate employees and assignees. These apartments are more focused on business-to-business services, have a strong expertise in taking care of newcomers, and some are flexible with long and short-term leases. Additionally, scheduling a visit and getting a tour of these serviced apartments is relatively easy.

e.g. IFC, Asscot, Riverdale Residence etc. to name a few

• Pros: Prime Location, Convenience, amenities, and services provided, like a hotel, high security, and official business fapiao provided (a Chinese invoice, tax receipt for reimbusement/company accounting)
• Cons: Higher cost than other options (rent per sqm), limited flexibility on furniture customization,
• some of them offer furniture rental for extra cost so you can pick the furniture you like, it doesn’t feel like a home, like a hotel.

2. Villas

There are some well-established gated villa or townhouse compounds located in the suburbs like Qingpu, Minghang, Jinqiao or Kangqiao area, which are in close proximity to international schools. These compounds can be owned by either developers (who act as direct landlords and offer leases only) or private landlords, who usually have a caretaker authorized to show interested tenants around.

e.g. Green Valley Villa, Leewah Villa, Rancho Santa Fe etc.

• Pros: High maintenance standard, highly secured, very family-friendly, International community, English-speaking staff, great amenities, Spacious

• Cons: far away from the city downtown, high budget from 50k rmb up
• Furniture rental option is usually available

3. Apartments from Private Landlords and Secondary Landlords

Most rental properties for expats and non-locals alike have various types of apartments. The area unit we use is square meter (平 - 平方米-sqm）Please note that the size can be irrelevant, for example, according to a very experienced expat realtor told me, a 100sqm apartment in Shanghai would be a 80sqm Apartment in Germany. Some developer includes the common area and windowsill area in the listed SQM. The factors of rent are location, condition, compound amenities, market price, landlord asking price, etc. Here are different levels of typical rental properties:

• An apartment within a well-established gated compound with a cluster of apartment towers includes clubhouse amenities shared with the resident community. e.g. Central Residence, Ambassy Court, Lakeville to name a few.
• Local Chinese Apartment buildings with elevators
• Local Chinese Apartment buildings in compounds without elevators (usually 6-story tall)
• Historic Lanehouses, usually in the downtown area, living conditions vary (some are still in wood structures), usually 3-4 stories tall, some with loft or penthouse attic designs.Pros: Unique charm and character, often located in historic neighbourhoods like the former French concession, great location with many stores, bars and restaurants around the neighborhood, pet friendly.Cons: Compound Hygiene, dated fixture conditions, maintenance challenges due to age, poor soundproofing, varing quality of local neighbors. Pipes might freeze when temperature dropped below freezing point.

Secondary Landlords (二房东) are very common in Shanghai, which means a company has a team to look after private landlords’ properties. They renovate the apartments with better-looking designs and furniture (they also buy home appliances and furniture in bulk, so some of the flats have identical decor). The apartments can belong to a company or different private landlords. Still, these private landlords appoint and pay the contractor (secondary landlords) property management fees, design and renovation, and secondary landlords take a cut of the marked-up rent as well as the commisison.

• Pros: Often more affordable than serviced apartments, flexibility in lease terms, modern and often newly renovated with brand new home appliances
• Cons: Limited amenities and services, potential issues with maintenance and management. Quality of secondary landlords varies, as their profit fluctuates according to demand and financial status, scams or run-off may happen.

Private Individual Landlords are the owners of the property. They can be picky, and they usually work with multiple realtors, first come, first serve, and negotiation can go either way depends on the motivation of both parties. We say this has to do with “fate destiny” Either you found a very accommodating, kind and easy-going landlord, or you find a harsh, difficult-to-communicate type of landlord who would take their best interest against you, suddenly selling their apartment, refuse to return you deposit kind of landlords. Therefore, a well-drafted contract is very important!

• Pros: Often even more affordable than the apartments by secondary landlords
• Cons: Communication barriers, maintenance responsiveness, most landlords don’t speak English. Dated decors and home appliances. It usually doesn’t come with floor heating, a dishwasher, or an oven while the last two can be resolved by adding them externally.

What to Look Out for

1. Location and Facing DirectionKnow the distances to subway stations, your work, and what’s nearby.Direction and floor height determine the amount of sunlight and airflow in your home. (I have heard someone rented an apartment that he didn’t know there was insufficient sunlight, and regretted it right after moving in; don’t be that person.)
2. Furniture and Home Appliance ConditionsEnsure that furniture and appliances are in good condition and meet your needs. Most brand new home appliances have a 1-3 years warranty.
3. Importance of Home Insulation and Heating SystemsUnderstand the differences between air conditioners, wall heaters, and floor heat systems for comfort and efficiency. I have heard someone point out that the quality of the air conditioning tells a lot about what kind of landlord you get. Also, “double glazed window” IS A MUST!
4. Water PressureThe most overlooked factor is ensuring a comfortable shower and ensuring the water pressure is acceptable; if not, request the landlord install an electric water pump.
5. Utility TypesMost of the residential buildings are using the “residential utility rate （纯住民水民电）”. However, some buildings are commercial and residential combined; make sure you check with landlords and know the type, as utility costs will be much higher if it’s not purely residential. Factor that in. Tip: The residential utility rate is half-price between 10 pm and 6 am (valley hours), and its original price is 6 am to 10 pm (peak hours). With 3 tiers of prices depending on the consumption level (household per year), usually, the price peaks at year-end if it exceeds the consumption level throughout the year.
6. Mosquito NetIf the apartment is below 10th, make sure there are mosquito net installed in all windows, there are some seasons with extra bugs, termites, cicaders season is not a joke!
7. Mold and Leaking PreventionCheck for any signs of mold and watermarks, especially in bathrooms and areas prone to moisture buildup. I am highly allergic to it, I can smell it the moment I enter the house, and I would quit as soon as I smell it, no matter how beautiful the apartment is. (I have heard tenant was forced to break their contract to move because mold is harzadous to health and the landlord refused to take care of the mold situation, avoid that!)

Tips for a Smooth Apartment Hunt

1. Work with an agent with a great reputation and experienceWork with one or two trusted agents to streamline communication and avoid confusion.It doesn’t hurt to check other agents’ regular listing to get a sense of what price can get what kind of rental apartments but only choose 1, maximum 2 to compare their knowledge, service and expertise. Common mistake: The more agents don’t give you more apartment options, all you need is 1 vouched and trusted realtor who can understand your requirements and is well-connected with landlords. In my opinion, I would avoid local agents from Lianjia, Beike or Ziroom due to their inconsistent service and agent’s quality, and usually overpriced and, the most disappointing thing is they rarely put your interest first.Ask for the “latest” pictures and videos of the property before viewing (otherwise, it will be a waste of time as sometimes landlords and realtors still use dated pictures and videos from years ago). Also, ask how long the properties have been on the market for, the longer it stays on the market, the less desirable or less motivated landlords, high quality properties come and go fast!Choose agents based on their reputation and other add-value services they can provide (I encountered some agents ignored me right after the deal is done.) Agents such as StayInShanghai, Joanna Real Estate are foreigner friendly, reasonable and experienced.Schedule viewings one day at a time and have the agent manage viewing time effectively, take pictures and videos of those you think there are potentials, take notes of their pros and cons. Revisit (复看) the property if needed, such as different time fo the day, observe what the neighborhood is like.A good agent can show you ready-to-move-in apartments within days, so don’t rush. Usually, you will find something you like within a week, given that the agent understands your requirements well and your reasonable expectations. If you think your agent still doesn’t understand your requirements, ask me!
2. Communicate Your RequirementsClearly outline your budget min-max range, the desired number of rooms, preferred location, and any specific features or amenities you're looking for; inform the agent if you are a pet owner.Provide references, such as pictures and videos of properties you've seen online, to help agents better understand your preferences.Some agents would suggest seeing apartments way above your budget to try their luck; you can decide to have a look or refuse to avoid wasting time if you do not consider anything way above your budget.
3. Rental price and payment term negotiation: The listed price is usually negotiable. If you see something you like, think about how to knock it down 5-15%. Of course, that depends on the landlord’s motivation, but I have experience suggesting a longer rent payment term, 2 months of deposit instead of 1; there can be a difference between paying monthly, paying every 3 months or 6 months or annually. Demonstrate that you are a great choice of tenant as you would pay rent on time, have a stable job with your company, hire cleaners regularly to maintain the property condition, etc.
4. Having a very clear contract, read it through and understand the terms.Know what is included and what is not. Some landlords are open to accommodate your needs in furniture and home appliances. Clarify the payment terms with the landlord and realtor, understand the deposit, who pays the commission, and how much. Some realtors require tenants to pay 35% to one month's rent as commission, while some tenants don’t have to pay any commission, but the rent would be higher, so the realtor will get a better commission from landlords. If you break the contract you will lose your deposit, the deposit is usually 1-2 months rent of the apartment. Keep ALL rental contracts, you may need them when applying certain documents with the police when leaving China
5. Check the ownership of the property and landlord identities.Both landlord and tenant will provide ID document copies and fill in the information according to a standard rental contract. The renter should request that the landlord provide the official original “property certificate” listing ownership, address, and property size and keep a copy of the document for future use. If the property is rented through a secondary landlord, ensure they provide an authorization letter from the original direct landlord of the property.

Get a third-party opinion.

You should consider hiring a consultant with no conflicts of interest to help you find and look over an apartment. With my expertise and experience, I can accompany you to view available apartments, meet with landlords, help you understand and review the lease agreement, assist with settling in, purchase additional items, and set up Wi-Fi and TV. Additionally, I can help you go through the utility meters, set up payment methods, and find out how courier packages and garbage disposal are handled. And yes, I can also arrange affordable, experienced and efficient local movers. I always prioritize your best interests.

“I recently had to move while suffering from an injury during the spring festival holiday. Genie helped by arranging a mover and driver for a low price and identifying hot spots in my new neighborhood. Additionally she helped me set up things in my new apartment such as wifi and the power since i was having fuse box issues. It would have been difficult to do any of this without her assistance. I highly recommend using Genie as a consultant for any of your needs.” -CeeJay

I hope this article is helpful to you so you'll be better equipped to navigate the rental market in Shanghai and find the perfect apartment that suits your needs and preferences. Ideal homes are hard to come by, and a keeper might require certain compromises.

My apartment hunting motto: Always ask at the first impression, “Can I picture myself, my family, or even my pet enjoying living in this space?” If it’s a yes, then dive into the details.

Happy apartment hunting!