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

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 SQM square meter (平 - 平方米）Please note that the size can be irrelevant, for example, according to Andy, a very experienced expat realtor told me, a 100sqm apartment in Shanghai would be a 80sqm Apartment in Germany. Some developer includes common area, windowsill area into 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 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 neighborhoods like the former French concession, great location, pet friendly.

  • Cons: Compound Hygiene, dated fixture conditions, maintenance challenges due to age, poor soundproof, quality of local neighbors varies. 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 landlord take a cut of the marked up rent.

• 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. Risky if chosen the wrong secondary landlord as their profit fluctuates according to demand and economic 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 is a hit or miss. 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, the type of landlord would take their best interest against you, suddenly selling their apartment kind of landlords. Therefore, a well-drafted contract is very important! The Goal here is to be reasonable.

• 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. the last two can be resolved by adding them externally.

What to Look Out for

1. Location and Facing Direction

   • Know 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 wasn’t enough sunlight; don’t be that person.)

2. Furniture and Home Appliance Conditions

   • Ensure that furniture and appliances are in good condition and meet your needs. Most brand new home appliances have a 1-3 year warranty.

3. Importance of Home Insulation and Heating Systems

   • Understand 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 Pressure

   • The 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 Types

   • Most 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 Net

   • If 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 Prevention

   • Check 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

Work with an agent with a great reputation and experience

Work with one or two trusted agents to streamline communication and avoid confusion.

It doesn’t hurt to check other agents’ regular listings 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 quality. They are usually overpriced, and the most disappointing thing is that 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 who ignored me right after the deal was done.) Agents such as StayInShanghai and Joanna Real Estate are foreigner-friendly, reasonable, and experienced.

Schedule viewings one day at a time and have the agent manage to view time effectively, take pictures and videos of those you think are potentials, and take notes of their pros and cons. Revisit (复看) the property if needed, such as at different times of the day, and observe the neighbourhood.

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!

Communicate Your Requirements

1. Clearly 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.

2. Provide references, such as pictures and videos of properties you've seen online, to help agents better understand your preferences.

3. If you do not consider anything outside your budget, don’t ask or refuse the agent who suggests seeing apartments way above your budget, as it’s likely a waste of time.

4. List what are: 1) must have, 2) nice to have, 3) non-negotiable, 4) compromiseable etc. I have seen clients who loved the apartment so much at first sight until they realised that there is no direct gym access within the compound, and that one was a deal-breaker for them.
   

Rental price and payment term negotiation:
The listed price is usually negotiable. If you see something you like, think how to knock it down 5-15%, of course that depends on the landlord’s motivation, but I have the experience suggesting a longer rent payment term, there can be a difference between paying monthly, paying every 3 months or 6 months or annually. Demonstrate 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.

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 rent as commission, while some tenants don’t have to pay any commission but the rent would be added so the realtor will get a reasonable 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.

Check the ownership of the property and landlord identities.

Both landlord and tenant will provide ID document copies and fill the information in according to a standard rental contract. Renter should request landlord provide the official original “property certificate” listing ownership, address, and property size, and keep a copy of the document for future use. If it’s rented through a secondary landlord, ensure they provide an authorization letter from the original direct landlord of the property.

Get a third-party opinion.

Consider hiring a consultant with no conflicts of interest to help you find and inspect 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 furniture, 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. Rest assured that I always prioritize your best interests.

Looking for a reliable agent?

Just reach out and let me know your requirements, I’ll be able to connect you with realtors that I worked with and trust. 

If you know any good ones for recommendation or bad ones to avoid, let's stay in touch to exchange our ideas.

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 home is hard to come by. 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!