Key Words
Angency fees
Often referred to as "commission", this is the fee charged by all agencies for
the services of their consultants. The fee is payable on any premises leased to
you by your agent. Agents reserve the right to charge the landlord or vendor .
Air-Conditioning
An essential in Hang Zhou's hot clime in summer and cold climate in winter,
air-conditioning units are usually installed in the property by the Landlord.
Air-conditioning can be centrally installed and controllable in each room (known
as "Central Air-Conditioning"), or provided by individual units,which will be
"split-type" (usually remote controlled).
Break Clause
Sometimes the landlord will grant a clause in the Formal Lease Agreement.The
standard arrangement is for a one-year lease,the tenant can give the landlord
one or two months' written notice of his intention to leave the premises,but the
deposit can not be refunded.
Break Lease
If the tenant needs to leave the premises earlier than allowed for in the Lease
agreement, he will try to find a "replacement" tenant to take over the
lease.This can be done in one of two ways:1. The new or replacement tenant takes
over the property until the expiry of the existing lease. 2. The new or
replacement tenant has a new two-year lease granted by the landlord. In either
case, the outgoing tenant will need the permission and co-operation of the
landlord and should expect to pay the landlord's share of the agency fee
payable.
Commencement Date
The date that the Lease starts and from which rent is payable. The tenant may
move in before the commencement date if he has a rent-free period or later if he
carries out his own renovation or decoration works.
Company Lease
Where the employee's company signs the lease and is named as the Tenant. The
employee is then known as the Occupant. The company usually requires the
permission of the landlord before substituting another occupant, even another
company employee, although this is rarely opposed by the landlord. The company
is responsible for the payment of rent and associated costs.
Communal Facility
A facility, such as a swimming pool,gym or garden, shared by some or all of the
occupants in the building or development.
Decoration
The state of internal decoration of the premises. Not to be confused with
renovation. Most rental premises will have basic decoration of walls and
ceilings painted in white and polished wooden floors. Carpet is rarely fitted
due to the high levels although many tenants introduce rugs as part of their own
decoration.
Duplex
A two-storey apartment
Electrical Appliances
Unless otherwise stated, you can assume that all properties have
air-conditioning units installed. Other appliances often supplied/requested
would be a fridge/freezer, washer/dryer,water heater and a cooker. Note that
unless you specifically ask for a "Western-style cooker" you will usually be
supplied with a Chinese-style two-ring gas burner. Smaller appliances such as
DVD player, or small kitchen appliances such as a kettle are rarely supplied by
the landlord (except in Serviced Apartments). Note that even if the electrical
appliances are provided by the landlord, it is still the tenant's responsibility
to maintain, repair and replace the units. Appliances run on 220-volts and North
Americans or other conturies are recommended to purchase new appliances upon
arrival in Hang Zhou.
Estate Agent
An individual or a company that carries out the business of estate agency. In
Hang Zhou, all estate agents (individual and company) must be licensed and
clearly display their licence number on all documentation including advertising.
Complaints about an Estate Agent may be made to the Estate Agents Authority.
Estate Agents Authority (EAA)
The body set up to regulate the Estate Agency industry in accordance with the
Estate Agents Ordinance. The body acts as an educator and regulator.
Exclusive Rental
This is the usual arrangement in Hang Zhou and denotes that the Management
Fees,Government Rates and utility fee are payable by the tenant..
Facilities
Used to denote recreational facilities such as swimming pool, tennis or squash
courts, gym, children's play area, residents' shuttle bus service, etc.
Facilities are common in larger developments and usually entail a higher
management fee. The use of facilities is usually included in the rent although
additional charges may be made for tennis or squash courts.
Fully Furnished
A property which is furnished in full. A fully furnished property will usually
include basic furniture such as sofa and easy chairs, TV unit, dining table and
chairs, beds and wardrobes. Soft furnishings will include curtains or blinds for
the windows, and lamps. Items such as bed linen,crockery, cutlery and utensils
are rarely provided by landlords except in serviced apartments.
Government Rates
A property tax levied by the Hang Zhou government, rates are a tax on occupation
and are paid as at 4.5% (0<monthly rent<30000rmb) or
at 6.28% (rental>=30000rmb)
of monthly rent. These charges are payable usually quarterly in advance by the
tenant.
Hand-over
This is the procedure of handing the property from the landlord to the tenant.
At this stage, your estate agent will assist you to check the internal and
external condition of the property, check the inventory, take details of meter
readings, etc. A detailed hand-over report will be prepared and a copy given to
both the landlord and the tenant. At the end of the Lease, a similar procedure
is carried out, known as a "hand-back".
Holding Deposit
Usually equivalent to one month's rent and generally paid subject to contract
when an offer is made on a property and prior to receiving a draft Lease
Agreement. This deposit becomes the first month's rent when the Lease Agreement
is signed.Or it usually not refundable in the event that the Lease Agreement is
not signed by both parties,so paying holding deposit is not recommended in order
to avoid loss.
House
Houses are rare in Hang Zhou due to the high price of land. Most houses will
actually be "townhouses" meaning that they are attached on one or both sides to
another house within a development. In this instance, each house will have its
own garden or terrace and often a roof terrace. Detached houses are usually
found at the foot of mountain,close to Qian Tang River or at the west of Hang
Zhou; they are extremely rare and accordingly very expensive!
Inclusive Rental
This denotes that the Management Fees and Government Rates are payable by the
landlord. Unless otherwise negotiated or specified, an Exclusive Rental is the
usual arrangement in Hang Zhou.
Inventory
An itemised list attached to the Lease Agreement detailing furniture and
fittings supplied with the property. Unless otherwise negotiated or specified,
all items provided with the premises are to be left in the property at the end
of the Lease term
Landlord
This may be a single individual who owns one property in a block, or a company
which owns several units in various buildings, or a major developer who owns the
entire development.
Landlord and Tenant (Consolidation) Ordinance
This is the government ordinance that regulates the relationship between the
landlord and the tenant, and enforces certain rights and obligations on both
parties.
Lease
A Lease or lease is a legal contract between the landlord and the tenant.
Normally it lasts for one year.
Lease Agreement
This is the formal agreement stipulating all the terms and conditions of the
lease. Agreements are usually prepared by the agency and run to several pages.
Upon signing the Lease Agreement, the tenant must pay the security deposit to
the landlord. The Lease Agreement is signed by both parties, in triplicate.
Management Fees
Paid in addition to rent, these cover the cost of staffing, security, cleaning,
and lighting of public areas and are generally paid monthly direct to the
appointed management company of the building. Unless specified otherwise, the
management fees are payable by the tenant.
Occupant
Where the Lease is held under a company lease, the company is the tenant and the
employee is the occupant. The landlord's permission is required to change the
occupant.
Personal Lease
Where the individual signs the lease in his own name and is responsible for
paying the rent and associated costs.
Purchaser
The buyer of a property for sale
Relocation Allowance
Executives newly arrived from overseas will sometimes be given a relocation
allowance by their company. This is to assist in the purchase of furniture, soft
furnishings, electrical appliances and other necessary equipment.
Rent
This is the agreed monthly amount which remains constant for the term of the
lease. Rent is normally payable quarterly and in advance by the tenant to the
landlord. The rent included the usage of the furniture, house/apartment and
common space. most developments provide its own club membership included in the
rent. Normally it excludes the monthly management fees and the government
rates,Internet and utilities which may be revised during the lease term.
Renew a tenancy
If the tenant wishes to extend the lease. Renewal options or extensions have to
be negotiated separately with landlords in Hang Zhou.If landlord agree,then the
tenant normally shall give a renewal notice in writing to landlord one month
prior to the expiration of the agreement, tenant shall have priority to renew
the agreement based on the same price and requiremen.t
Rent-Free Period
As part of the negotiations, a landlord may offer a rent-free period ranging
from a couple of days to one or two months. This is much more commonly found in
a slow-moving market.
Roof
Used to refer to a terrace on the roof of a building rather than the ceiling of
a unit. A roof terrace can be private (and therefore highly sought-after) or
communal and shared by either all the occupants of the building or just those
units on the top floor.
Security Deposit
This is usually equivalent to one or two months' rent (somtimes plus, months'
management fees and government rates) and is payable by the tenant to the
landlord upon signing the Formal Lease Agreement. The security deposit is held
by the landlord for the period of the Lease and, provided that the tenant has
upheld all conditions of the Lease (such as paying the rent and bills, and
maintaining the property in good condition), is refundable after the Lease
period. Terms on which the deposit is refunded should be stated in the Formal
Lease Agreement; most Lease agreements stipulate that the security deposit will
be returned within five to ten working days after the tenant moves out to give
the landlord time to check the condition of the property and see that all bills
have been settled. Unlike many other countries, in Hang Zhou the security
deposit is repaid without interest.
Serviced Apartments
These apartments are fully furnished and fully equipped with kitchen appliances.
Maid service is usually provided on a daily basis (with the exception of Sundays
and Public Holidays) and includes general cleaning. Rents at serviced apartments
range from RMB 6,000 per month for a small unit to over RMB30,000 for a luxury
suite, and terms range from one month to two years although many developments
have a minimum term of three months.
Tenant
Under a company lease, the company is usually termed the "Tenant" whilst the
employee is the "Occupant". Landlords also grant a personal lease which allows
the individual to sign the Lease Agreement.
Term
Tenancies in Hang Zhou normally last for one year. Sometimes, landlords will
agree to a break clause which means that the tenant can give early notice of
termination, usually with 1 or 2 months' written notice to be given to the
landlord but security deposit won’t be refounded..
Triplex
A three-storey apartment
Utilities
The term used to cover the supply of electricity, gas, water and telephone to a
property. Sometimes the landlord will leave the utilities in his name (except
the telephone account); in this case the bills will arrive in the landlord's
name but must be paid by the tenant.
Leasing Conditions
Most properties are leased out in good decorative condition, furnished, and
often but not always provided with appliances which may include cookers,
refrigerators, washing machines,and air-conditioners, but excluding soft
furnishings such as carpets and quilt. Except for serviced apartments, there are
far fewer furnished apartments available, and these few are usually smaller
units with only one or two bedrooms.
Air-conditioners are essential for comfortable living during the summer months
and, if not provided by the Landlord, will need to be installed by the tenant.
There are also serviced apartments available offering good to excellent
facilities for short lease periods of three months or longer. The rentals for
these units are comparatively higher. Most have one or two bedrooms units are
available.
Rentals
Rentals are usually in Renminbi payable monthly in advance and, except for
serviced apartments, are usually exclusive of monthly management fees and
Government rates, for which an additional 10% to 15% of the rent should be
budgeted.
Deposits
These are usually equivalent to one or two, occasionally three, months' rental
and are payable to the landlord when an offer to lease is accepted. Once the
Lease Agreement is signed, the deposit is held by the Landlord without interest,
and refunded to the tenant upon expiration of the lease. The cost of any damage
or reinstatement work necessary to the apartment, other than fair wear and tear,
will be deducted from the deposit before repayment.
Lease Agreement
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.
Government Rates & Rent
Rent Rates are a form of property tax on leased accommodation, assessed by and
payable to Government at 4.5% of rental (0<monthly rent<5000rmb) or at 6.18% of
monthly rental (rental>=5000rmb). These charges are payable usually quarterly in
advance by the tenant.
Management Fee
These fees, payable by all occupants, provide for communal services such as
security guards, cleaning and maintenance of common areas and amenities. The
amount varies according to the age and number of units in a building and the
type of amenities or quality of services provided.
Agency Fee
An introductory fee of half of one month's rental is payable by the tenant. In
accordance with local practice, the agent may also accept a fee from a third
party such as the Landlord. Package details available to corporations on
request.
Utilities
Except for serviced apartments, it is the tenant's obligation to arrange for
connection of utilities such as gas, electricity ,water and telephone/fax lines.