A significant difference between privately owned rentals vs. developer owned rentals are the same everywhere in Shanghai. Generally, the privately owned rentals tend to be furnished to the local landlord's tastes, which rarely perfectly match the tenant's tastes. You might see this as either an advantage or a disadvantage.
However, with some skill your agent should be able to negotiate a compromise which keeps both parties happy; for example, if you can find an apartment where the landlord hasn’t bought furniture you could negotiate that he provide a budget for you to buy furnishings for the apartment and thereby decorate it to your taste. Of course, your landlord would own the furnishings and you would need to leave them for the next tenants to utilize after your departure.
There are varying reasons as to why prices differ so greatly in apartments in Shanghai. Firstly, if it is a developer compound then you have to look at the quality, age and style of the building, its furniture and fit outs, facilities, popularity and current availability, its location, competing properties close by and its management. These factors all go into determining the asking price.
A private landlord may not want to lower the rental due to the following reasons:
Landlord has better offers in hand,
Landlord not in hurry to rent out property,
Landlord may believe property is of a certain value,
Landlord may not want to pay full commission,
The agent’s lack of experience in negotiations,
The agents need of a high commission.
A prospective tenant’s terms and conditions of leasing will also affect the final rental price. Here’s how you can assist in getting a lower rental:
Pay rent on a quarterly basis,
Don’t request extra items,
Don’t ask to remove items,
Pay rent in USD,
Sign a longer lease term than requested,
Take the property unfurnished (if not furnished),
Commence the contract as soon as possible,
Don’t get an official tax receipt (Fapiao) unless necessary.
