1 OFFER LETTER
It is common practice to submit an offer letter to the Landlord, explaining your opinions on rent and other requirements. Both parties should sign the offer letter to confirm a verbal agreement. Once the offer letter is signed, the Tenant can decide to rent according to the terms stated, or look for additional options. After both parties agree the terms, a lease tenancy agreement is drafted.

2 THE LEASE
The lease agreement should include the names of each party, the landlord's name and address, unit size, rental rate, and duration of the lease.

3 MANAGEMENT FEES
Management fee is payable monthly to the management company. It covers the cost of maintenance, security of the building and amenities. Fee depends on the building age and facilities offered to the Tenants. It is usually 5% of the monthly rent.

4 THE LENGTH OF THE LEASE TERM
The length of tenancy may range from one month to three years, with one year an accepted standard. An option to rent beyond one year is often included in the lease, and is a good way to negotiate a lower price.

5 SECURITY DEPOSIT & FIRST MONTH'S RENTAL
Deposits are often paid upon signing of the lease to ensure unit occupation, compensation for damages caused by the tenant, or non-performance of lease terms. Should the property condition be deemed acceptable upon lease expiration, the security deposit will be refunded in full.. A security deposit is usually no more than two months' rent without accrued interest.

6 FORM OF PAYMENT
Designated bank accounts should be specified, especially in case of transactions done in an overseas account. Rental payments must be made in Mainland China in RMB. Do not forget to get a government registered/approved tax receipt upon rental payment.

7 SPECIFICS OF FURNISHINGS, APPLIANCES AND ALTERATIONS
A written list of all items provided to the premises and any unit alterations is extremely important and should be formally made part of the lease agreement.

8 ADDITIONAL FACILITIES
Health and recreation facility charges are included in the management fee in some developments. Health club memberships are also available at several clubs and hotels around Shanghai.

9 UTILITY FEES
The Tenant usually pays gas, water; electricity, and telephone charges. Inclusion of a utility allowance for these charges is sometimes negotiable.