Real Estate Matters – Common Misconceptions | About Renting A Property In Macau – Part 1
Juliet Risdon
After many years of handling rental transactions we would have to be completely blind not to see some recurring patterns amongst tenants, especially when people first arrive in Macau.
This list of common misconceptions may look innocent enough, but the difference in expectation is usually the source of major rental conflicts, something that could be easily avoided with a little more clarity up front.
When you consider the rental process usually involves at least two different languages (sometimes three), its not surprising that misunderstandings are commonplace.
Bearing this in mind, it is wise to get all agreements in writing prior to signing a final contract.
What are some of the most common misconceptions?
I can take my time to look for an apartment…
The turnover of apartments in Macau is extremely fast. As supply is low and demand is high, there is a constant battle to find and confirm a suitable apartment in which to live before someone else takes it.
Whilst planning ahead is important, the best time to find an apartment is a maximum of four weeks ahead of your scheduled move date, although two weeks ahead is a more usual scenario.
Owners will generally refuse to hold a property for more than four weeks unless there is compensation for the amount of rental income being lost whilst an apartment stands empty.
I need a gym and a pool…
Apartments offer a wide range of amenities to attract occupants.
The more expensive apartment buildings offer amenities like fitness facilities and pools, whilst other apartments might offer appliances such as washer/dryers and dishwashers in the unit.
Landlords often have to pay more and therefore charge more for these amenities, so it makes sense for potential tenants to consider carefully whether or not they will really make use of them?
An alternative is to join one of the hotel health clubs that offer monthly memberships. It may work out cheaper in the long term.
The cost of moving in will be minimal
When you hear the monthly rent you might need to take a seat and catch your breath, and in some cases the move-in fees may cause permanent heart failure!
As a standard requirement, you will need the equivalent of four months rent when moving into a new apartment.
You will be paying for the current month’s rent, and this will either be the ‘pro-rata’ amount if you are moving in midway through the month, or it will be a while month’s rent with the rent due on the moving-in date every month.
You will also need to pay a refundable security deposit usually equal to two months rent that is held by the landlord or representative in case of damages or breakages in the apartment.
Finally you will also be required to pay an agency fee / finders fee if you are using an agent to find an apartment, and this is usually equal to one month’s rent.
A word of caution here on utilities: Some things may be covered in the rent, others not. Ask if cable TV and trash removal are covered ? Tenants usually pay on a consumption basis for utilities.
The agent is working for me, the tenant, not the landlord
Real estate agents have different practices around the world.
In Macau there is a particular need for collaboration in such a small community, and the parties on both sides pay agency fees.
It is the usual practice in most countries that different agents represent the owner and the tenant.
It is also fairly commonplace that whilst the agents are different, they may be working for the same company.
Then again there are times when the same agent is working with the owner and the tenant, effectively acting as a ‘broker’ in the arrangement. Whilst this is less common, it is better to clarify this with your agent when negotiations start, just so that you are clear on the agents role.
Continued next week…….
Juliet Risdon is a Director of JML Property and a property investor.
Having been established in 1994, JML Property offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
info@JMLProperty.com
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