Real Estate Matters | The rental process for tenants part 2 – Securing your apartment

Juliet Risdon

Juliet Risdon is a Director of JML Property and a property investor.
Having established the company 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.

Welcome to Part 2 of the ‘Rental process for tenants series’
Last week we discussed how to find a property. This week we look at what you have to do to make it yours;
The process is broken into 3 sections:
– Fees
– Deposits
– Documentation

Fees:
If you have used an agent to find the property and accompany you on viewings, you will have an agency fee to pay prior moving in to the apartment.
In most cases the agency fee is the equivalent of 1 month’s rent. Some agencies charge more, and you may find ‘discount’ agents eager to close a deal that will consider a lower fee. Most credible full service agents will charge the 1 month fee.
In some cases you may need to contribute to a small building management fee to get the communal areas cleaned and maintained. In the larger buildings with a dedicated building management team, this is usually covered in the rent and paid by the owner. However in older buildings, it may simply be a case of sharing the payment for someone to sweep the stairs.

Deposits:
2 months’ security deposit is normal when renting an apartment. To secure and hold the apartment for a short period of time, you would usually pay 1 month’s deposit immediately. The second half of the deposit can be paid later to make up the 2 months security deposit.
You will also be required to pay the current months rent in advance. For some owners this means a whole month, and for others the remaining part of the month (from the move in date to the end of the month).
Combined with the fee outlined above, securing an apartment will require the equivalent of 4 months’ rent. You will not be handed the keys of the apartment or allowed access until all of these fees are paid and the correct documentation process is completed.
A point to note is that if you return the apartment in the same condition in which you entered, the 2-month Security Deposit should be returned to you.

Documentation:
There are two types of documentation in these transactions. Firstly the documentation you need to provide as a tenant and secondly the documentation you need to sign.
Documentation to provide:
– Copy of your passport or Macau ID
– A copy of your employment contract or letter confirming employment
– A copy of your Blue Card or Blue Card Receipt
– Sometimes references are requested
Documentation to sign:
– 3 copies of the tenancy agreement
There is also a third category. This is Documentation to receive, such as copies of invoices, and of course do make sure you are given a receipt for any monies handed over to an agent or Landlord directly.

Next week join us to take a look at Part 3 “The process of moving in”.

(Based on a similar article originally published March 2014)

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