Real Estate Matters | The top 25 questions we are asked about Macau property – Part 3 of 5

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.

15. Question: I’m only here for 3 months, can I rent an apartment?
Yes, it is possible, but unlikely.
There is usually great difficulty attached to renting an apartment for less than 6 months. Most owners consider it too much trouble, and many agents refuse to handle such short leases.
However, it is possible to rent for shorter periods using a Corporate Rental program.
Under the program, the rental agreement is signed under the company name, and the agreement provides the tenant with more flexibility than a traditional long-term lease.

14. Question: Where can I find a good home decoration company?
There are many good interior designers in Macau. The secret of course is finding someone that shares a similar taste to your own.
Some of the more popular furniture stores in Macau such as ‘Area’ in Ocean Gardens, Taipa and WH Furniture in old Taipa and Macau also offer design services.
At JML we handle renovations on investment property for clients, but do not take on home furnishing projects.
We usually recommend Kelly Sou of WH Furniture, who has handled projects for many local and foreign buyers over the years.
Kelly has a good reputation and excellent language skills, which makes it very easy to communicate with her.

13. Question: What happens if I don’t pay the rent?
Not paying rent is a bad idea in Macau.
Once a rent is overdue for 9 days or more, the landlord is entitled to charge a late fee premium of 50% of the rental amount.
If a rent remains overdue for 30 days or more, the landlord can now charge a late fee premium of 100% of the rental amount. In other words, once a rent is 30 days late, you would now owe DOUBLE the normal rental amount.
This is why it is so important to pay rent at the end of a tenancy agreement.
The 2-month security deposit cannot be used in lieu of rent, and if you don’t pay rent for the last 2 months, the debt owed will be equal to 4 months rent.

12. Question: What’s the difference between gross and net area?
The NET area is the area inside the walls of the apartment that can be used by the occupants.
The GROSS area is the net area PLUS a proportional amount of the common areas of the building such as the lobby, lift space and recreational club.
The net area in modern buildings with recreation facilities is usually around 70% of the gross area. This is sometimes referred to as the ‘efficiency’ or the ‘ratio’ of the building.

11. Question: What happens when the leasehold runs out on my property?
The leasehold property in Macau is under Portuguese law, and the leasehold is until 2049 (2 years after Hong Kong).
Leases ending earlier than 2049 are renewed on a 10-year basis, and will continue to do so until 2049.
At that point, the government will announce new lease terms and of course the price of the lease.
The leasing of land is usually a government’s main sources of income, but it is also a measure of their credibility.
A government that tries to rebuke land ownership rights and property titles would effectively destroy any confidence in the country, and is therefore extremely unlikely.
It is more likely that the government will, at that time, issue new leases that expire in 2099, by which time I will be approximately 130 years old and less able to move if I have to…

(A version of this article appeared during February 2014)

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