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chinadaily.com.cn
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China Daily Website

Soaring Beijing agent rent 'fees' face ban

Updated: 2013-05-14 11:04
( chinadaily.com.cn)

Greedy property rental agents who inflate the rates of properties they manage in the capital and charge excessive broker fees will be banned under a draft proposal, Beijing News reported on Tuesday.

Most apartments in the capital are managed by agencies on behalf of their owners who increase the fee agreed and profit the difference.

The move comes as it was revealed the average monthly rent of an apartment in Beijing has increased by 82 percent in five years, China Central Television (CCTV) reported.

The average rent of a Beijing apartment was 3,660 yuan ($591) in the first quarter of 2013, while the rent was 2,010 yuan in 2008, according to a CCTV report in April.

Beijing plans to help cull price hikes by ending agent service fees, according to the new Beijing Real Estate Brokerage Management Methods issued by Beijing Municipal Commission of Housing and Urban-Rural Development on Monday.

The rental payment will be paid direct to the house owners by the tenants according to the paper.

House agents already normally require tenants to pay agent fees for the first year of a contract and when renewing the contract, considered by tenants as imparity clause. The new proposal bans repeated agent fees in renewing contracts.

 
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