When renting a property in China, you will frequently encounter the term "management fee." Many of you might have questions about this fee. Today, we will provide answers to these inquiries.
What is the management fee?
In China, management fee is also referred to as property management fee or compound management, or “Wu Ye Fei" in Mandarin. It is usually charged to residents living in compounds to cover the costs of various services and amenities provided by the property management company.
What services does this fee include?
The scope and quality of the services can vary significantly depending on the type of property and its management company. However, typical services often include:
Security Services: Gate guards, CCTV monitoring, and access control to ensure the safety of residents.
Cleaning and Maintenance: Regular cleaning of common areas, such as hallways, elevators, and public spaces. Also, general upkeep of the compound, including painting, repairing, and maintenance of facilities like swimming pools or gyms.
Waste Management: Collection and disposal of waste from common areas and from individual residences.
Gardening and Landscaping: Maintenance of gardens, lawns, and other green spaces within the compound.
Utility Management: Managing common utilities like water and electricity for common areas.
Compound Facilities: Operation and maintenance of compound facilities like clubhouses, swimming pools, gyms, and playgrounds.
Parking Management: Allocating and managing parking spaces ( this may require an additional fee which is referred to as a parking management fee)
Customer Service and Complaint Handling: handling complaints, queries, and other issues related to living in the compound.
Emergency Services: Provision of first-aid and emergency services in case of fires, floods, or other disasters.
Inspection and Compliance: Ensuring that the residential compound adheres to local laws and regulations.
Communication Services: Regular updates and communication with residents through meetings, newsletters, or a community portal.
Event Management: Organization of community events or social gatherings, etc.
Generally, the management fee is levied to maintain the overall functionality of the compound, rather than for upkeep within individual apartments. In certain compounds, the management company may provide assistance with minor apartment repairs at no cost, while in others, they may charge a fee for such services.
How much is the management fee?
The cost of the management fee is influenced by several factors, including the brand of the property management company, the property's size, and the location of the compound. Typically, these fees can vary, spanning from 0.5 RMB to 10 RMB per square meter a month. For example, if the size of your apartment is 150 sqm, and the fee is 3.5 RMB per square meter, it means the management fee is 525 RMB a month.
Who pays the management fee?
One of the most commonly asked questions when renting an apartment revolves around the responsibility for paying the management fee. In China, when a landlord provides the monthly rental rate for an apartment, it often does not include the management fee. In such instances, tenants are required to pay the management fee separately in addition to their rent. Conversely, if the rental rate already encompasses the management fee, then the landlord covers this cost. Therefore, it's essential to inquire whether the management fee is included in the rent before finalizing your lease agreement.