Committee Approves Regulations that Cancels Rental Management Fees
City’s legislature standing committee has approved the revised housing regulation that officially cancels the housing rental management fee that is paid by landlords. Previously landlords had to pay management fees that are 2 to 3 percent of the charged rental fee.
In 1997 Guangdong Province canceled its management fee and in 2001 China canceled theirs nationwide leaving Shenzhen the only city that still charging the fee. Criticism on the fee gained momentum when an online post in 2010 stated that the housing rental management service center was paying its employees generously.
An audit was made and has shown that the salaries of the employees were partly funded by the fees collected from landlords. This prompted political advisers and local lawmakers to call for the cancellation of the management fees since 2005. But other officials argued that the fees are helping in covering the cost of managing the huge number of migrants in the city and in preventing illegal construction.
Two other laws were adopted during the meeting that concerns residential property registrations and technology transfers. Persons caught providing false information in their housing registrations are subjected to fines which is 5 to 10 percent of the registered property value. Technology transfer law stipulates that institutions will use not less than 30 percent of the income coming from technology transfers in awarding employees that helped in the transferred technology.