The economy may be expanding, but for some Shanghai residents living space keeps getting smaller and smaller.

 

A combination of low wages and high rent is forcing some residents to start "collective renting," a term frequently used in local media at the moment to describe this growing problem.

 

"Collective renting refers to a flat being rented at the same time to more than three persons and sometimes up to 10," explained Zheng Hui, a legislative adviser for the Shanghai municipal government.

 

Cai Zhixing, the head manager of the Lucheng community in Pudong New District, told China Daily yesterday that the most typical example of collective renting in his community is a three-bedroom flat divided into 10 small separate spaces, and shared by 10 individuals.

 

"Even one of the two toilet rooms can be turned into a rental space," said Cai.

 

Usually an owner of a three-bedroom flat divides it into 7 different rooms and rents it to 10 strangers, said Cai.

 

"The sitting room is usually transformed into a living space and all of the tenants have to share the same toilet and kitchen," he said.

 

"As a fresh college graduate, my salary is not high enough to rent one room by myself, so I hope to live with others to share the cost," said Li Wen, 23, who shares 120 square-meter apartment with 12 people in the community.

 

"Though it's rather inconvenient for me to share the toilet and the kitchen, I have to put up with it since now I don't have the money to buy my own house," she added.

 

According to Cai, each divided space can be rented for 500 yuan (US$62) to 1,000 yuan (US$125) per month, depending on the size.

 

"The more rooms a flat can be divided into, the more rent landlords can earn, "said Cai.

 

"Out of the total 1,800 flats in Lucheng, 700 are owner-occupied, 200 are rented and some 800 are empty," said Cai.

 

With new measures adopted by the government to curb speculation and cool down the property market, Cai said "more house owners tend to lease out their property to make bigger profits, rather than sell at this precarious moment."

 

"Tenants can live in Shanghai at a cheaper price and house owners can earn more rental fees than usual this explains why collective renting is becoming more and more popular in Shanghai at present," Zheng said.

 

While landlords and tenants can benefit, the rest of the community is less keen on the collective renting trend.

 

"It has caused various kinds of social problems for the community," said Cai.

 

Permanent residents have expressed concern that they are more likely to be robbed, Cai said.

 

Waste management and elevator safety are issues of tension, along with concerns that too many electrical devices being used at the same time will be a fire risk.

 

To regulate this renting practice, some law firms have drafted a proposal to the government in the hope of including collective renting in the government's future legislative consideration, Zheng said.

 

The final solution may involve permanent dwellers having to give their agreement before someone rents in their neighborhood, he added.

 

(China Daily August 2, 2006)