As the name suggests, the housing bank deals in houses in a similar way in which banks handle money. People with an extra apartment or houses can save the property in the bank and get the interest - the monthly rent from the bank as stipulated in the contract.

Since Jinfeng Ehouse Company put it into operation this April, 5,000 people have indicated their intention to save their property in the only housing bank in the city, and more than 200 contracts have been signed.

"The greatest attraction for me is that I can get regular, reliable income without dealing directly with the tenant," said Wu Zhongzheng, the housing bank's second client. Wu is a professor at Shanghai Marine College who has a three-bedroom apartment in Pudong courtesy of his institution.

Last year, Wu moved to a new apartment he bought in Putuo District and from January 20, he entrusted two nearby real estate agents to rent the one in Pudong.

The house remained empty until April despite the apparent interest of several would-be tenants.

Each time, Wu had to travel from Puxi to Pudong to deal with the interview and show potential clients around his property.

"I really got tired of that," Wu said. "I know it is only the beginning of trouble, as the tenant will always bother me whenever they have a problem with the house."

Wu has many reasons to worry, as many tenants do not look after their houses and some leave without paying the rent or other fees.

On most of these occasions, the landlords have to cope with this alone because they do not even sign contracts, let alone register the deal with the local real estate trade centre.

"The housing bank is a timely venture for me as it will take care of everything," he said.

But Wu is not very satisfied about the rent he can get from the housing bank - a little less than 1,500 yuan (US$181). The property was valued at 2,400 yuan (US$289) by the housing bank the first time and 2,000 yuan (US$241) the second time.

Staff from the housing bank explained that they have a formal system of calculating the rent: half a month's rent as the management fees, 5 per cent of the monthly rent for tax, and pay for the 40 days the housing bank takes to look for tenants (the monthly rent divided by 30 and multiplied by 40).

Wu signed the one-year contract because he thought it better than leaving the apartment empty and he doesn't want to take the trouble to look for tenants again.

For people who do not care much about money like Wu, the housing bank is a help, but it is not so popular among people who want every penny they can get.

They are more likely to spread information about their property among friends or on the Internet without paying a penny.

"We can only wait and see how long the housing bank will last," said Wang Weimin, a professor and director of the Modern Management Research Centre with Shanghai Sakura Real Estate Agency.

Some people will be deterred from using the housing bank due to the fees it charges, Zhang said.

At present, the bank does not accept office buildings, stores, villas, residences shared by more than one person or residences without basic living facilities such as water, electricity or gas supply.

Another worry is whether the housing bank is capable of shouldering the risks inherent in its scheme, as it has to pay the rent to the house owner from the 25th day after the contract is signed.

Can the housing bank afford to pay all the rent even if it cannot lease the house? Does it have enough staff to provide detailed services to the tenant while keeping the property in good condition?

"We have reached an agreement with Shanghai Property Replacement Company and we can use their channels, as they have hundreds of stores scattered around the city," said Zhang Jian, spokesman for the housing bank.

The housing bank is also investigating co-operation issues with several more agent companies, which means that the housing bank need not worry about the vacancy of the property taken from the house owners.

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