To clarify, I'm really only considering ESL employers, who are legally required by the SAFEA to provide a minimum standard of accommodation to a foreign teacher. This is condition of the employer's licence. It's obvious why this is necessary: Inexperienced newbies fresh off the plane in China would find it exceedingly difficult to source a place by themselves without support -- in Chinese, liaising with landlords and agents, teeing up inspections, viewing apartments in different locations across an unfamiliar city. In such situations, new foreigners are also susceptible to exploitation. The government deems it the responsibility of the ESL employer to help the teacher find suitable accommodation, and rightly so.
Where things become a little cloudy is what's meant by "suitable". Any reasonable person coming to teach shouldn't expect their first apartment to be plush, but it must meet basic criteria:
Safe solid door with functioning lock; lockable windows; no faulty gas line/bottle in the kitchen; apartment should not be in an exceedingly run-down or remote area; no exposed electrical wiring etc. Most apartments do not have a smoke detector, but it's a good idea to install one yourself. They're not expensive.
Clean Everyone has different standards. Don't be exacting, and expect to do some cleaning yourself or pay a small amount to get a cleaner in. However, the standard of Chinese rental stock can be appallingly squalid, even by local standards (and I've seem em all). You'll know it when you see it, and you shouldn't settle for such places.
Independent Your accommodation must not be dorm-like, shared with other teachers, or have shared bathroom etc. It must be independent and allow you a degree of privacy.
Proximity The apartment can't be miles away from your workplace or public transport.
Basic furnishings working fridge, cook top, hot water system, working faucets, western toilet (not a squat toilet), working lights, table + chairs, bed and mattress, washing machine, TV, and working air-conditioner/heater. No bare concrete floors or walls. If the apartment doesn't have these, you should insist that the landlord get them before you'll sign the lease. In a furnished apartment, it's not mandatory for the landlord to provide a microwave, which are not at all common in Chinese homes, a phone line or Internet. Everything else, like cooking equipment, cutlery, bedding, etc. are really yours to source by yourself.
There are also these pointers from the SAFEA website that we shouldn't expect a new foreigner to contend with:
What do foreign experts need to pay attention to in renting housing?
(safea.gov.cn)
Updated: 2014-05-19
A foreign expert can get the employer to rent housing for them or they can go through a property agent to look for housing. Under no condition should they rent housing in the following way:
1. Renting from someone without proof of ownership.
2. Housing that has been sealed off or is limited by the justice department or administrators.
3. Housing with a joint house owner who has not given their approval.
4. Housing whose ownership is in dispute.
5. Housing in a building that has been deemed illegal.
6. Housing that fails to meet safety standards.
7. Mortgaged houses without approval by creditors.
8. Housing that does not comply with public security, environmental protection, or hygiene regulations.
9. Housing that cannot be rented according to local laws and regulations.
I know it's pretty time consuming for HR staff to find reasonable apartments with all of the above and within a reasonable distance of the workplace. I do sympathize with them to some extent because I've sourced my own rentals and know that it involves a lot of running around and filtering out a unsuitable places. One advantage of HR dealing with accommodation for you is that they're much tougher at negotiating rent. However, ultimately, the best solution over time is to take full control of finding your own accommodation and don't rely on your employer at all. Do this by familiarizing yourself with the real-estate websites above and either liaising with landlords yourself (if you're good at Chinese) or get a reliable Chinese friend or contact to help you deal with them directly.
On the issue of pay differential, I agree with luiz_iniciante.
