Don't those small shops charge a month rent agency fee too?

Yeah, that is what I was thinking. I really need to avoid the agency fee if possible especially as I will need to find a similar place next month for myself so I'll be doing it all over again!

I must add I am looking for a basic cheap place. My current place is 1500p/m and it's a two bed flat. So I'm looking for something around 1000p/m or less. I really don't care if it's grotty as it would be a bit of a project to do it up. Plus I have mostly all the furniture I would need for an empty place. So makes no sense to rent a fully furnished place. Some light furniture would be good though.

agent fees can be haggled...usuallty 100 to 250 if youre good. mprin check out xishan, huang tu po, and chang yuan road. you can get empty 2 bedrooms for 1200 to 1300. or the lofts that are 2 floors about 40sqm for about 1000. (small bathroom, kitchen and large empty space downstairs and a large loft upstairs used for bedroom. )

@mPRin: For the price you're looking for, try Fengningxiaoqu, on Jinhuapulu north of Renminxilu and just inside the 2nd Ring Rd. - single bedroom, living room, small inside sunporch sort of affair (hard to describe, but plenty of light from windows), kitchen, bathroom, RMB800p/mo., maybe less. No hassle with gate guards any time day or night, direct buses to Wenlinjie, & Renminlu has many buses, will have an underground after they finish tearing it up and putting it back together. Virtually no foreigners.

Thanks so much guys! Saw some cheap places in Huangtupo and tbh a loft sounds awesome! I think it's just too far for my needs.
I'll check out the other roads you suggested! : )
@Alien Fengningxiaoqu sounds perfect!

Even for that area, I think 1000 is more realistic. The art school did lose a lot of students, so maybe there are a lot more vacancies, but its hard to find any single apartment for less than 1000 inside the 2nd ring road. Will agree with the virtually no foreigners, as very few make it past Think UK. Don't live directly above the BBQ street or restaurant street, as traffic and noise and smell are all problems beginning dinner to late into the morning, but plenty of cabs, local markets, and even C4 walking distance.

My friend got a decent place this afternoon on Renmin Zhong Lu for 1000p/m. A little more than he wanted to spend and he ended up going through an agent, but he was in a hurry, so yeah... The agent said it was okay to pay half the fee this month and half next month, so that was helpful and it's a great location (only ten minutes walk) for his work. : )

I'll be checking out your suggestions for me as I need to move in the next couple weeks. Please list any other areas you know of as I have some time to check them all out carefully.