Table of Contents
1a. On this websiteWeb pageFind Properties
- Filter by needs (budget, area, building age, apartment type, etc.)
- Contact the owner
1b. Entrust a real estate agent to find a rental property
- Sign the property viewing permit：When entrusting a real estate agent, you need to sign a "property viewing paper" which lists the unit information and commission terms.
- Template link: Estate Agents Authority (Property viewing template）
- Notice：The validity period is usually no more than 3 months. If the same unit is rented through other agents, double commission will be required.
2. On-site property inspection
Check the key points:
- Property environment, orientation, and neighbors’ health conditions.
- Confirm whether it is a haunted house: check with neighbors, security guards, or use a database of haunted houses.
- Safety Tips: If you are meeting the owner on your own, it is recommended that you travel with a companion.
3. Check the property register to confirm the property information
- Purpose of Search: Confirm that the property has no illegal construction, subletting issues, and mortgage status.
- Search URL:Land Registry
- Risk Warning: If the owner fails to report the rent to the bank, the bank has the right to repossess the property and the tenant may be forced to move out.
4. Negotiate the rent with the landlord
- The owner may require: Proof of employment, proof of income, tax bill, etc.
- Rent Negotiation Tips: When the market is booming, you can try to get a rent-free period (usually 7-14 days) or additional home appliances.
5. Sign the provisional lease and settle the contract
- Deposit: Usually one month's rent.
- Liability for breach of contract: The party that cancels the order must compensate the deposit and pay the commission.
6. Sign the formal lease
- Lease Contents:
- Lease period:Usually "1 year fixed-term lease + 1 year living lease" (the lease cannot be terminated during the fixed-term lease period, and the living lease period requires 1 month's notice in advance).
- Deposit:Generally, it is a "two-mortgage and one-payment" (2 months deposit + 1 month prepaid rent).
- Maintenance responsibility : Details such as the list of home appliances and whether pets are allowed need to be listed.
- Lease Template:Hong Kong University Law Models
7. Stamp duty payment
- Calculation method:
- Within 1 year: Annual rent 0.25%
- 1-3 years: Annual rent 0.5%
- More than 3 years: Annual rent 1%
- Principle of apportionment: The landlord and tenant share equally (e.g., total tax for a 2-year lease is $605, and each party pays $302.5).
- importance: A lease without a stamp cannot be used as evidence in court.
8. Submit Form CR109
- Owner Responsibilities: Submit to the Valuation and Rating Department within 1 month after signing the contract.
- Form Link:Form CR109
- use: Protect tenants’ deposit transfer and rent collection rights.
9. If you purchase through a real estate agent, you will need to pay an additional commission
- Residential Commission: Usually half a month's rent (paid by the landlord and the tenant respectively).
- Commercial and Industrial Store Commission: Usually 1 month's rent.
Key Considerations
1. Legal constraints of property review
- Avoid double commissioning your broker, otherwise you will have to pay double commission.
- Contracts between close relatives are also subject to restrictions.
2. Haunted Houses and Risk of Violations
- Check the property register to confirm that there is no illegal subletting, and check with neighbors to confirm that the house is haunted.
- You can state in the lease that “there has been no homicide in the unit”.
3. Appliance Repair and Pet Policy
- The responsibility for maintenance must be clearly stated (e.g. dripping air conditioner is the owner’s responsibility).
- Keeping pets requires written consent from the owner.
4. Deposit and rental payment
- There is no legal requirement for a maximum deposit, but the market practice is 2 months' rent.
- The deposit must be returned in full upon termination of the lease (less reasonable damages).
5. Disputes over rent-free period
- If the landlord is unwilling to provide a rent-free period, it is recommended to find another rental property.
byTake the monthly rent of $10,000 as an example (2 months rent, 1 month upfront Cost Estimation)
| project | Amount |
|---|---|
| Deposit (2 months rent) | $20,000 |
| First month's rent (last period) | $10,000 |
| Real estate commission (half month) | $5,000 |
| Total expenditure | $35,000 |
FAQ
How long is the rent-free period? How to negotiate?
Usually 7-14 days, used for moving or renovation, during which time rent is free.
What are the functions of the rent-free period and the rent increase period?
Rent-free period: Allow tenants to move in and tidy up the unit without paying rent.
Lease start date: The day when the lease term and rent are officially calculated, usually immediately after the end of the rent-free period.
Who is responsible for stamping the tenancy agreement?
Stamp duty is usually paid half and half by the landlord and tenant, but the specific responsibility can be negotiated.
If the tax stamp is not made, the legal validity of the lease may be questioned, affecting the right to claim debt.
How much compensation do I need to pay if I terminate the contract early during the dead period?
The breaching party must pay the "rent for the remaining lease term" or according to the terms of the contract (e.g. 2 months' rent).
Do I need to re-stamp my lease for renewal? Anything to note?
Renewal is equivalent to a new contract and must be re-stamped.
Pay attention to whether the rent has been adjusted, whether the terms have been modified (such as maintenance responsibilities), and confirm them in writing with your signature.
How to cancel the lease when the rent rises or falls?
Deadline: The lease cannot be terminated due to changes in the rental market, otherwise compensation will be required.
Birth date：Terminate the lease according to the contract notice period (usually 1-2 months), rent adjustment requires the consent of both parties
What should I do if the landlord refuses to return the deposit?
The deposit is used to offset arrears of rent or damages. If there is no reasonable reason for deducting the money, the tenant can negotiate or seek recovery through the Small Claims Tribunal.
What are the consequences of landlords cutting off water and electricity to force tenants to rent?
It is a criminal offence punishable by up to imprisonment and a fine.
The tenant can call the police or apply for an injunction from the Lands Tribunal and claim for damages. Under the Landlord and Tenant (Consolidation) Ordinance, illegally depriving a tenant of his right of occupation is a criminal offence, punishable by a maximum fine of HK$1 million and three years' imprisonment.
How long does it take to repossess a property for rent arrears?
It usually takes 2-3 months: the landlord must first send a "rent reminder notice" → apply for a repossession order from the Lands Tribunal → the bailiff will come to repossess the property.
Owners are not allowed to change locks or cut off water and electricity on their own, otherwise it will be a criminal offense.
What are the contents of the Deed of Mutual Covenant of a Building?
The deed of mutual covenant specifies the building management rules, such as the use of common facilities, pet restrictions, decoration regulations, etc.
Tenants who violate the deed may be fined by the management, and in serious cases the landlord may terminate the contract early.
Summarize
When renting a property, be sure to confirm the legality of the documents (such as stamp duty, CR109), read the contract terms carefully, and seek legal advice if necessary. If you have any questions about the owner or agent, you can contactEstate Agents Authoritycomplaint. If there is a dispute, it is recommended to preserve written evidence and seek legal advice, or seek assistance from the Hong Kong Lands Tribunal or the Rating and Valuation Department.
