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Subsidiary rent management. Live | The team advocates for the regulation of rent increases and the maximum rent index of the Department of Estimates 15%

2021-03-31T06:55:26.181Z


The government has appointed a working group on the control of subdivided housing to study the feasibility of implementing control of subdivided housing. The team submitted its final report to the government today (31st). Chairman Liang Yongxiang attended the press conference to explain the content. According to


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Written by: Zhang Jiamin and Wang Jieen

2021-03-31 14:30

Last update date: 2021-03-31 14:50

The government has appointed a working group on the control of subdivided housing to study the feasibility of implementing control of subdivided housing.

The team submitted its final report to the government today (31st). Chairman Liang Yongxiang attended the press conference to explain the content.

It is understood that the group report recommends the establishment of a standard lease agreement to regulate "subdivided housing", with "2+2" as the lease term. Tenants can give priority to renewing the lease, and the increase in rent must follow the target range set by the government, and set 15% Under the capping mechanism, the Estate Agents Authority will be responsible for regulating the tenancy agreement, and landlords should not overcharge utility bills.

The live broadcast of "Hong Kong 01".

The working group on the study of subdivided rent control submitted a report to the government today. The chairman of the working group Liang Yongxiang held a press conference to introduce the contents of the report.

He first explained the survey of subdivided housing in Hong Kong. There are at least more than 100,000 subdivided housing in the market, and about 226,000 people live in it. However, the data does not cover industrial building subordinates.

Subdivided Housing Rent Management | Survey reveals that 100,000 subdivided houses over 226,000 live in a median monthly rent of nearly 5,000

The problem of subdivided housing in Hong Kong is serious. The government has appointed a subdivided housing rental control research working group to study the feasibility of implementing subdivided housing rental control.

(Data Picture/Photo by Gao Zhongming)

The report of the group pointed out that it is not feasible to set the “starting rent” because there are estimated to be more than 100,000 subdivided houses in Hong Kong. They have different characteristics and the rent level is also affected by many factors. Setting the "starting rent" for interim housing will involve high administrative costs and burdens, as well as disputes between tenants and landlords.

The tenant has the right to terminate the lease after one year of residence

The group recommends that a "standard tenancy agreement" with mandatory clauses should be formulated, and it is mandatory for the landlord to sign the relevant tenancy agreement with the tenant.

It will be stated in the lease agreement that the lease term is fixed for two years, and the rent cannot be increased during the lease term, but the rent can be reduced.

The tenant also has the right to renew the lease once, thereby obtaining a "2+2" four-year lease.

The rent increase must be based on the private residential rent index of the Department of Assessment

After completing the first two years of the lease, the group recommends that the rent can be increased once when the lease is renewed, and the increase should not exceed the percentage change of the private residential rent index of the Evaluation Department, and a 15% capping mechanism will be set up.

When the percentage change is negative, the rent has to be reduced in the same way.

With reference to the changes in the above-mentioned index from 1998 to 2019, 2008 saw the largest increase, reaching 26.3%; while in 1999, it experienced the strongest decline, with a decrease of 25.7%.

Taking 2018 as an example, the change reached 14.7% that year, and the 15% ceiling level has not yet been touched. Therefore, if the lease is renewed that year, the landlord can increase the rent by up to 14.7%.

According to future laws, tenants should have the right to request the landlord to hand over the written lease signed by the landlord to the tenant at any time within a specified period (for example, within 28 days).

The report recommends the establishment of a standard lease agreement for subdivided houses, and it should state that the rent must not be increased during the two-year lease period. The owner must maintain the internal conditions of the property and maintain the normal operation of the water, power, hot water, and sanitation facilities in the property.

In addition, only the tenant has the right to give the landlord one month’s notice and terminate the tenancy agreement after the first 12 months of the tenancy period.

The tenant's share of the utility bill shall not exceed the bill amount

The team also suggested that the lease should include clauses for overcharging of utility bills.

If there is no independent electricity meter installed by the power company or the Water Supplies Department, and the landlord requests the tenant to reimburse the utility fee, the tenant must provide the tenant with a copy of the utility bill and schedule.

They said that the tenancy agreement should specify the sum of the shared expenses that all tenants must pay, and it must not exceed the amount collected in the utility bill. The relevant arrangements are also applicable to gas or liquefied petroleum gas, WiFi services, and so on.

Enjoy "2+2" priority renewal right

The working group also suggested that tenants should have the right to renew the lease once, thereby obtaining the right of tenancy for a period of four years.

After 4 years, the landlord and the tenant can freely negotiate and enter into a new lease, and agree on the rent level.

A 60-day notice period should be given to the recovered unit

The team also pointed out that consideration can be given to requiring the source lessor to give the affected tenants a longer notice period, such as 60 days, when terminating the source lease and repossession of the premises, so that they have time to find another home.

The report of the sub-rental rent management research team will be released. Focus on the platform: not setting the initial rent, huge loopholes

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Subdivided rent management | News: The group report advocates a 15% increase in rent according to the mechanism, unlimited initial rent

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Source: hk1

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