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Written by: Golden Chess
2021-07-10 12:46
Last update date: 2021-07-10 12:46
The control of subdivided housing rent is expected to be implemented by the end of the year or early next year as soon as possible. The government recommends a two-year lease with no rent increase during the period; tenants have the right to renew the lease for two years, with a maximum increase of 15%.
The Secretary for Transport and Housing, Chen Fan, said today (10th) that after considering factors such as market operation, the burden and bargaining power of subdivided housing tenants, and the owner’s private property rights, he believes that it is reasonable to limit the maximum rent increase to 15%. , Appropriate level.
Chen Fan also emphasized that the implementation of control rather than banning subordinated housing is because if the regulatory intensity is unreasonably pushed to one side, it will have a counterproductive effect, leading to negative effects such as the exit of the owner or the "selection of customers".
He also pointed out that if there is a lack of supply of subdivided housing, "Can people living in subdivided housing go there?"
Chen Fan stated in the TV and Radio program "Saturday Accountability" today that with reference to the rent increase rate of less than 15% in many years over the past 20 years, the rent adjustment when deciding to renew the contract of the subdivided apartment should refer to the data of the Evaluation Department. The rent increase is capped at 15%; there is no upper limit for the rate of rent reduction.
Chen believes that the rights of tenants can be protected, and that 15% is a reasonable and appropriate level.
I was asked whether the tenancy right will be increased from the four years currently recommended to six years?
Chen pointed out that most tenants have leases for two years or more. I believe that four years have generally taken care of the needs of tenants.
As for many political parties, they think that the 15% increase limit is too high and propose to lower it to 10%.
I was asked what the government would do if Members proposed relevant amendments in the Legislative Council?
Chen Fan responded that the government is open, but when making decisions, the government has the responsibility to provide data support, balance the needs of different stakeholders, and continue to listen to the opinions of the community.
Chen Fan: The initial rent is not impossible to set up, but "it's difficult to generalize"
In the current control, there is no proposal to set a starting rent. Chen Fan said that he has heard relevant opinions and believes that the starting rent is not impossible to set up, but a scientific, transparent, and publicly acceptable mechanism must be used to handle it.
He pointed out that the size of the unit, facilities, spacing, and landscape will all affect the rent. "It's so difficult to generalize" to determine the starting rent for each subdivided house.
Therefore, the government subsidizes non-governmental organizations to provide assistance to the tenants of subdivided housing.
He also pointed out that the government will continue to study the initial rent issue and collect relevant information.
Chen also said that the control stipulates that any sub-divided house can only be charged four types of fees, including rent, deposit, sharing of public facilities and services such as electricity bills, and compensation for damaged items.
He pointed out that landlords can provide other services, but they can only be collected in the rent, so landlords cannot use other names to overcharge tenants' other fees.
In addition, the law also stipulates that landlords must provide proof of documents when they charge tenants for utilities such as water and electricity. "There is basically no room for landlords to cheat."
He also reminded business owners to operate sub-areas in a reasonable and legal manner, "Don't look at the government's (control) determination."
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Subdivided Housing Chen Fan Transport and Housing Bureau Rent and Tenancy Control
