Subdivided rent management｜The law came into effect on January 22, and the rent increase shall not exceed 10% for each renewal

The government announced that the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2021, which was passed by the Legislative Council last year, will take effect on January 22.

According to the regulations, the lease period will be up to four years from "2+2", and the tenant has the priority to renew the lease.

During the lease term, the rent cannot be increased, and when the lease is renewed, the landlord’s rent increase cannot be greater than the percentage change in the territory-wide rent index compiled and published by the Rating and Valuation Department for all types of private residential properties during the relevant period. The upper limit is 10%. In other words, the landlord cannot increase the rent by more than 10% after completing the two-year lease.

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The government reiterated that the new amendment regulations stipulate that it is a crime for landlords to overcharge tenants for miscellaneous charges or specify the repayment of charges for public facilities and services (including water and electricity).

All landlords must submit a tenancy notice (Form AR2) to the Evaluation Department within 60 days after the tenancy agreement becomes effective. Failure to comply with the relevant regulations without a reasonable excuse is a crime.

The Evaluation Department will be responsible for law enforcement and set up a new team to help the public understand the regulatory system of the new regulations; handle enquiries; provide free consultation and mediation services on leasing matters; issue declared "subdivided housing" after the implementation of the new law Rent information; and take appropriate enforcement actions, etc.

The government stated that it has entrusted non-governmental organizations to set up six regional service teams to assist the Evaluation Department to publicize the new law on the implementation of sub-unit rental control, including regular different types of publicity activities in the service area to help owners and tenants understand According to the respective rights and obligations of both parties, as well as handling general inquiries, etc.