Logo Menu

Regulated Tenancy

Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) ("Ordinance") 

Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) ("Ordinance") which implements tenancy control on SDUs came into force on 22 January 2022.  The Ordinance aims to regulate SDU tenancies and provides protection to SDU tenants in various aspects, which include providing four-year security of tenure (first term of two years and second term of two years) for the tenants; restricting the rate of rent increase on tenancy renewal, which must not exceed the percentage change of the territory-wide rental index for all classes of private domestic properties compiled and published by the RVD during the relevant period, and is capped at 10%; and prohibiting landlords from overcharging tenants on utility and services (such as water and electricity), etc.

You may click here for the full text of Part IVA of the Ordinance, which is available at Hong Kong e-Legislation.  

🔶“Regulated Tenancies” At a Glance

🔶“Regulated Tenancies” Booklet

🔶Offences & Complaints relating to Regulated Tenancies Booklet

Role and Functions of Rating and Valuation Department

Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (the Ordinance), which aims to implement tenancy control on subdivided units, took effect on 22 January 2022. The Rating and Valuation Department (RVD) administers the provisions of the Ordinance, which include promoting public awareness of the regulatory regime under the new legislation, handling enquiries, providing free advisory and mediatory services to landlords and tenants on tenancy matters, endorsing the Notice of Tenancy (Form AR2) submitted by landlords, collating and preparing the reported rental information for publication, and taking enforcement action as appropriate.

Form and Template📝

Form Number Form Title Downloadable Form e-Services Remarks
CR109 Form CR109
Landlord and Tenant (Consolidation) Ordinance – Part IV
Notice of New Letting or Renewal Agreement		 PDF icon Electronic Form Fees
AR1 new image Form AR1
Landlord and Tenant (Consolidation) Ordinance (Cap.7)
Part IVA – Regulated Tenancies
Offer for Second Term Tenancy of a Regulated Cycle		     PDF icon
Specimen (for reference only)
Channels to obtain Form AR1
AR2 Form AR2
Landlord and Tenant (Consolidation) Ordinance (Cap.7)
Part IVA – Regulated Tenancies
Notice of Tenancy		 PDF icon Electronic Form Note: The landlord must submit a Notice of Tenancy in Form AR2 within 60 days after the term of the tenancy commences.
AR3 Form AR3
Landlord and Tenant (Consolidation) Ordinance (Cap.7)
Part IVA – Regulated Tenancies
Form for Tenant’s Enquiry about Notice of Tenancy (Form AR2)		 PDF icon Electronic Form  
AR4 new image Form AR4
Landlord and Tenant (Consolidation) Ordinance (Cap.7)
Part IVA – Regulated Tenancies
Form for Tenant to Lodge a Complaint		 PDF icon    
TR4 Form TR4
Landlord and Tenant (Consolidation) Ordinance (Cap. 7)
Section 115A(3) in Part IV New Tenancies of Domestic Premises or Section 120AAZQ(1) in Part IVA Regulated Tenancies
Application for a Certificate of Primary User		 PDF icon Electronic Form  
TR4D Form TR4D
Landlord and Tenant (Consolidation) Ordinance (Cap. 7)
Section 115A(4) in Part IV New Tenancies of Domestic Premises or Section 120AAZQ(2) in Part IVA Regulated Tenancies
Application for a Certificate of Primary User
(for use where a day of inspection is proposed)		 PDF icon Electronic Form Fees
TR25 Form TR25
Landlord and Tenant (Consolidation) Ordinance (Cap. 7)
Section 75A(2) in Part III or Section 128A(2) in Part VI
Application for a Certificate of Rateable Value		 PDF icon Electronic Form Fees
Other forms are downloadable from the website of RVD.
 

As a Landlord 

Regulated Tenancies
  • A regulated cycle of tenancies for a subdivided unit (“SDU”) is to comprise 2 consecutive “regulated tenancies” (i.e. first term of 2 years and second term of 2 years) for the SDU.
  • A tenant is entitled to be granted a second term tenancy, thus enjoying a total of 4 years of security of tenure.
  • A landlord must make the second term offer of 2 years to the tenant.
  • A landlord cannot terminate the tenancy before the expiry of the term, except under the circumstances as specified in Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (“Ordinance”).
  • The terms and conditions of the second term tenancy are to be the same as those of the first term tenancy, except the period of the tenancy and the amount of rent.
Entering into Written Tenancy Agreement
  • A landlord and a tenant may enter into their own written tenancy agreement for the first term tenancy, provided that the contents of the tenancy agreement do not conflict with the provisions in Part IVA of the Ordinance. (Please refer to the Template for Tenancy Agreement)
  • If the first term tenancy of a tenancy agreement, which was entered orally, has commenced, and the tenant has demanded in writing the landlord to serve on the tenant a written tenancy agreement reflecting the contents of the oral tenancy, the landlord is obliged to provide a written tenancy agreement to the tenant within 30 days otherwise the tenant may withhold the payment of rent, or terminate the tenancy after a period as specified in Part IVA of the Ordinance.
  • After receipt of the signed tenancy agreement from the tenant, the landlord shall return a counterpart of the stamped tenancy agreement to the tenant within 30 days.
  • The stamp duty is to be borne by the landlord solely.
  • If the landlord fails to return a counterpart of the tenancy agreement within 30 days, the tenant may withhold the payment of rent until the landlord has returned the counterpart.
Prohibiting Landlord from Overcharging Tenant Water Charge, Electricity Charge and Miscellaneous Fees
  • A landlord commits an offence if the landlord requires the tenant to pay any charges which are not permitted under Part IVA of the Ordinance.
  • If a landlord overcharges the specified utilities and services, the landlord commits an offence.
  • Specified utilities and services mean water, electricity, gas, communication services (including telephone service other than mobile telephone service, the Internet, cable television and satellite television).
  • Where any of the specified utilities and services for a SDU are not independently billed by the service providers (e.g. power companies or Water Supplies Department), the landlord must comply with the following conditions when requiring the tenant to reimburse the relevant charges as a separate payment from rent:
    • The landlord must be the payer named in the bills.
    • Copies of the bills shall be produced to the tenant.
    • An account in writing shall be provided to the tenant, which shows how the amounts under the bills are apportioned and that the aggregate of the apportioned amounts does not exceed the amounts under the bills.
  • The landlord is not allowed to request the tenant for reimbursement of the relevant charges at a sum exceeding the apportioned amount for the SDU as shown in the account.
  • Provided that there is no conflict with the relevant legislation, the landlord and tenant may discuss and agree on an acceptable apportionment method for the charges before entering into a tenancy.
Rental Deposit
  • The amount of rental deposit shall not be more than 2 months' rent.
  • A landlord must return the rental deposit to the tenant within the period as specified in Part IVA of the Ordinance.
Maintenance and repair
  • A landlord must maintain and keep in repair the following facilities serving the premises exclusively:
    • Drains
    • Pipes
    • Electrical wiring
    • Windows
  • The landlord must also keep in proper working order the fixtures and fittings provided in the premises
  • If any of the above obligations are not fulfilled, the tenant may terminate the tenancy
Rent Regulation
  • The rent of a first term tenancy is to be agreed between the landlord and tenant.
  • The rent cannot be increased during the term.
  • The rate of rent increase for the second term tenancy must not exceed the percentage change of the rental index compiled by Rating and Valuation Department (“RVD”) during the relevant period, and is capped at 10%.
  • If the percentage is a negative figure, the rent for the second term tenancy is to be reduced at least by that percentage.
Submission of Notice of Tenancy (Form AR2)
  • A landlord must submit a Form AR2 to RVD within 60 days after the term (including a first term and a second term) commences, otherwise the landlord commits an offence.
  • RVD will return a copy of the endorsed Form AR2 to both the landlord and the tenant.
  • Legal action for rent recovery cannot be taken unless the Form AR2 has been endorsed by the Commissioner of RVD.
Second Term Tenancy
  • Landlord must, within the offer period, state the proposed renewed rent on the Form AR1 and sign it, then serve it on the tenant to make a second term offer.
  • The Second Term Tenancy Rent Calculator available at the website of Rating and Valuation Department (“RVD”) can be used to calculate the maximum amount of renewed rent permitted by law.
  • Landlord must bear solely the stamp duty and return a copy of the stamped Form AR1 to the tenant within 30 days after the second term tenancy commences.
  • Landlord must submit Form AR2 to RVD within 60 days after the tenancy commences.
  • If landlord fails to make an offer to the tenant, the landlord is taken to have made an offer to the tenant.
  • More information on Second Term Tenancy such as tutorial videos, FAQs, channels to obtain Form AR1 and offer period, etc. can be found at the thematic website of RVD.
Early Termination by Tenant
  • A tenant may, by giving the landlord not less than 30 days’ prior notice in writing, terminate the tenancy. However, the date of termination must not be a date earlier than the last day of the first year of the term.
Right of Re-entry
  • If a tenant fails to pay the rent within 15 days from the due date, or is in breach of any of the sub-items below, the landlord may enforce the right of re-entry:
    • Must not use the premises for any immoral or illegal purpose.
    • Must not do anything on the premises that would cause any unnecessary annoyance, inconvenience or disturbance to the landlord or any other person.
    • Must not make any structural alteration without the consent of the landlord.
    • Must not assign or underlet the whole of the premises.
    • Must not underlet part of the premises without the consent of the landlord.

Note: For further details of the above key points, please refer to the booklet and At- a-glance on “Regulated Tenancies” prepared by RVD. All contents are subject to the provisions of Part IVA of the Ordinance.

As a Tenant

Security of Tenure
  • A regulated cycle of tenancies for a subdivided unit (“SDU”) is to comprise 2 consecutive “regulated tenancies” (i.e. first term of 2 years and second term of 2 years) for the SDU.
  • A tenant is entitled to be granted a second term tenancy, thus enjoying a total of 4 years of security of tenure.
  • A landlord must make the second term offer of 2 years to the tenant.
  • A landlord cannot terminate the tenancy before the expiry of the term, except under the circumstances as specified in Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (“Ordinance”).
  • The terms and conditions of the second term tenancy are to be the same as those of the first term tenancy, except the period of the tenancy and the amount of rent.
Entering into Written Tenancy Agreement
  • A tenant and a landlord may enter into their own written tenancy agreement for the first term tenancy, provided that the contents of the tenancy agreement do not conflict with the provisions in Part IVA of the Ordinance. (Please refer to the Template for Tenancy Agreement)
  • If the first term tenancy of a tenancy agreement, which was entered orally, has commenced, and the tenant has demanded in writing the landlord to serve on the tenant a written tenancy agreement reflecting the contents of the oral tenancy, the landlord is obliged to provide a written tenancy agreement to the tenant within 30 days otherwise the tenant may withhold the payment of rent, or terminate the tenancy after a period as specified in Part IVA of the Ordinance.
  • The stamp duty is to be borne by the landlord solely.
  • After signing and returning the written tenancy agreement by the tenant, if the landlord fails to return a counterpart of the stamped tenancy agreement within 30 days, the tenant may withhold the payment of rent until the landlord has returned the counterpart.
Rental Deposit
  • The amount of rental deposit shall not be more than 2 months’ rent.
  • A landlord must return the rental deposit to the tenant within the period as specified in Part IVA of the Ordinance.
Maintenance and repair
  • A landlord must maintain and keep in repair the following facilities serving the premises exclusively:
    • Drains
    • Pipes
    • Electrical wiring
    • Windows
  • A landlord must also keep in proper working order the fixtures and fittings provided in the premises.
  • If the landlord fails to fulfill any of the above obligations, the tenant may terminate the tenancy.
Prohibiting from Overcharging Tenant Water Charge, Electricity Charge and Miscellaneous Fees
  • A landlord commits an offence if the landlord requires the tenant to pay any charges which are not permitted under Part IVA of the Ordinance.
  • If a landlord overcharges the specified utilities and services, the landlord commits an offence.
  • Specified utilities and services mean water, electricity, gas, communication services (including telephone service other than mobile telephone service, the Internet, cable television and satellite television).
  • Where any of the specified utilities and services for an SDU are not independently billed by the service providers (e.g. power companies or Water Supplies Department), the landlord must comply with the following conditions when requiring the tenant to reimburse the relevant charges as a separate payment from rent:
    • The landlord must be the payer named in the bills.
    • The landlord shall produce copies of the bills to the tenant.
    • The landlord shall provide an account in writing to the tenant, which shows how the amounts under the bills are apportioned and that the aggregate of the apportioned amounts does not exceed the amounts under the bills.
  • The landlord is not allowed to request the tenant for reimbursement of the relevant charges at a sum exceeding the apportioned amount for the SDU as shown in the account.
  • Provided that there is no conflict with the relevant legislation, the landlord and tenant may discuss and agree on an acceptable apportionment method for the charges before entering into a tenancy.
Rent Regulation
  • The rent of a first term tenancy is to be agreed between the tenant and landlord.
  • The rent cannot be increased during the term.
  • The rate of rent increase for the second term tenancy must not exceed the percentage change of the rental index compiled by Rating and Valuation Department (“RVD”) during the relevant period, and is capped at 10%.
  • If the percentage is a negative figure, the rent for the second term tenancy is to be reduced at least by that percentage.
Notice of Tenancy (Form AR2)
  • After submitting a Form AR2 by the landlord, an endorsed copy will be served on the tenant by RVD.
  • Legal action for rent recovery cannot be taken unless the Form AR2 has been endorsed by the Commissioner of RVD.
Early Termination by Tenant
  • A tenant may, by giving the landlord not less than 30 days’ prior notice in writing, terminate the tenancy. However, the date of termination must not be a date earlier than the last day of the first year of the term.
Re-entry by the landlord
  • If a tenant fails to pay the rent within 15 days after the due date, or is in breach of any of the sub-items below, the landlord may enforce the right of re-entry:
    • Must not use the premises for any immoral or illegal purpose.
    • Must not do anything on the premises that would cause any unnecessary annoyance, inconvenience or disturbance to the landlord or any other person.
    • Must not make any structural alteration without the consent of the landlord.
    • Must not assign or underlet the whole of the premises.
    • Must not underlet part of the premises without the consent of the landlord.

Note: For further details of the above key points, please refer to the booklet and At- a-glance on “Regulated Tenancies” prepared by RVD. All contents are subject to the provisions of Part IVA of the Ordinance.