Renting in Hong Kong: the rules

Hong Kong's tenancy law is the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), administered by the Rating and Valuation Department (RVD). The Landlord and Tenant (Consolidation) (Amendment) Ordinance 2004 removed security of tenure for domestic tenancies from 9 July 2004: tenancies made since then run according to their own terms, and there is no statutory minimum term, no automatic renewal and no right to stay on (RVD tenancy FAQ, as of 2026-10). What is left of Cap. 7 for an ordinary flat is mainly procedure: the landlord's notice of letting (Form CR109), implied forfeiture grounds, distress for rent and offences against unlawful eviction. The exception is Part IVA, which since 22 January 2022 regulates tenancies of subdivided units (see 'Rent' and 'Notice').

The usual private tenancy runs two years, known locally as 一年死約一年生約 (one year 'dead', fixed, and one year 'live'): a break clause lets either side end it after a minimum period, usually 12 to 14 months, with one or two months' written notice or payment in lieu (Estate Agents Authority, as of 2026-10). There is no standard form in law. Most lettings start with a 臨時租約 (provisional tenancy agreement) signed through the agent when the initial deposit is paid, followed by the 正式租約 (formal tenancy agreement) drawn up by the agent, solicitors or the parties themselves. The provisional agreement is already a binding contract: if one side refuses to sign the formal agreement, the other can go to court, including for an order forcing them to go ahead (Community Legal Information Centre, CLIC). The formal agreement should name both parties with their HKID or business registration numbers, give the address as registered at the Land Registry, the term, break clause, any option to renew, the rent and what it includes, and an inventory of furniture and appliances.

Every tenancy agreement must be stamped by the Inland Revenue Department's Stamp Office within 30 days of signing, whenever the tenancy starts. The duty is 0.25% of the total rent for a term of up to one year, 0.5% of the yearly (or average yearly) rent for over one year and up to three years, 1% for over three years and 0.25% of the yearly rent if the term is uncertain, plus HK$5 for each counterpart; a break clause does not shorten the term for this purpose. On a two-year let at HK$20,000 a month the duty is HK$1,200 plus HK$5. Late stamping costs two to ten times the duty, and an unstamped agreement cannot be used as evidence in civil proceedings (IRD Stamp Office, IRSD119, as of 2026-10). Tenancies of three years or less need not be registered at the Land Registry, but one longer than three years, or one with an option to renew, should be, or a later buyer of the flat may not be bound by it (CLIC).

For an ordinary flat no law caps the deposit, says where it must be held or how fast it must be returned, and there is no deposit protection scheme: the landlord holds the 按金 (deposit) under the terms of the agreement. The custom is 兩按一上: two months' rent as deposit plus the first month's rent in advance (上期). In the standard procedure described by the Estate Agents Authority, the tenant pays an initial deposit when signing the provisional agreement and the balance of the deposit plus one month's rent in advance when signing the formal agreement (EAA, as of 2026-10). If you rent through an agent, the commission comes on top (see 'Repairs, bills and who pays what').

The deposit is usually returned interest-free within a period set in the agreement after you hand back the keys, less unpaid rent, outstanding bills and damage beyond fair wear and tear. You cannot simply treat it as your last months' rent: unpaid rent is a breach that lets the landlord forfeit the tenancy, and where a tenant ends a fixed term early in breach, the Court of Appeal has allowed a landlord to keep the deposit as well as recover the rent arrears (CLIC, on Leung Wai Ling v Success Base Engineering, 2021). Photograph the flat and check the inventory at the start and the end. If the landlord will not return the deposit, the claim goes to the Small Claims Tribunal for up to HK$75,000 (no lawyers) or the District Court for up to HK$3 million (CLIC; Judiciary, as of 2026-10). If the flat is sold during your tenancy, the old landlord stays liable for your deposit unless it is properly transferred with your agreement.

Subdivided units let under Part IVA are different: the deposit may not exceed two months' rent (any higher figure in the agreement is read as two months), and the only money a landlord may take is rent, that deposit, actual utility charges and damages for breach. The deposit must be returned free of interest within 7 days after you hand back vacant possession at the end of the tenancy or settle what you owe, whichever is later, less arrears or losses caused by a breach (RVD notes to the template agreement; CLIC, as of 2026-10).

There is no rent control on ordinary tenancies: the rent is whatever landlord and tenant agree, there is no reference rent, no index cap and no tribunal that can lower an excessive rent (RVD, as of 2026-10). During a fixed term the rent can only change as the agreement allows, for example under a rent review clause, which in longer leases usually comes every two to three years (CLIC). In practice the rent is renegotiated at renewal, and a landlord who wants more can use the break clause or decline to renew; the Court will normally uphold a break clause used at the right time even if the tenant has spent money on the flat (CLIC). Rent is normally paid monthly in advance on a fixed day. If a landlord refuses to accept your rent, RVD advises posting a cheque and keeping the returned letter as evidence.

The only rent regulation is for subdivided units under Part IVA of Cap. 7 (in force since 22 January 2022). It covers a domestic tenancy of part of a flat or unit (cubicles, bedspaces, space capsules, rooftop and podium houses, including units in industrial and commercial buildings) let to an individual as their own home, written or oral; it does not cover squatter structures, New Territories village houses, or a room let by a resident owner in a flat whose approved plan shows it as a bedroom (RVD FAQ, as of 2026-10). The first-term rent is free to agree, but the rent for the second two-year term may rise by no more than the 'control percentage', the change in RVD's territory-wide private domestic rental index over the relevant period, and never by more than 10%; if the index has fallen, the rent must fall by at least that much. The landlord must make the offer on statutory Form AR1 during the 'offer period' (the second calendar month before the second term starts); if they miss it or ask too much, the tenant gets the second term at the old rent, reduced if the index fell. RVD publishes a Second Term Tenancy Rent Calculator and median rents for subdivided units by district.

For regulated tenancies the landlord must also give a rent receipt within 7 days showing their name and address, the period covered and the date paid (failing to do so carries a fine of HK$2,000). Asking for or taking any money other than rent, the permitted deposit, utility charges at cost and damages for breach, such as key money or 'admin fees', is an offence with fines of HK$10,000 for a first conviction and HK$25,000 after that (RVD key offences and penalties, as of 2026-10).

A fixed-term tenancy simply ends on its expiry date; neither side needs a reason and the tenant has no right to renew unless the agreement gives one. Before that date, either side can end it only under a break clause, by mutual agreement, or for breach. If a tenancy has no fixed term and no notice clause, common law applies: a monthly tenancy ends with a full month's notice expiring at the end of a rental period, a yearly one with at least six months' notice expiring at the end of a year of the tenancy (RVD tenancy FAQ, as of 2026-10). Leaving early without a break clause usually costs the deposit and possibly more.

If the agreement says nothing about forfeiture, Part IV of Cap. 7 lets the landlord forfeit a domestic tenancy when rent is unpaid 15 days after the due date, when the flat is used for immoral or illegal purposes, for unnecessary annoyance or disturbance (including persistently late rent), or for structural alterations without consent. A tenant who falls into arrears for the first time can usually save the tenancy by paying all arrears and the landlord's costs within the time the court allows ('relief against forfeiture') (CLIC). Repossession goes through the Lands Tribunal, which can also order payment of rent arrears, mesne profits and damages; the bailiff then enforces the order, first serving a notice giving the occupants 7 days to leave. A landlord can also apply to the District Court for 'distress for rent', where the bailiff seizes and sells the tenant's goods, for up to 12 months' arrears. A landlord who has not had Form CR109 endorsed cannot sue for rent at all (RVD; Judiciary, as of 2026-10). Changing the locks or throwing out an occupying tenant without a court order can be a criminal offence under section 119V of Cap. 7 and section 23 of the Public Order Ordinance (CLIC).

Regulated subdivided-unit tenancies run for two years, and the tenant is entitled to a second two-year term: four years of security in all. The landlord cannot end them early except on the grounds in the law (rent unpaid 15 days after the due date, illegal or immoral use, nuisance, structural alteration, subletting the whole unit, or failing to return a signed agreement or withheld rent). The tenant can leave with at least 30 days' written notice, but not before the last day of the first year of the term unless the agreement allows it. Harassing a tenant to make them leave carries a fine of up to HK$500,000 and 12 months' prison for a first conviction, and HK$1,000,000 and 3 years after that (RVD, as of 2026-10).

For an ordinary flat, repairs are whatever the agreement says: Cap. 7 contains no repair duties and the courts imply no warranty that the flat is fit to live in (RVD FAQ; CLIC). The common split is that the landlord handles structural and external repairs once told about them and the tenant handles internal, non-structural ones, fair wear and tear excepted; list which party maintains each appliance in the inventory. A tenant cannot withhold or deduct rent because the landlord has not repaired something unless the agreement allows it (CLIC). Under Part IVA, the landlord of a subdivided unit must keep the drains, pipes and wiring serving only that unit, the windows and the landlord's fixtures in repair, and do repairs as soon as practicable after notice; otherwise the tenant can end the tenancy with 30 days' notice or do the repair and claim the cost (CLIC; RVD, as of 2026-10).

Check what 'inclusive' rent covers. 差餉 (rates) are 5% of the flat's rateable value, billed quarterly in advance, with higher bands since 1 January 2025 for domestic properties with a rateable value above HK$550,000 (8% on the next HK$250,000, 12% above that). The government's rates concession for 2026-27 covered only April to September 2026, so full rates are due again from October (RVD, as of 2026-10). Owner and occupier are both liable to the government, and without an agreement to the contrary the occupier pays. 地租 (government rent) is 3% of rateable value and is the owner's liability; a tenant who pays it can recover it from the owner unless agreed otherwise (RVD, as of 2026-10). 管理費 (management fees) are owed by the owner to the building manager under the deed of mutual covenant, whatever the tenancy says. If the agreement is silent, the rent may be read as covering these outgoings, so write down who pays rates, government rent and management fees (CLIC). Water, electricity, gas and internet are normally opened in the tenant's name, each with its own account deposit. For regulated subdivided units, a landlord who passes on utility charges must show copies of the bills and a written apportionment and may not charge more than the billed amount (fines HK$10,000, then HK$25,000).

Estate agents must hold a licence from the Estate Agents Authority (EAA), which you can check online by name or licence number. When acting for you on a residential let they must sign the prescribed estate agency agreement (Form 5 with a landlord, Form 6 with a tenant), which states the commission and whether they also act for the other side (EAA, as of 2026-10). No law fixes the commission (CLIC); by custom each side pays the agent half a month's rent (HKUST's off-campus housing budgeting guide puts the tenant's fee at normally 50% of a month's rent; Centaline, as of 2026-10). Stamp duty on the tenancy agreement is by custom shared equally (EAA), except for regulated subdivided-unit tenancies, where the landlord alone must pay it and return a stamped copy to the tenant within 30 days. Contents insurance is not required by law.

Hong Kong has no system for registering where you live, and the identity card does not show an address. What you need is the Hong Kong Identity Card (HKID): anyone aged 11 or over permitted to stay more than 180 days must register for one in person at a Registration of Persons office within 30 days of arrival (Immigration Department, as of 2026-10). Landlords and agents put the HKID number (or a passport number for new arrivals) in the tenancy agreement and may ask about your employment or income, the intended use and the number of occupants (EAA). No law stops a foreigner from renting (CLIC). Banks generally only need to collect your residential address when you open a personal account and verify it only in specific cases (HKMA); when proof is asked for, HKMA guidance lists recent utility, rates or tax bills among acceptable documents and asks banks to be flexible with people who do not yet have them, such as new arrivals. The government's online Change of Address service updates 22 departments at once and asks for address proof.

Newcomers rent privately because public housing is not an option for years. To be allocated a 公屋 (public rental housing) flat, at least half of the household must have lived in Hong Kong for seven years and all must still live there, and income and assets must be under the limits (Housing Authority; 1823). As at end-June 2026 the average wait for general applicants housed in the previous 12 months was 5.5 years, or 4.8 years counting first offers of Light Public Housing (Housing Bureau). Subletting or taking in unregistered occupants in public housing is illegal (see 'Subletting').

For private flats the agreement decides. If it has no clause against subletting, subletting is not unlawful in itself, but almost every agreement forbids subletting, sharing or parting with possession; breaching that can lead to damages and forfeiture of the tenancy (CLIC). A sublease cannot be wider or longer than the head lease, and if the head tenancy ends, for example because the head tenant stops paying, the subtenant loses the right to stay even if they did nothing wrong; their only route is to ask the Court of First Instance for relief under section 58(4) of the Conveyancing and Property Ordinance. If you rent a room from the tenant (a 二房東, 'second landlord'), ask to see the head lease and whether the owner has consented.

Subdivided flats are often let room by room by a principal tenant. Part IVA covers those sub-tenancies too: the tenant of a regulated tenancy may not sublet the whole unit, and may sublet part only with the landlord's written consent (RVD; CLIC). The Basic Housing Units Ordinance (Cap. 658), 簡樸房條例, in force in phases since 1 March 2026, requires subdivided units in residential buildings to meet minimum standards (at least 8 m², a ceiling of at least 2.3 m, its own toilet, a sink outside the toilet, fire and structural safety, light and ventilation) and to be recognised as Basic Housing Units before they can be let, with a grace period for registered existing flats that runs to 28 February 2030 (see 'For landlords'); it does not cover industrial or commercial buildings, illegal rooftop structures or village houses (Housing Bureau; CLIC). Tenants are not criminally liable for renting an unrecognised unit.

Public rental housing may not be sublet, with or without rent, without the Housing Authority's consent; doing so risks losing the flat and prosecution. Home Ownership Scheme and other subsidised flats can only be let lawfully under the Housing Authority's rules, normally after the premium is paid; ask the owner for the Housing Authority's confirmation, because an unlawful letting can be void and both sides can be fined up to HK$500,000 and jailed for a year (CLIC, citing the Housing Ordinance, Cap. 283).

To let legally: check that the Government lease and the deed of mutual covenant allow residential letting and, if the flat is mortgaged, get the bank's consent; have the agreement stamped within 30 days; and lodge Form CR109 (notice of new letting or renewal) with RVD within one month of signing, free of charge (HK$310 if late), online, in person or by post. Without an endorsed CR109 you cannot sue for rent. For a regulated subdivided unit, lodge Form AR2 within 60 days of the start of each term instead; failure is an offence (fine HK$10,000 plus HK$200 a day), though RVD is issuing warnings rather than prosecuting where the landlord registers the flat under the new Basic Housing Units regime by the deadline, for late filings found between 3 October 2025 and 28 February 2027 (RVD, as of 2026-10). An agent acting for you must carry out a land search immediately before the lease is signed and give the tenant a copy (EAA practice circular).

The Basic Housing Units regime is being phased in. Phase 1 started on 1 March 2026: owners of existing subdivided flats (with at least one tenancy between 4 July 2025 and 3 October 2025) must apply for grace-period registration by 28 February 2027, which gives them until 28 February 2030 to bring units up to standard and obtain recognition; units created after 1 March 2026 must be recognised before letting, and recognition lasts five years. Phase 2, due to start on 1 March 2027, will make letting a subdivided unit without registration or recognition an offence (fine up to HK$300,000 and 3 years' prison, plus HK$20,000 a day), and in the last six months of the grace period, from 1 September 2029, no new tenancy of an unrecognised unit in a registered flat may be made. If the government ends a tenancy because a unit is let illegally, the tenant can claim the lower of three months' rent or the rent for the rest of the term (Housing Bureau BHU site; CLIC, as of 2026-10).

Rental income is taxed by Property Tax at the standard rate of 15%, a rate confirmed for the tax years 2020/21 to 2026/27, on the net assessable value: the rent received, less rates you paid as owner, less a flat 20% statutory allowance for repairs and outgoings; actual repairs, management fees, government rent and mortgage interest are not deducted separately, though individual owners can elect Personal Assessment. The tax year runs from 1 April to 31 March (GovHK; IRD, as of 2026-10). Letting for less than 28 consecutive days counts as running a hotel or guesthouse under the Hotel and Guesthouse Accommodation Ordinance (Cap. 349) and needs a licence from the Home Affairs Department's Office of the Licensing Authority, which requires a solicitor's letter confirming the deed of mutual covenant and Government lease do not forbid it. Under the Hotel and Guesthouse Accommodation (Amendment) Ordinance 2020, owners and tenants of premises used as unlicensed guesthouses are strictly liable; the maximum penalty is HK$500,000 and 3 years' prison, and a second conviction within 16 months can bring a 6-month closure order (HAD Office of the Licensing Authority, as of 2026-10). A flat with 12 or more bedspaces let under rental agreements needs a bedspace apartment licence.

RVD's rent officers give free advice and mediation on tenancy matters to landlords and tenants: call 2150 8303 or email enquiries@rvd.gov.hk to book, or use the RVD counter at the Lands Tribunal (38 Gascoigne Road, Yau Ma Tei, every working day) or the sessions at five District Offices. Mediation is voluntary and RVD does not give legal advice or act for either side. RVD also takes complaints about Part IVA offences, such as overcharging for water and electricity, missing receipts or harassment, and can prosecute (RVD, as of 2026-10). Tenants who need an interpreter can call the CHEER interpretation hotlines, which conference in RVD officers.

The courts: the Lands Tribunal hears landlords' claims for possession, with rent arrears and damages, and decides whether a tenancy is a regulated one; a filing fee is charged. The Small Claims Tribunal handles money claims of up to HK$75,000, such as an unreturned deposit or unpaid rent, informally and without lawyers. Larger claims go to the District Court (up to HK$3 million) or the Court of First Instance (Judiciary; CLIC, as of 2026-10). Complaints about an agent (misleading information, no estate agency agreement, no land search) go to the Estate Agents Authority, hotline 2111 2777. The Consumer Council takes general consumer complaints.

Free help: the Free Legal Advice Scheme run by the Duty Lawyer Service gives a one-off session of about 20 to 30 minutes with a volunteer lawyer, with no means test; book through a referral agency such as a Home Affairs Enquiry Centre (enquiries 2526 5969). The Community Legal Information Centre, run by the University of Hong Kong, explains landlord and tenant law in plain English and Chinese. For suspected rental scams, the police Anti-Deception Coordination Centre runs the 24-hour Anti-Scam Helpline 18222, and the police Scameter search engine on CyberDefender lets you check a phone number, bank or FPS account or website before you pay a deposit.