Renting Apartments in Kennedy Town

Accommodation is one of the largest single costs in Hong Kong, being the most expensive residential property market globally as shown in the graph below, there is a need for us to look at the terms closely in the Tenancy Agreement to maximize your benefits and minimize your risk.

Top 10 most expensive real estate markets in the world

In 1,000 U.S dollars
 

Lease Term

2 years i.e. one “fixed year” + one “flexible year”.

Break Clause

An option can be exercised in the "flexible year" i.e. both parties can provide a written notice, usually 1-2 months, to break the lease.

Therefore, the minimum lease term of a typical Tenancy Agreement is usually 13-14 months including the advanced notice of termination.

Rent Free

It does not have a standard one and it is subject to negotiation. The condition of the unit e.g. 1. furnished or not 2. size 3. cleanliness can be the major factors for consideration.

Stamp Duty

A Tenancy Agreement must be stamped within 30 days of execution and it can be done by the Internet, post or in person at the Stamp Office of the Inland Revenue Department. Once a Tenancy Agreement is stamped, it can be admitted as evidence in court (including the Lands Tribunal) and is enforceable against the related parties.

For a typical residential lease in Hong Kong i.e. >1 year, but < 3 years, 0.5% of the average yearly rent (round up to the nearest 100 and nearest 1 for the final stamp duty) has to be paid by the Landlord & Tenant in equal shares.

Less than 1 Year - 0.25% of total payable rent.

More than 3 Years - 1% of the yearly or average yearly rent.

Duplicates of the stamp duty document – HKD5.

Agency Fee

1 month rent payable in equal shares by the Tenant & Landlord. Some of the landlords might consider to offer more according to the market situation.

Miscellaneous Payments

*Management fee, government rate and rent are all paid by the Landlord.

Deposit

Usually 2-month rent. It can be refunded to the Tenant within a week from the date of vacant possession if there is no loss or damage to the unit (wear & tear excepted) and breach of contract. Otherwise, the Landlord has the right to deduct the deposit.

Documents Required*

Identity proof document e.g. HKID/ passport, this is to ensure the Tenant is paying for the right landlord, while the landlord is having the true tenant in his apartment.

Some of the landlords might request employment contract or any salary proof related documents.

*Access land search for its importance especially for tenants.

 

Utilities

The cost of water/ gas/ electricity/ internet connection will be paid by the Tenant.

Pets

It may or may not be allowed in the building subject to the terms in the Deed of Mutual Covenant of the building, but it is at the sole discretion of the Landlord.

Subletting Right

The Tenant cannot assign, transfer, sublet or part with the possession of the Premises or any part thereof to any other person. This tenancy shall be personal to the Tenant named herein.

Tenants' Responsibility

To keep the interior of the Premises during the term in good and tenantable repair and condition (fair wear and tear excepted) and shall deliver up vacant possession of the Premises in the same repair and condition on the expiration or sooner determination of this Agreement.

To have their belongings covered by insurance, the Landlord is not responsible for any damage or loss under all circumstances.

Tenants' Right

The Tenant shall peacefully hold and enjoy the Premises during the term without any interruption by the Landlord if they have committed to all the terms in the Tenancy Agreement.

Landlords' Responsibility

To keep and maintain the structural parts of the Premises including the main drains, pipes, and cables in proper state of repair.

Inventory List

A list showing the items included in the premises such as furniture, electrical appliances and fittings. It protects both parties from any potential argument during handover and takeover (taking a video can also be a great option)

Explore a better way of renting an apartment in Kennedy Town.

Alternatively, you can learn more about KtownProp or join our Kennedy Town Residents’ Network.


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