Rental
Always referred to as a monthly rental, and is payable monthly, in advance, by the Tenant to the Landlord. This amount is agreed during the initial negotiation process, and is constant throughout the lease term.
Government Rates
A tax charged by the Hong Kong SAR Government. Usually paid by the tenant, unless the Landlord has leased the property on inclusive rental terms. The charge is paid as a percentage of the 'rateable value' of the property, which is fixed by the Government, these are charged quarterly, and paid in advance.
Government Rent
nvariably paid by the Landlord but in certain instances may be to the Tenant's account. The charge is paid as a percentage of the 'rateable value' of the property .
Management Fees
Unless paying an inclusive rental, this is paid by the tenant and usually covers building maintenance, cleaning services, security, daily household rubbish disposal, and amenities. The charge is levied by the Building Management Company, based on several factors including the age of the building, number of units in the building and facilities (although sometimes use of the facilities is charged independently) and is invariably annually reviewed .
Tenants
Company Lease: The Tenant is the company whilst the occupant is the employee. This type of lease is more desirable to the Landlord as it provide the with a sense of security.
Personal Lease: The Tenant is the occupant. In these situations, the Landlord will often insist that a company 'guarantee' letter is issued to ensure that the rental will be paid throughout the lease term. Subletting is almost never permitted.
Legal Fees
In the event that Solicitors are employed, it is preferable that each party bears its own legal costs.
Stamp Duty
Tenancy Agreements must be 'stamped' in order to become legally binding documents. This fee is shared equally between the Landlord and Tenant, and is calculated at 0.5% of the annual rental plus HK$5 (this amount is for the duplicate copy of the Agreement).
Letter of Offer
The Tenant may request a break lease option which enables them to leave the premises before the end of their specified lease term without breaching their contract provided the agreed notice period has been given to the Landlord. The Landlord however does not usually, have this option.
Break Lease
The Tenant may request a break lease option which enables them to leave the premises before the end of their specified lease term without breaching their contract provided the agreed notice period has been given to the Landlord. The Landlord however does not usually, have this option.
Utilities
Utilities include gas, electricity, telephone, and water (which is charged quarterly). Deposits are required for utility connection.
Money Required When Signing a Tenancy Agreement
- Two or three month's rental as security deposit. (Some Landlords may require Rates and Management fees Deposit). This deposit is refunded at the end of the Lease term and is non-interest bearing.
- First month's rental, Government Rates, and Management Fees.
- Electricity Deposit The amount to be paid varies according to the size of the apartment.
- Gas Deposit HK$600 on every new account.
- Water Deposit HK$250
- Telephone An Installation fee of HK$600 is added to the first bill.
- Cable T.V. Deposit (where applicable) HK$1,200
- Broadband