About Hong KongRenting procedure

Below is information on the leasing procedure for Hong Kong property. All information regarding property must be verified via official government sources and all commissions and interests must be disclosed upfront. For more detailed information on this please refer to the Estate Agents Authority・s website: www.eaa.org.hk.


Estate Agency Agreement for leasing of residential properties in Hong Kong (EAA prescribed form 6)

This is a form confirming that you have appointed an agent to act for you in the event you intend to lease a property shown by that agent. Your agent will provide one of these for you (it is to be signed by you, the occupant, and if it is a company lease, you are signing on behalf of the company). Every time the agent shows you a property you will be provided wtih a schedule detailing the properties shown.


The Lease Term

The lease term is usually two years. Generally a break clause can be negotiated with two months・ notice being given after the expiration of the first twelve months; these periods can vary with some landlords requiring a longer minimum period of, say, fifteen months with three months・ notice. Some landlords require three months・ notice for a personal lease instead of two months・ notice for a company lease.


The Offer

Offers are taken seriously by the landlords upon submission in written form. The Agent should submit an offer to the tenant to confirm their intentions and any work to be carried out to the premises before submitting the same to the landlord for acceptance.


Holding Deposit

When all the terms are agreed, a refundable holding deposit equivalent to one month・s rent is paid to the landlord to secure the property pending signing of the Tenancy Agreement. Sometimes the holding deposit is non-refundable as required by the landlord thus making the contract binding upon acceptance of the offer. In this instance a draft Tenancy Agreement will be provided for your perusal prior to issuance of the non-refundable deposit.


Property Information Form (EAA prescribed Form 2)

This will be provided to you when you enter into negotiations to lease a property and before any binding contract is signed. This verifies the owner, any encumbrances, year of completion of the property, user restriction and any other information.


Tenancy Agreement

This agreement is a binding agreement between both parties, i.e. the landlord and the tenant, for a company or a personal lease.


Security Deposit

This deposit is due upon the signing of the Tenancy Agreement, usually equivalent to two months' rental but can be three months and can incorporate management fees, government rates, air-conditioning charges, utilities deposits, etc. This deposit is held by the landlord for the duration of the lease without interest and is refundable on terms set out in the Tenancy Agreement. Some landlords require two months・ deposit for a company lease and three for a personal lease.


Management Fees/Government Rates/Government Rent

Management fees and government rates are usually paid by the tenant. The amount varies from building to building. Government rent is payable by the tenant unless the Tenancy Agreement specifically states that it is the responsibility of the landlord.

Stamp Duty/ Legal Fees

Stamp duty, payable to the Hong Kong Government, is currently 0.5% of the annual rental on a two-year lease, shared equally between the two parties. It is usual that each party pays its own legal fees.


Utilities

The accounts for electricity, water and gas may remain in the landlord・s name payable by the tenant. However, in most cases, tenants are required to organise for transfer of these accounts to their name. Queens Property will assist clients in organising such transfers.


Handover of the Premises

This usually takes place on the lease commencement date. Your agent and the landlord, or his representative, will be present to thoroughly check to ensure that all decoration works, and provisions as agreed by the landlord e.g. appliances, are complete and in good working order. The utility meters will be read and keys handed over.


Agency Fees

Upon the signing of the Tenancy Agreement, Queens Property・s agency fee is payable by the tenant. This is usually equivalent to half of one month・s rental, although please check with us regarding our corporate discounts if your company belongs to our Corporate Account list.


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