Following the implementation of the tenancy control regime for subdivided units (“SDU”) under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (“Ordinance”) in 2022, the Estate Agents Authority issued a relevant practice circular last year providing guidelines for estate agents and salespersons to follow when handling SDU tenancies, among which they are required to inform clients about the security of tenure and rent regulation as stipulated in the Ordinance, including the two terms of two-year tenancy.
As the first batch of those regulated tenancies under the Ordinance is about to approach their second term in 2024, both landlords and tenants need to follow specific procedures prior to the commencement of the purported second term tenancy. I would like to share with the public the essences regarding the second term tenancies.
It is not uncommon to read media reports about court cases in which landlords (and even agents) were prosecuted for violating the Ordinance. If you are a landlord of an SDU, you should familiarise yourself with the necessary procedures for the second term tenancies of an SDU, and you are advised to refer to the following materials produced by the RVD below for a better understanding.
RVD’s dedicated page for the second term tenancies of SDU:
Key Points of Second Term Offer:
Applicable documents and information:
Channels to obtain Form AR1:
Chief Executive Officer
Estate Agents Authority