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Letting of subdivided units

When handling residential tenancies of subdivided units that are regulated under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap.7 of the Laws of Hong Kong), licensed estate agents must inform clients of the additional protections afforded to tenants under the law (in brief):

• Tenancy term: The first tenancy is two years, and the second tenancy is also two years. Tenants are entitled to a second-term tenancy, i.e. a total security of tenure of four years of occupancy. The rent for the second tenancy is to be adjusted in accordance with the Ordinance and may be increased by no more than 10%.
• Charges for specified communal facilities and services (e.g., water, electricity): Tenants are only required to pay apportioned charges.
• Apart from rent, rental deposit, apportioned charges for communal facilities and services, and compensation for loss or damage arising from the tenant’s breach of the tenancy, it is unlawful for landlords to collect other fees.
• Estate agents must provide clients with a summary of the mandatory implied terms under the Ordinance (i.e. the Annex to the Practice Circular (No. 22-01 (CR)) issued by the EAA).

The Basic Housing Units Ordinance (Cap.658 of the Laws of Hong Kong) has come into effect on 1 March 2026, except for provisions relating to offences of illegal letting of subdivided units, which will take effect on 1 March 2027. The EAA has also issued Practice Circular (No. 26-01 (CR)) to estate agents. For details of the Basic Housing Units Ordinance, please visit the webpage on the Basic Housing Units Regime.