Step 2: Points-to-note before leasing out
Pay attention to whether the property has an undischarged mortgage
A typical mortgage agreement with banks stipulates that landlords must obtain the bank's consent before renting out a mortgaged property; otherwise, the bank will not recognise the tenant's tenure. If the landlord rents out the property without the bank's approval and later defaults on mortgage payments, resulting in the bank repossessing the rented property, the tenant will have no right to continue residing there and may be unable to recover their deposit.
Pay attention to the use of property
Even different units within a building might have different user restrictions. In general, the user restriction of a property is stated in the occupation permit, the Deed of Mutual Covenant or the government lease with which both landlord and tenant should comply.
Pay attention to leasing restrictions
There are leasing restrictions for certain types of residential properties. For example, properties under the “Home Ownership Scheme” or the “Tenants Purchase Scheme” are subject to the Housing Ordinance, which prohibits renting them out before the alienation restrictions are lifted.
Subletting is not allowed without permission
Generally, unless explicitly stated in the original tenancy agreement by the landlord, tenants are not allowed to sublet the property to others.
Renting out subdivided units
The leasing of “subdivided units” is regulated by relevant laws. If the property being rented out is a “subdivided unit”, please click here for the points-to-note when leasing such units.
If you decide to rent out your property, you may appoint a licensed estate agent to handle the process. To check whether the appointed estate agent holds a valid licence, click here to learn how to identify licensed estate agents.