Renting a Property

Overview of the leasing process
  1. Find an apartment that you like and negotiate lease terms with the landlord.
  2. After reaching an agreement for the lease, check the land record to confirm the owner’s identity and if the property is mortgaged. Check for any illegal structure and building/slope order.
  3. You and the landlord have to sign a provisional tenancy agreement. You have to pay 1 month’s rent as holding deposit.
  4. You and the landlord have to sign a formal tenancy agreement. You have to pay 2 to 3 months’ rents as security deposit, and share the stamp duty costs with the landlord.
  5. The lease has to be registered at the Land Registry by the landlord. You have to pay around half a month’s rent to the estate agent as commission.

You are advised to consider carefully the lease period, amount of rent and deposit, and whether furniture and electrical appliances are provided before you sign the tenancy agreement with the landlord. If you decide to engage a licensed estate agent, you should clarify with him or her details of the engagement such as the amount of commission and the time of payment before signing the estate agency agreement. For more details regarding renting a property and the things to note before signing a tenancy agreement, please refer to this website.

Leasing Costs

Apart from the rent you negotiated with the landlord, some initial expenses will be incurred when you sign the provisional and formal tenancy agreement. The University provides a salary advance of up to HK$15,000 to help finance these expenses. 

  • A one-off tax to be paid to the Inland Revenue Department. Usually, the landlord and tenant will pay in equal shares within one month after signing the formal tenancy agreement.
  • The exact or estimated stamp duty payable can be calculated here.
  • Government rates are payable quarterly in advance and are charged at a percentage of the estimated annual rental value of a property.
  • The tenant has to pay rates separately if they are excluded from the rental.

Usually, you will have to pay 1 month’s rental as an initial holding deposit after you sign a provisional tenancy agreement, and 2-3 months’ rental as a security deposit once the formal agreement is signed.

The agency fee in Hong Kong is usually half a month’s rental, payable by both the landlord and tenant.

The tenant may appoint a solicitor on his/her own to review the tenancy agreement if necessary.

You are advised to purchase household insurance as your assets inside the apartment are normally not covered by the landlord’s insurance.

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