Gov’t pushes for tenancy control measures

If passed within the legislative session, it will likely be in effect by late 2021 or early 2022.

The Bill regulating domestic tenancies on subdivided units (SDUs) is being pushed to the Legislative Council at the directive of the Executive Council and the Chief Executive.

The government ordered that the amendment to the Landlord and Tenant (Consolidation) Ordinance be introduced to the Legislative Council to implement tenancy control on SDUs.

The bill will mandate SDU landlords and tenants to sign a written tenancy agreement that set out their rights and obligations.

It will also provide a four-year security tenure for tenants as well as restrict the rate of rent increase on tenancy renewal, subject to a 15% cap.

Landlords will also be prohibited from overcharging tenants on utility charges.

"The proposed tenancy control framework, if implemented, would be able to achieve our policy objective of providing reasonable protection for SDU tenants, particularly providing them with the much-needed security of tenure and preventing unwarranted rent hikes by landlords upon tenancy renewal without unduly compromising the interests and property rights of SDU landlords,” a spokesman for the Transport and Housing Bureau said.

The proposal will cover domestic tenancies of SDUs in industrial or commercial buildings or temporary structures such as “rooftop houses” and “podium houses.”

The primary consideration to extend tenancy control to cover these SDUs is that tenants living in these SDUs may be even more vulnerable than those living in SDUs in normal residential buildings and are also in need of the protection of tenancy control measures.

It clarified, however, that the bill is not intended to legalise illegal SDUs in industrial or commercial buildings.

If the bill is passed by the Legislative Council in the current session, the amendment will be in effect by late 2021 or early 2022.