Zhiheng Sharing | Mainland Students' Guide to Preventing Legal Risks in Housing Rental in Hong Kong (Chinese)- Zhiheng Law Firm

3. When renting a property in Hong Kong, the rent typically covers common expenses such as property management fees, property taxes, and utility bills.

In Hong Kong’s rental market, the specific scope of rent coverage must be clearly stipulated in the terms of the lease agreement. The following are common practices for handling rent, property management fees, property taxes, and utility charges, compiled in accordance with Hong Kong leasing conventions and legal requirements:

Typical inclusions in rent

Basic Housing Usage RightsThe core of rent is the right to reside in the property and typically does not include additional charges (such as management fees, utilities, or internet), unless the lease specifically states “all-inclusive.”

Exceptional Cases: Some student apartments or long-term rental serviced residences may offer bundled pricing, but the included items must be clearly listed in the contract.

Party responsible for paying the property management fee (management fee)

· Legal Attribution：Property management fees are charges paid by property owners to the property management company for holding their properties.In principle, it shall be borne by the owner.。

· Practical Operation：Landlords often pass on costs to tenants by increasing rents or including a separate clause stipulating that “tenants are required to pay management fees.” For example:

The contract stipulates that “the rent does not include the management fee, and the tenant shall pay a monthly management fee of XXX Hong Kong dollars.”
Risk Warning: If the contract does not explicitly stipulate otherwise, the tenant may refuse to pay; however, the landlord may respond by increasing the rent or terminating the lease.

Responsibility for Property Tax

· Taxpayer：The property tax is levied on landlords’ rental income, with a tax rate of… on the net rental income.15%，The statutory payment obligation rests with the owner.(Owner).

· Potential Costs for Tenants：Landlords typically factor property taxes into the rent. For example:

If the monthly rent is HK$20,000, the property tax payable by the owner would be HK$28,800 per year, calculated as HK$20,000 × 12 × 80% × 15% (after deducting the 20% maintenance allowance).
Contract Trap: Some landlords include a clause in the lease stipulating that “the tenant shall be responsible for property tax”; such clauses may be invalid as they contravene the Taxation Ordinance.

Calculation and Payment Methods for Utility Bills

UtilitiesDefaults to being borne by the tenant., the specific rules are as follows:

1. Water bill

· Cycle: Settled every 4 months; the first 12 cubic meters are free, with tiered pricing applied thereafter (e.g., for the next 31 cubic meters: HK$4.16 per cubic meter).

· Name transfer process: New tenants must submit an application to the Water Supplies Department and pay a HK$400 deposit.

2. Electricity bill

· Zonal Billing：

CLP Power (serves Kowloon and the New Territories): Charges are tiered based on a two-month consumption period (e.g., for the first 400 kWh: 91.3 cents per kWh).
Hong Kong Electric (covering Hong Kong Island): The first 150 kWh is charged at 81.3 cents per kWh, with a tiered rate for any usage beyond that.

· Undertake account: A copy of the lease must be submitted to the power company, along with a security deposit (approximately equivalent to 60 days’ estimated electricity charges).

3. Gas bill

· Meter readings are taken monthly, and billing is based on megajoules (MJ) (1 kWh = 48 MJ). The first 500MJ are billed at a rate of 28.55 cents per MJ.

Comparison Table of Utility Payment Responsibilities

Expense Type	Payer	Settlement Period	Billing Features	Transfer/Assumption Requirements
Water bill	Tenant	4 months	The first 12 m³ is free; tiered pricing applies.	Name transfer required; deposit of HK$400.
Electricity bill (CLP)	Tenant	2 months	Tiered increasing rates (e.g., the first 400 kWh at 91.3 cents/kWh)	Submit a copy of the lease; security deposit ≈ 60 days’ estimated electricity bill.
Electricity bill (Hong Kong Electric)	Tenant	2 months	The first 150 kWh is charged at 81.3 cents per kWh, with subsequent usage increasing in price.	Same as above
Gas bill	Tenant	per month	Billed by megajoule, with a lower unit price for the first 500 MJ.	Submit a copy of the lease; security deposit ≈ 60 days’ estimated rent.

Points to Note When Signing a Contract

1. Clarify the fee terms：The contract should itemize whether the rent includes management fees, property taxes, utilities (water, electricity, gas, etc.), and avoid vague wording such as “miscellaneous fees are to be borne by the tenant.”

2. Check billing history：Before move-in, require the landlord to provide proof of all utility bills (water, electricity, and gas) being paid in full to avoid being liable for any outstanding debts from the previous tenant.

3. Effectiveness of Stamp Duty：The lease must be stamped by the Tax Bureau (at a rate of 0.5% of the annual rent); otherwise, it cannot be used as evidence in court in the event of a dispute.

4. Renting a property in Hong Kong involves specific age restrictions and documentation requirements, as outlined below:

Age restriction (pursuant to the Hong Kong Minors Guardianship Ordinance)

1. Under 8 years old

o Incapacity to perform civil acts: Independent signing is prohibited; the rental contract must be signed by a legal guardian (parent), otherwise the contract is invalid.。

2. Ages 8 to 16

o Limited civil capacity：

Only simple rental agreements that are appropriate for one’s age and level of mental capacity may be signed (e.g., short-term, low-cost studio apartments);
Complex or high-value contracts require a guardian.Written Consent, otherwise the validity is pending (the guardian may rescind it).。

3. 16-18 years old

o Special Adult Identity: If your primary source of income is from employment (proof required, such as pay stubs or an employment contract), you may enter into contracts independently and assume legal liability; otherwise, parental or guardian consent is still required.

4. 18 years of age or older

o Full civil capacity: You can rent a place on your own, with no special restrictions.

Risk Warning

If the landlord toMinors without consentFor rent; the contract may be invalid and subject to a fine.
Hotel/GuesthouseMandatory requirement: Must be 18 years of age or older. is required for check-in (minors must be accompanied by an adult).

Checklist of Essential Documents for Renting a Home

Core Identity Proof

· Mainland resident: Mainland-Hong Kong/Macau Exit-Entry Permit (with a validity period covering the rental period), and mainland China ID card.

· Hong Kong resident: Hong Kong Identity Card.

· International Student: Passport, student visa.

Proof of Financial Capability

1. Proof of Income：

o Employed individuals: Pay stubs for the past 3 months or an employment contract;

o Student: Parental sponsorship statement + guardian’s income certificate (or bank deposit certificate).

2. Bank statement: Account statements for the past 3 months, showing stable income and expenses (recommended balance ≥ 3 months’ rent).

Supplementary Documents (to be provided as required)

· Student ID Card: Student identity verification;

· Proof of Address: Mainland China household registration book or recent utility bills (for opening a Hong Kong utility account);

· Guarantor Documents: If a guarantor is required, please provide the guarantor’s ID card, proof of income, and a guarantee letter.

Precautions for Special Groups

1. International student：

o Priority selectionStudent Dormitory(e.g., iRent) allows the operator to accept remote authorization from a guardian for contract signing;

o Must be submittedAdmission Notice andStudent VisaInstance.

2. Underage worker (16–18 years old)：

o Must be provided Employment contract + bank salary statement, proof of financial independence.

Key Points for Contract Compliance

1. Contract signed：

o Individuals under the age of 18 mustJointly signed by the guardians or provide a notarized power of attorney;

o The lease must be stamped.Stamp duty (0.5% of the annual rent); otherwise, it shall have no legal effect.

2. Fee Transparency：

o Clarify whether the rent includes management fees (typically borne by the landlord but potentially passed on to the tenant) and property tax (legally payable by the landlord).

o Water, electricity, gas, and internet billsNormally paid by the tenant, Complete the name transfer procedures before check-in (security deposit required).

Contributor

Ji Xinxu