The Landlord & Tenant (Consolidation) (Amendment) Ordinance 2021 will take effect on January 22 to regulate tenancies of subdivided units (SDUs), the Rating & Valuation Department announced today.

Under the ordinance, a regulated cycle of tenancies for a SDU is to comprise two consecutive regulated tenancies, each for a term of two years; a tenant of a first term tenancy is entitled to be granted a second term tenancy, thus enjoying security of four-year tenure; and rent increase during the term of a regulated tenancy is not allowed.

The rate of rent increase for the second term tenancy of a regulated cycle must not exceed the percentage change of the citywide rental index published by the department and is capped at 10%; a landlord of a regulated tenancy commits an offence if requiring the tenant to pay any non-permitted money or reimbursement of charges for specified utilities and services; and a landlord of a regulated tenancy must, within 60 days after the term of the tenancy commences, submit a notice of tenancy to the department.

The department explained that it is responsible for the ordinance's implementation and has set up a new section to promote public awareness of the new regulatory regime, handle enquiries, provide free advisory and mediatory services on tenancy matters, publish the reported rent data of SDUs after the ordinance's implementation and take enforcement action as appropriate.

Additionally, the Government has engaged non-governmental organisations to set up six district service teams with the aim of helping the department to promote the new legislation to implement the tenancy control on SDUs.