21 landlords of regulated subdivided units convicted for not submitting tenancy notices on time

Eastern Magistrates' Courts.

19th April 2024 – (Hong Kong) At the Eastern Magistrates’ Courts today, twenty-one landlords were fined a total of $32,000 for their failure to comply with tenancy reporting requirements in Hong Kong. These individuals, responsible for managing subdivided units (SDUs), neglected to submit a mandatory Notice of Tenancy (Form AR2) to the Commissioner of Rating and Valuation within the required 60-day period after the commencement of a regulated tenancy.

This breach of Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) has led to substantial penalties, with two landlords, in particular, facing fines of $4,000 each for committing five offences apiece. Since the enforcement of the ordinance, the Rating and Valuation Department (RVD) has successfully prosecuted 239 cases involving 204 landlords, accumulating fines ranging from $400 to $18,600 and totalling $433,700.

The RVD initiated these prosecutions following thorough investigations and evidence gathering, which confirmed the landlords’ non-compliance with the ordinance. A spokesman for the RVD has urged SDU landlords to adhere to the legislation and reminded tenants of their rights under the same law. The department is committed to stringent enforcement actions against any violations of the ordinance.

In its proactive approach, the RVD has been employing multiple strategies to identify and follow up on landlords suspected of contraventions. This includes requiring landlords to furnish information and documents related to their tenancies to verify compliance.

Landlords who fail to comply or ignore requests from the RVD without a reasonable excuse are risking a maximum fine of $10,000 and up to three months in prison. The RVD’s ongoing efforts to enforce the ordinance are aimed at curbing illegal practices swiftly and ensuring a fair housing market.