Landlord of a subdivided unit convicted for requiring tenant to pay rental deposit of more than 2 months’ rent and advanced charges

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Photo for illustration purpose only.

Hong Kong Government Press Release

3rd February 2023 – (Hong Kong) A landlord of a subdivided unit (SDU) contravened Section 120AAZL under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (the Ordinance) for requiring the tenant to pay in relation to the tenancy (a) a specified rental deposit of more than 2 months’ rent; (b) charges paid in advance rather than on reimbursement basis for specified utilities and services payable by the tenant under the tenancy, namely, water charges, electricity charges and town gas charges; and (c) cleaning fees. The landlord pleaded guilty today at Eastern Magistrates’ Courts and was fined $2,000 for the offence, and must repay to the tenant $400 received from the tenant other than that the landlord is entitled or permitted to receive under the Ordinance. This is the second SDU landlord being convicted of contravening the Ordinance since it has come into force from 22nd January, 2022.

The Rating and Valuation Department (RVD) received in mid-July 2022 a complaint about a person requiring an SDU tenant to pay money other than those specified under the Ordinance, which contravened the requirements. Upon in-depth investigation and evidence collection, the RVD prosecuted against the landlord of the regulated tenancy suspected of contravening the Ordinance.

Pursuant to Section 120AAZL of the Ordinance, a landlord of a regulated tenancy commits an offence if the landlord requires the tenant to pay, or the landlord otherwise receives from the tenancy, any money in relation to the tenancy other than those falling within the following types:
(a) specified rents;
(b) specified rental deposits;
(c) reimbursement of charges for any of the specified utilities and services payable by the tenant under the tenancy;
(d) damages for the tenant’s breach of the tenancy.

The landlord is liable on a first conviction to a fine at level 3 ($10,000), and on a second or subsequent conviction to a fine at level 4 ($25,000).

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