When it comes to renting a property, a tenancy agreement becomes one of the most important documents that both the tenant and landlord need to sign. In Hong Kong, the Hong Kong Exchanges and Clearing Limited (HKEX) has introduced several measures to regulate and standardize the tenancy agreement process to protect the rights of both parties.
Here`s what you need to know about tenancy agreements in HKEX:
1. Standardization of tenancy agreement
HKEX has introduced a standard form of tenancy agreement that landlords are required to use. This agreement has been designed to ensure that all critical provisions are included, and that the terms are fair and reasonable for both parties.
2. Deposit and Rent
Under the HKEX tenancy agreement, the landlord can take a security deposit from the tenant, which is equivalent to two months` rent. This deposit is refundable at the end of the tenancy period, provided that there are no damages or unpaid rent.
Rent is paid on a monthly basis and must be paid on or before the due date.
3. Duration of the tenancy
The duration of the tenancy is stated in the agreement. According to the HKEX standard form, the minimum duration of a tenancy agreement is two years.
4. Renewal and termination of the agreement
If the tenant wishes to renew the tenancy agreement, they must inform the landlord in writing at least two months before the end of the tenancy period. The landlord can also terminate the agreement by giving two months` notice to the tenant.
5. Repairs and maintenance
The landlord is responsible for repairing any damages to the property that arise due to fair wear and tear. The tenant is responsible for maintaining the property in good condition and keeping it clean.
6. Restrictions on usage
The tenant must use the property for residential purposes only, and not for any commercial or illegal activities.
The tenant is not allowed to sublet the property to any other person without the written consent of the landlord.
The tenancy agreement may include a clause prohibiting pets from the property, or the landlord may allow pets subject to certain conditions.
It is recommended that the tenant takes out insurance to cover their personal belongings and liabilities. The landlord is not responsible for insuring the tenant`s personal belongings.
10. Dispute resolution
In the event of any disputes arising between the tenant and landlord, HKEX recommends that both parties try to resolve the issue amicably. However, if this is not possible, the dispute can be referred to the Small Claims Tribunal for resolution.
In conclusion, a tenancy agreement is a vital document that every tenant and landlord must be familiar with to ensure that their rights are protected. By following the guidelines set by HKEX, both parties can have a clear understanding of their obligations and responsibilities, leading to a successful and stress-free tenancy period.