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Statutory tenancy renewal and repossession procedures in the private domestic rental market will be simplified following today's (December 27) gazettal of the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2002 ("Amendment Ordinance"). With most of the provisions taking immediate effect, the general operation of the Landlord and Tenant (Consolidation) Ordinance (Cap.7) will be improved.
The Amendment Ordinance seeks to balance and enhance the interests of both landlords and tenants, to protect landlords from being abused by rogue tenants on the one hand, and to strengthen the rights enjoyed by tenants on the other hand. To achieve this, apart from providing streamlined statutory procedures governing tenancy renewal and repossession, the Amendment Ordinance also provides revised compensation package for sub-let and part-let premises in redevelopment cases, and increased penalty for harassment of tenants and unlawful eviction.
A spokesman for the Housing, Planning and Lands Bureau said, "There are at present about 240,000 tenancies in the private domestic rental market in the SAR, and there is a need for the Government to devise timely measures to cope with the changing market situation. The Amendment Ordinance is enacted after detailed deliberation and thorough consultation and discussion. It is expected to strengthen the protection for both landlords and tenants, and bring a positive impact to the private domestic rental market."
In order to facilitate forfeiture of tenancy in view of rogue tenants, the Government provides four implied forfeiture clauses in the Amendment Ordinance. Under that, landlords might, in the absence of such provision in the tenancy agreement, apply for repossession before the tenancy expires on the ground that the tenant fails to pay rent within 15 days after the due date, uses the leased premises for illegal or immoral purpose, causes unnecessary annoyance, inconvenience or disturbance (including persistent delay of rent payment) or makes structural alteration to the leased premises without prior written consent of the landlord.
"Even landlords of oral tenancies or tenancies without such forfeiture clauses can apply to court for repossession if the tenant fails to pay rent within 15 days after the due date," the spokesman said.
Besides, the minimum mandatory relief period for repossession applications made by landlords on the ground of non-payment of rent, i.e. the period for tenants to pay up the rent in arrears to resume the tenancy after the granting of Order for Possession by the Lands Tribunal, is now shortened from a minimum of 28 days to a minimum of seven days. Further, with the Amendment Ordinance, tenants would be entitled to only once, rather than unlimited, such mandatory relief. With the two improvements, the period for general repossession cases would be shortened to 82 days.
The Amendment Ordinance also empowers the Lands Tribunal to make orders to dispose of properties left in the premises by tenants, so as to reduce the difficulties encountered by landlords upon re-entry of the premises.
In safeguarding the interests of tenants, heavier penalties will be imposed on offenders for harassment of tenants and unlawful eviction. Upon conviction, offenders will be subject to a maximum fine of $500,000 and 12-month imprisonment, and a maximum fine of $1 million and three-year imprisonment upon any subsequent conviction.
"The heavier penalty reflects the seriousness of the offences," he said. "As all cases would be thoroughly investigated, landlords need not be worried that their interests would be jeopardized," he reiterated.
Other improvements for tenants include an improved computation formula for redevelopment cases, which offers higher compensation to tenants and sub-tenants occupying part of the leased premises. With the new formula, the compensation amount would be 10 to 20 percent higher than before.
In addition, the statutory period for tenants to serve notice to request a new tenancy has been reduced. Hence, the period for tenancy renewal would be correspondingly shortened from six - seven months to three - four months.
"Following the passage of the Amendment Ordinance, the Government would conduct a comprehensive review of the Landlord and Tenant (Consolidation) Ordinance, with a view to relaxing all excessive protection of security of tenure and reducing intervention in private tenancies," he added
End/Friday, December 27, 2002
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