IN THESE days of escalating residential rents it is important tenants know their rights to protect themselves from unscrupulous landlords.
There are two popular misconceptions in Hong Kong regarding rent increases when a tenancy is renewed. One is that rents can only be increased 30 per cent and the other is that landlords can charge whatever they like.
Both are wrong. Most residential tenancies are protected by the Landlord and Tenant (Consolidation) Ordinance and are subject to either part I, II or IV.
Briefly, part I applies to pre-war premises (those built before August 17, 1945), part II applies to post-war premises, except those completed on or after June 19, 1981, or those with a rateable value of $30,000 or more as at June 10, 1983.
Part II does not apply to tenancies created on or after June 10, 1983, relating to a fresh letting. Part IV applies to all residential tenancies, with some minor exceptions, excluded from parts I and II; i.e. to premises completed on or after June 19, 1981; or premises with a rateable value of $30,000 or more as at June 10, 1983; or tenancies created on or after June 10, 1983, relating to a fresh letting of post-war premises irrespective of their age.
Rentals of part I tenancies can be increased to the ''permitted rent'' which is currently the greater of 55 times the rent payable on December 25, 1941, or 60 per cent of the prevailing market rent.