Online listings of property are helpful, but potential tenants are still advised to pick a reliable and trustworthy agent. “Some agents are only fee-motivated and would only recommend properties they can get the highest fee from,” said KS Koh, CEO and founder of Landscope Realty. Nevertheless, a good agent should be able to avoid potential problems and common pitfalls.

“Preview the listings online and make a shortlist and then request a viewing,” Koh said, adding that it is advisable for a tenant to see at least five to six properties to get a feel for Hong Kong’s real estate market, before jumping in.

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A professional agent should also be able to walk a client through every stage of the process, from “search to viewing to submitting an offer and signing a tenancy agreement”, said Casalino.

What should tenants communicate to their landlords?

Koh advises potential tenants to make an offer about 15 per cent below the asking price. The potential tenant should also make clear to the selling agents and landlord any specific requests conditional to the offer, such as replacing a faulty stove or replacing a bed.

Before signing any contract, the agent should be able to explain the full terms of the lease to the tenant, said Victoria Allan, founder and managing director of Habitat Property. Common things to look at include “break clauses” and fixtures and fittings the tenant may be responsible for over the lifetime of the lease.

Do expats need to have a bank account prior to signing a rent contract?

“When negotiating a new lease, tenants need to have a bank account in Hong Kong, and opening one usually takes some time,” Casalino said.

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With landlords typically asking for a deposit of two to three months’ rent upfront, and deposits needed to set up new utility accounts and money needed to pay stamp duty and agency fees, tenants need to make sure they have the funds to cover this initial outlay.

What are the best tips for expats looking to rent a home in Hong Kong?

“For the same budget, Hong Kong flats are smaller than expats are accustomed to,” Casalino said. “Often, newcomers have an idea of the area they want to live in or style of place, but realise later with the right help that a different neighbourhood or style fits their needs better.”

For many expats, Mid-Levels and the Southside may initially sound perfect, but later on they realise that an old, colonial “larger” flat at the beach is more suitable for the family. Some may want a short commute, while others may be able to handle a longer distance to work given the city’s excellent transport links.

“The transition takes some time to understand, but, really, there is a place for everyone to call home,” Casalino said.

The sooner an expat settles into a permanent abode, the easier it will be to adjust and settle down, according to Allan.

“It’s [sometimes] worth renting temporary furniture until the [overseas] shipment arrives and try not to be in serviced flats longer than necessary,” she said.

Are Hong Kong flats smaller than most expats expect?

“The most difficult step for expats coming to Hong Kong is adjusting to the level of finish and pricing in Hong Kong compared to other global markets,” said Allan. “Also the size is often smaller – especially for American and Australian expats who are used to living in a large house. Many Hong Kong flats can also be slightly dated and that can be very difficult to adjust to, especially given the high price points.”

Koh gave the same advice: “Be prepared to accept much less space for the same money you spend elsewhere.”

How is the Hong Kong rental market different from other property markets?

Lease terms are likely to be different, said Casalino.

For example, in Hong Kong, a standard tenancy agreement revolves around a two-year lease with a 12-month fixed lease plus a one-to-three months’ notice period to exit the property. The notice period is typically known as the “break clause” which allows either party to cancel the lease with one-to-three months’ notice, depending on the terms and conditions negotiated.

South Korea has a similar system, usually a two-year lease contract with a one-month notice period. Another option is the lump sum system, where the full two-year lease can be paid upfront to a landlord, with the tenant then paying monthly management fees only.

By comparison, in the US tenants typically sign a one-year fixed lease that is negotiated and renewed annually. In Switzerland and France, it is also usual to sign a one-year lease at first. Tenants, typically, are required to submit their credentials and then landlords choose their preferred candidate if there is more than one application, Casalino said.

Finally, is it a good time to rent in Hong Kong now?

“It’s the bottom of the market – seize it now,” Koh said, referring to a market that is well off its highs after several years of strict pandemic controls and social unrest due to the implementation in 2020 of a new national security law.