Hong Kong’s subdivided flat tenants welcome task force call to keep rents under control, but are not sure how the system will work
- Many tenants also believe rent increase of no more than 15 per cent is still too high
- Concern group member Kenny Ng says consumer price index could be used as a reference for pegging rent rise
Tenants of Hong Kong’s subdivided flats have welcomed the idea of keeping their rent levels under control, but said they struggle to understand how the mechanism will work and feel a maximum rent increase of 15 per cent is too high.
Housewife Ho Mei-ying, 34, lives with her family of four in a 100 sq ft subdivided flat on the eighth floor of a walk-up building in Cheung Sha Wan. They currently pay HK$4,100 (US$527) per month, including HK$3,400 in rent and about HK$700 for utilities.
The four sleep on a bunk bed that takes up most of the flat. Ho cooks vegetables and congee just three steps away from the toilet.
According to Ho, the landlord said her family had been given a HK$100 rent discount last October, but they still had to pay more each month because of increases in their utility bill. “The landlords are very clever, they just raise the water and electricity fees to cover the ‘discount’ and earn more money,” Ho said.
She welcomed the recommendations of a government-appointed task force to mandate a standard tenancy agreement.
The task force’s report, released on Wednesday, suggests that to keep rents in check under the future legislation, subdivided flats should be brought under rent control arrangements tied to an existing official index that reflects the general residential market. It also suggests raises be capped at 15 per cent.
The report says that tenants should only need to pay the rent, deposit, utility charges and fees for any breaches, and nothing else. If no individual electricity or water meter is installed, the landlord will need to provide a copy of the utility bill and a breakdown of the apportionment among the tenants of the flat.