At least 20 per cent of tenants in Hong Kong’s subdivided flats could be overcharged for utilities, survey shows
- More than 300 such tenants polled by Concerning Grassroot Housing Rights Alliance, findings show only 32 tenants’ leases covered by new law regulating rent increases
- Landlords for only 19 per cent of the 32 tenants provided water and electricity bills for reference, meaning the rest may have no idea if they are being overcharged
At least 20 per cent of tenants in Hong Kong’s subdivided flats are suspected of being overcharged for utilities despite recent legislation that caps rent increases for such premises, a survey has found.
Concerning Grassroot Housing Rights Alliance on Monday said it had interviewed more than 300 tenants of subdivided flats through an online survey carried out in April.
The findings showed only 32 tenants’ leases were covered by the new tenancy regulation, which took effect in January, with 20 per cent to 50 per cent of these residents still subject to unreasonably high water and electricity charges, regardless of whether their lease agreements were old or new.
“Many subdivided flat tenants are suspected to have been overcharged for utilities. It reflects that landlords are not following the regulation, or are even disobeying the law. If the situation continues, the law will only be an empty shell,” said Cheung Wing-yan, a researcher of the alliance.
Under the legislation which caps rent increases for subdivided flats at no more than 10 per cent per two-year lease period, occupants and landlords are required to sign a standard tenancy agreement setting out the rent amount, a deposit, utility charges and fees for any breach of the contract. Landlords must pay for stamp duty and get a stamp certificate for the lease.
The law also stipulates that electricity and water charges for all tenants in a subdivided unit must not exceed the total amount stated in the bills for the whole unit. Those who breach the rule will face a fine of at least HK$10,000 (US$1,270).
Yet the poll found only 19 per cent of the 32 tenants said their landlords provided water and electricity bills for reference, meaning the rest might have no idea whether they were overcharged.
Of the 32 tenants, one was unable to provide information on the utility charges paid. About 45 per cent of the remaining 31 tenants were charged HK$10 to HK$14 per cubic meter for water and some 20 per cent were paying HK$15 to HK$19, while four tenants said they paid according to the bills shown. The rest were either paying a lower fee, unclear about the rate or had charges covered as part of rent.