Academic Services & Student Affairs Office Renting Accommodation In

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Academic Services & Student Affairs Office Renting Accommodation In The Hong Kong Academy for Performing Arts – Academic Services & Student Affairs Office Renting accommodation in Hong Kong (For reference only) Types of Accommodation: In Hong Kong, housing choices are varied. In general, it can be classified into two types, below is the type of accommodation and the comparison of the rent*: * Prices may vary depending on the demand and supply, size, location and related factors. price per sq. ft.** Pros & Cons. Accommodation @HK$30-$40 (size from 500 Normally fully furnished and cleaned. It also included provided by sq. ft) facilities, but the price is expensive. Property Developer Accommodation Wanchai District (Hong Kong Suitable for long-term stay. Accommodation is available provided by private Island) - in all districts. Different types of accommodation like owner @HK$25-$38 village house, flat and suites, etc. Please be reminded North Point/Western District tenants are usually to pay utility charges including water (Hong Kong Island) - supply, electricity, gas and internet charges, etc. @HK$20-$28 Kowloon & New Territories- @HK$18-$25 **The calculation of the rent is based on square feet. There are two ways to rent a room/flat: a) Direct negotiation with the landlord: Commission fee to a property agent is not applicable. A tenant should check and read the tenancy agreement thoroughly before signing the agreement. b) Assistance or recommendation from a property agent: a commission equivalent to 50% of a monthly rental fee is required (unless otherwise agreed at the time of his/her recommendation). In addition to the monthly rental, please note that there are other expenses (below is based on two persons sharing a rental flat): Security Deposit: equivalent to 2 months’ rent. If any damage is done to the furniture and electric appliance provided by the landlord, security deposit will be used for replacement or repairs to furniture, fittings, etc. Otherwise, security deposit will return upon proper termination of the lease. Water supply: Water supply charges are calculated per month, water bill should be settled by every quarter. On average, water charges for every quarter are about HK$100 subject to usage rate. For opening the Water Supply Account, please go to the website of the Water Supplies Department: http://www.wsd.gov.hk Electricity: Electricity charges are calculated per month, electricity bill should be settled by every two months. On average, electricity charges for every two months are about HK$450 subject to usage rate. For opening an electricity account, please go the following website: HK Electric (HK Island): http://www.heh.com/ China Light and Power (for Kowloon side and New Territories): https://www.clponline.com.hk Pg. 1 of 4 Gas: Some premises on lease may include gas supply, gas charges are calculated per month, gas bill should be settled by every 2 months. On average, the expense for every two months is about HK$300 subject to the usage rate. For opening a gas account, please go to: http://towngas.com Internet: Various internet service providers are on market, the monthly charge may vary subject to the internet uploading and downloading speed. Please be reminded before you open an internet account: 1. Is it necessary to sign a contract? Normally the service provider will require a customer to sign for up to 18-month contract. For early contract termination, the customer is required to pay for the remaining service fee. 2. Some service providers may suggest the customer to pay for other services like HDTV, please consider if additional services suit your needs or not. Looking for Accommodation Before making decision, please consider carefully your budget, location, environment, etc. It is better to seek a friend’s company in the course of negotiation with a potential landlord. Here are the notes you might need to consider before renting an apartment: 1. Make sure to choose a licensed Property agent. 2. You are required to sign an agreement with a Property agent “Estate Agency Agreement for Leasing of Residential Properties in Hong Kong “, items of which included : ¾ Once your lease is confirmed with the assistance and recommendation of a property agent, a commission equivalent to 50% of a monthly rental fee is normally required. ¾ The property agent is required to list out the details of the property including: the size of the property, the purpose of use, etc. ¾ Agency relationship and duties of agent. ¾ Check the property information, etc. For signing a tenancy agreement For those who have registered the tenancy agreement at the Land Office, the Stamp Duty should be borne by the landlord and the tenant in equal terms once both parties signed the tenancy agreement. The purpose of a stamp lease is admissible in evident court and to protect the tenant in case of any disputes arises. 1. Rent Negotiation Rent negotiation, you can discuss with the landlord or through your property agent to negotiate the rent and other payments. In Hong Kong, payments of other than rent like rates, management fee and utilities could be shouldered by the landlord, whilst the tenants are usually liable for water, gas, electricity, and internet charges. 2. Before you sign the lease, please check whether the premises are on mortgage terms. If mortgage terms applied, once the landlord cannot pay for the mortgage, bank has the authority to take the premises. 3. Signing of temporary lease Temporary lease should state clearly who should bear the management fees, government rent, and Inland Revenue taxes and other expenses, and state the rent free period (normally is 7 days), and when the rent will be Pg. 2 of 4 started, etc. For some of the landlords, they might require you to submit the proof of staying in Hong Kong, or proof of asset certification. 4. For signing the lease, and pay the commission fee to property agent: Make sure you read the lease thoroughly before signing the tenancy agreement and pay the commission fee. Please pay particular attention to the following points: 1. The landlord and tenant – are they correctly named? 2. The length of the lease – is this a stated period for which the agreement will run (normally it is 1 year fixed lease, 1 year flexible lease) – subject to mutual agreement. 3. Payment method –To avoid dispute, it is always advisable to settle the rent through bank by a cheque and retain the cheque counterfoil and bank statement showing the cheque has been drawn. For cash payment, the landlord should provide receipts right upon receiving the cash. 4. The responsibility of property maintenance 5. If there are damages at the premises, should the landlord agree to pay for the maintenance? If the agreement says nothing about maintenance and repair, the tenant must use the premises in a “tenant-like manner". This means he should perform small jobs such as mending fuses, stopping drains and cleaning windows. 6. What if the tenant/landlord want to change or renew the lease 7. What if the tenant/landlord breach of contract? 5. Settle the fee which is borne by two parties. Flat/Room Inspection Some notes should take into account when the tenant inspects the room/flat. 1. Is the furniture or electrical appliance(s) in good condition? 2. Check the meter no. of gas, electricity and water supplies. 3. Is the door, door lock in good condition? 4. Are the main door or other doors are smooth to open/close? 5. Any drainage from window or any broken windowpane? 6. Any drainage from water basin, or leaky pipe? 7. Any defects of the main drains, pipes and cables? 8. Any defects of the floor? 9. Any defects of the Gas supplies pipe? 10. Any cracked plaster from the ceiling? 11. Are the water heater and air-conditioner in good condition? Return the premises Any major breach of the tenants’ obligations to the Agreement will entitle the landlord to forfeit the lease and start proceedings for possession. The common breaches giving rise to forfeiture are non-payment of rent, subletting and using the premises for illegitimate purposes. For example, if the tenant has signed for a 12-month term and depart after paying a rent of 10-month only, the landlord is entitled to the outstanding rent and can sue for damages by law, though he/she might deduct the debt from the deposit (if the amount offset one another) rather than starting a court action for arrears of rent. Pg. 3 of 4 Please visit the following website for the availability of accommodation: Hong Kong Property Web - www.28hse.com Go Home.com.hk : www.gohome.com.hk Home.hk - www.home-hk.com Centaline Property Agency Limited – www.centanet.com Midland Holdings – www.midland.com.hk Ricacorp – www.ricacorp.com Hong Kong Property – www.hkp.com.hk Century 21 Hong Kong – http://century21-hk.com August 2010 Pg. 4 of 4 .
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