At a Glance Typical Lease Duration Two years (one year fixed and one year optional). — After the first year of a typical two-year lease, the tenant has the right to terminate the lease under the break clause. Written termination notice must be given to the Termination landlord two or three months in advance. — Early termination within the first year shall be negotiated between the tenant and the landlord to find replacement tenant and to determine the compensation. Lease Renewal Upon lease expiry, the landlord has the right to take back the property or negotiate the lease renewal with the tenant. Stamp Duty 0.25%-1% of the annual rental value, subject to the lease period. Government Rates Payable quarterly in advance, equivalent to 5% of the annual rental value. Deposit Two to three months’ rent, refundable upon lease expiry, free of interest. Agency Fee Commission equivalent to half month’s rental from the tenant and half month’s rental from the landlord. Legal Fee The tenant may appoint a solicitor to review the lease at his/her discretion for an agreed amount of fee. Property Payable monthly in advance either by the landlord or the tenant, subject to agreement. Management Fee Utilities Consumption is metered and payable by the tenant. — Fixed rent during the lease duration. Rental Payment — Monthly payment in advance. — A delay of more than 15 days could result in forfeiture of contract and premature termination of tenancy. Property Insurance Landlord’s responsibility. Home Insurance Tenant’s responsibility. Sub-letting Not an acceptable market practice. Repair Landlord: responsible for exterior, structure and common areas. Tenant: responsible for interior. Building Tenants should surrender the rental premises in the same condition as when originally Reinstatement leased, normal wear and tear excepted. Note: The above information is for reference only. In case of doubt, please refer to the relevant regulations or seek professional advice. GUIDE FOR LEASING A PROPERTY IN HONG KONG 21