Mr Heung owned a vacant flat and had always wanted to let it out. However, he was wary of landlord-tenant disputes, as he had often heard stories about the "professional tenants" who paid one month's advance and two months' deposit upon signing the lease but refused to pay any more rent from then on. He also heard stories that some even coerced their landlords into paying compensation before agreeing to move out. Some tenants, on the other hand, had financial difficulties and upon paying every month's rent there were always three in arrears. The worst kind would, before moving out, cause damage to the furniture and fixtures in the flats. Worried that he might fall into the hands of such tenants, Mr Heung was very careful in choosing a tenant. Thus far, he had not been successful in renting out the flat.
One day, an estate agent introduced to him one Mr Kwong, a prospective tenant. After viewing the flat, Mr Kwong was ready to make an offer of a monthly rental of $8,000. For Mr Heung, it did not matter much if the rent were a little below market value. He told Mr Kwong of his worries and wished Mr Kwong could produce proof of his occupation and income so as to allay his fears. Mr Kwong was rather reluctant at first, fearing that his privacy might be compromised. But he really liked the flat. The agent also tried hard to explain to him that to provide such proof was only to put the landlord at ease since "professional tenants" did exist in the market. In addition, Mr Heung was willing to further reduce the rent. Mr Kwong finally agreed to provide proof of his income. After looking at the proof, Mr Heung felt relieved and signed a lease with Mr Kwong.
To safeguard his interests, the landlord may require the tenant to provide income proof. The tenant has the right to decide whether or not to provide it. However, if the two parties are serious about making a deal, they should both take the first step towards mutual trust and agree to the other party's reasonable request and, wherever possible, provide the relevant information. If the landlord shows the bank's consent to the letting of the property or some proof of mortgage repayment, or if the prospective tenant produces proof of his occupation and income, then mutual trust can be better established and the transaction will certainly proceed more smoothly.
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