Reminding landlord clients of subdivided units not to overcharge charges for utilities and services

 The Government implemented a new tenancy control regime on subdivided units (“SDUs”) under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (“Ordinance”) which came into effect on 22 January 2022. Since licensees may handle tenancies in respect of SDUs which are subject to Part IVA of the Ordinance (i.e. “regulated tenancies”), the Estate Agents Authority issued a practice circular (No. 22-01 (CR)) setting out the relevant guidelines for licensees to follow, which came into effect on the same date as Part IVA of the Ordinance.

As non-compliance with the requirements under Part IVA of the Ordinance may constitute an offence under the law, licensees are required to draw their clients’ attention to the relevant offences and penalties. Amongst which, licensees are required to draw the clients’ attention that it would constitute an offence under the Ordinance if the landlord requires the tenant to pay for, or the landlord otherwise receives from the tenant, the reimbursement of the charges for any of the specified utilities and services for the SDU at a sum exceeding the apportioned amount for the SDU as shown in the account in writing provided by the landlord to the tenant.

Concerning the issue of water charges and water meter in respect of SDUs, licensees may bring to their landlord clients’ attention that the Water Service Department (“WSD”) has launched a Pilot Scheme for Installation of Separate Water Meter for Subdivided Units for application by the landlord of the premises. For details, please refer to the relevant leaflets uploaded on the website of WSD.

(14 September 2022)