In a written reply to the Legislative Council on 28 October 2026, the Secretary for Housing reported registration applications covering more than 75,000 subdivided units, about 70% of the estimated stock, under the Basic Housing Units Ordinance (Cap. 658). The registration period closes on 28 February 2027, and the offence of letting a subdivided unit with neither registration nor recognition applies from 1 March 2027. For many owners the real question is simpler: is the flat let as one home to one household, or carved into rooms for separate tenants? The answer decides which tenancy agreement you sign, which form goes to the Rating and Valuation Department and which offences can apply. This guide is written for landlords and tenants of whole flats.
What a Hong Kong tenancy agreement covers, and what it does not
A tenancy agreement for a whole flat gives one tenant, or joint tenants, exclusive possession of self-contained domestic premises for a fixed term. The parties are largely free to fix the rent, the term and the break clause, and the tenant has no statutory right to stay on once the term ends. A subdivided unit works differently. The Government describes it as a flat whose partitioned layout no longer matches the reference building plan and now has two or more compartments designed for separate domestic tenancies. Rooms let on that basis are generally regulated tenancies under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) and call for a subdivided unit tenancy agreement under Part IVA.
The distinction matters more than the label on the document. A flat let to a family or to flatmates who share it under one agreement remains a single letting, even if the occupiers divide the bedrooms among themselves. Under Cap. 658, what creates subdivided units is partitioning combined with separate tenancies for each compartment, while Part IVA casts a wider net and can catch a single room or bedspace let as a tenant's home. In practice the risk sits with owners who took over a partitioned flat from a previous operator, and with landlords whose tenant starts letting rooms without asking. The rest of this article assumes a flat, house or village house let to one household for two years.
Legal framework
Ordinary domestic tenancies sit in Part IV of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7). Since the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2004, a fixed-term tenancy created after the amendment ends when its term expires, with no notice to quit and no security of tenure. Where the agreement is silent, Cap. 7 implies a covenant to pay rent on the due date and a right to forfeit after 15 days of non-payment. The GovHK guide to leasing out a domestic property sets out the landlord's paperwork. Under the Stamp Duty Ordinance (Cap. 117), the agreement must be stamped within 30 days of execution, and an unstamped document cannot be admitted in evidence. A lease for more than three years must also be registered at the Land Registry within one month.
Subdivided units follow a separate track. Part IVA of Cap. 7 gives a regulated tenant two consecutive two-year terms, so four years of security of tenure, and requires the landlord to lodge Form AR2 with the Commissioner of Rating and Valuation within 60 days. The Basic Housing Units Ordinance (Cap. 658) adds minimum standards for area, height, fire and structural safety, a separate toilet, water supply, lighting, ventilation and separate water and electricity meters. Section 8, which makes it an offence to let a subdivided unit without a valid grace-period registration or recognition, was commenced one year after the rest of the Ordinance. None of this applies to a whole flat let to one household, and the Hong Kong real estate templates follow the same split.
The Basic Housing Units deadline seen from a whole-flat landlord
The Legislative Council reply shows why the deadline reaches beyond operators of partitioned flats. The Government counts roughly 110,000 subdivided units and estimates that about 30% may need substantial alteration works before recognition. Some owners will decide the works are not worth it and let the flat as a single home, since one domestic tenancy of the entire flat falls outside the Ordinance even if the partitions stay. That is a lawful route, provided the existing regulated tenancies are first ended in the way Part IVA allows, and the next letting becomes an ordinary tenancy with Form CR109 and freely negotiated terms. Do not re-use a subdivided unit agreement for the whole flat, because its statutory terms on rent, deposit and early termination belong to a regime that no longer applies.
The second risk runs the other way. A tenant who puts up partitions and lets rooms to others turns your flat into subdivided units without your knowledge. Occupiers of an unrecognised unit are not criminally liable, but section 8 is aimed at the person who lets the unit out, and the owner is left with enforcement questions and a slow recovery of possession. The protection has to be in the contract from the first day: a ban on partitions and alterations without consent, a prohibition on sub-letting and sharing possession, a limit on occupiers and a right of re-entry if those terms are broken.
Stamping, Form CR109 and the paperwork after signing
The stamp duty clock runs from the date of execution, not from the commencement date, so an agreement signed in one month to start in the next can already be late. Stamping can be done online, by post or at the Stamp Office, and landlord and tenant are both liable for the duty, which they usually share. Within one month of executing the agreement, the landlord should also lodge Form CR109, the Notice of New Letting or Renewal Agreement, with the Rating and Valuation Department for endorsement. Without the endorsed notice, a landlord cannot sue for the rent. The stamping and Form CR109 pack for Hong Kong tenancies prepares both steps from the dates of your signed agreement.
The tax side follows the same logic. Rental income is charged to property tax in the owner's hands, and a landlord who has not received a tax return must notify the Inland Revenue Department in writing within four months after the end of the basis period. Rates, Government rent and management fees can be put on either party, and the choice belongs in the agreement. Keep the stamped original, the endorsed CR109 and the signed inventory together, because those papers decide most deposit disputes and any claim before the Lands Tribunal.
How to prepare a tenancy agreement with Captain.Legal
The Hong Kong tenancy agreement template for a whole flat is built as a two-year fixed term, with a break right on two or three months' written notice that cannot expire before the end of the twelfth month. The questionnaire starts with the landlord, an individual or a company with its registration number and signatory, then one tenant or two joint tenants, and an optional guarantor. You then describe the premises: address, district, saleable area, type (flat, duplex, house or village house), furnished or not, the items listed in the Schedule and any car parking space. The dates follow: date of the agreement, commencement date and expiry date, which should fall on the day before the second anniversary.
You then choose the notice period and the deposit in months, enter the monthly rent and deposit amount, and pick bank transfer, cheque or autopay. A last step settles whether rates, Government rent and management fees are included in the rent and whether pets are allowed. Fixed clauses cover stamping, CR109 endorsement, the landlord's confirmation that the premises are not a subdivided unit, the ban on partitions and sub-letting, re-entry after 15 days of arrears and the Lands Tribunal. You review the draft, then download it in Word or PDF for signature in front of a witness.
Common mistakes landlords make in Hong Kong
The most frequent error is treating the agency's short memorandum as a formality. A signed provisional agreement can already bind both sides, and the deposit paid on it is at stake if either party walks away. The second is a break clause that does not say whether notice may be served during the first year, which leaves both sides arguing over the earliest date the tenancy can end. The third is holding the deposit without a written refund mechanism, which invites a dispute over every mark on the wall. A fourth, more serious under the new regime, is silence on partitions and sharing.
Landlords also let the CR109 deadline pass and only find out when a tenant stops paying, so the late lodgement has to be sorted out before any claim. Others change the locks or cut the electricity after a few weeks of arrears, which exposes them to damages and to criminal liability under Cap. 7 for unlawful eviction or harassment. The lawful route is a written demand, then forfeiture and an application to the Lands Tribunal for possession. Finally, most mortgages require the lender's prior consent to a letting, and a letting without it can put the loan in default.
Frequently asked questions
Is a tenancy agreement legally binding in Hong Kong if it has not been stamped?
Yes, an unstamped tenancy agreement still binds the parties as a contract, but it is of little use when you need it most. The Stamp Duty Ordinance (Cap. 117) stops an unstamped instrument from being admitted in evidence in civil proceedings until the duty and any penalty for late stamping are paid. A landlord suing for arrears, or a tenant claiming back a deposit, therefore has to stamp first and argue later. Stamping within 30 days of signing avoids the whole issue.
How long do I have to stamp a lease and lodge Form CR109?
Two clocks start at signature. Stamping must be completed within 30 days of execution, whatever commencement date the agreement shows. Form CR109 should reach the Rating and Valuation Department within one month of executing the agreement; the department endorses it and sends a copy to each party, and a late lodgement is still accepted for a fee. For a subdivided unit under a regulated tenancy, the form is AR2 instead, with a 60-day deadline counted from the start of the term.
Can I download the tenancy agreement in Word or PDF?
Yes. Once you have answered the questions and reviewed the draft, the finished agreement is available in Word and PDF. The Word file lets you edit a clause or add special terms, such as a diplomatic clause, before signing. The PDF suits a version both parties have already accepted. Either way, print two copies, sign in front of a witness, send the agreement for stamping and give the tenant the stamped counterpart.
Does the Basic Housing Units Ordinance apply if I let my whole flat to one family?
No, as long as the flat is let as one unit. The Basic Housing Units Ordinance (Cap. 658) targets flats partitioned into two or more compartments for separate domestic tenancies, and its registration system concerns those subdivided units only. A family or flatmates holding one agreement for the whole flat fall outside it. The position changes once partitions go up and rooms are let separately, whoever does it, which is why a landlord should inspect the flat during the term rather than wait for the handover.
Can my tenant's foreign domestic helper live in the flat?
Yes. The use clause allows occupation by the tenant and the tenant's immediate family or household, and a live-in helper is normally treated as part of the household. The Standard Employment Contract requires a foreign domestic helper to work and reside at the employer's residence stated in the contract, so the tenant should give the rented flat's address in the employment papers. A tenant hiring a helper can use the hiring pack for a foreign domestic helper alongside the Government contract.
Can I sign a tenancy agreement through an attorney while living overseas?
Yes. An owner living abroad can appoint someone in Hong Kong under the Powers of Attorney Ordinance (Cap. 31) to sign the agreement, collect the rent and deal with the Stamp Office and the Rating and Valuation Department. The attorney signs in the owner's name and should show the tenant a copy of the power. A general power of attorney executed as a deed can cover all your affairs or only the letting of one property. It ends if the owner loses mental capacity, so it does not replace an enduring power.