Rent control viable through standard contracts

Michael Shum

Rent increases for partitioned flats should be capped via standardized contracts, a task force will recommend to the government when it submits its report next month.

The chairman of the Task Force for the Study on Tenancy Control of Subdivided Units, William Leung Wing-cheung, said members expressed a preference for regulating rent increases, but not the initial rent landlords charge tenants.

"After considering advice from legal experts who said private property rights are safeguarded under the Basic Law and the Hong Kong Bill of Rights, our proposal will not use vigorous measures to control the rent of subdivided flats," Leung said.

"This would allow the policy to be implemented in a short period of time and avoid legal challenges."

Leung said the task force expressed a preference for having landlords sign a standardized contract that will clearly state the rental period, increases in rent, responsibility for repair and maintenance, and utility fees.

The standardized contract will prevent landlords from overcharging with fees, said Leung. However, details on the percentage increase in rent and the minimum time in between still have to be hammered out by the task force.

"But the proposal will not touch on improvements to the environment of the subdivided flats this time, as grassroots citizens will be the victims if the policy causes the cheapest subdivided flats to disappear," he said.

Leung also said they are studying setting up an informative platform on subdivided flats.

"The platform is intended to allow tenants to find out what the general rent is in different districts, which will prevent landlords from setting rents that are too high," he said.

However, the task force said they hoped landlords would not drive away their tenants and raise rents to safeguard their own interests.

"According to a study by our consultants, 85 percent of tenants have signed a contract with their landlords. This shows that there is only a small proportion of evil landlords, and landlords normally do not hope for high tenant turnover," he said.

Meanwhile, the Secretary for Housing and Transport, Frank Chan Fan, said tenancy control over subdivided flats is imperative, adding that he hopes the bill will be scrutinized in the Legislative Council before summer.

"Residents in subdivided flats are living a very hard life. The government is building transitional housing while finding land to build houses, and I hope more guest houses and hotels will contact the government and join hands in providing more transitional housing units," Chan said.

michael.shum@singtaonewscorp.com