renting out a property

Hi,

Im about to rent out my HK flat. I'm a first timer at this so any advice is appreciated.


I will be renting out my place fully furnished.


My main question is; can I get a generic tenancy agreement from a shop or download off the internet?


I have fire and water damage insurance cover through my management fees. Do I need any extra cover to cover the contents or is this part of the tenants responsibility?


Is there anything I need to watch out for?


thanks in advance

I would suggest you post a Direct Owner ad on Hong Kong's Number One Property Site!


http://hongkong.asiaxpat.com/property/

check your potential tenants' job, contract, company's name. the last thing you want is a tenant who does not pay rent.

If you're renting the flat fully furnished then you should insure the contents. The tenant probably won't bother.


Yes you can buy a generic Tenancy Agreement from stationers, although I've never been able to find one because I don't know how to ask for one in Cantonese!


If you go through an agent, most of them have their own standard lease agreements and they'll be able to explain anything you don't understand. I'm an agent myself so obviously am a bit biased, but I would strongly recommend going through an agent especially as this is your first time.


If you don't use an agent, then make sure you fully understand all the terms of the tenancy agreement, and that your tenant understands them. Make sure you have full information on your tenant, including a letter from their employers confirming their employment. And remember to submit form CR109 to the Ratings and Valuation Department. Some landlords refuse to do this because they're worried that their rates will be increased - maybe they will be, but if you don't submit the form, and your tenant defaults on rent payment, you can't take them to court.


Remember to close utility accounts and let the tenant open new accounts in his/her name. If you prefer to keep them in your name, work out how you're going to get the tenant to pay.

Thanks Ed, but at the moment I have a few interested parties at work...


loyd, that would be great if you could emial me a copy!


What is the norm for managment fees? I just assumed the landlord paid them. I have done a google search and found some good info on various real estate sites aswell.

Good point about smokers, I hadnt even thought about that....

Thanks K.W.

good advices there lgmv.

I have seen on a few sites that the tenant pays the 'property tax' (goverment rates) and the land lord pays the goverment rent. Is this correct. And it is also normal to split the stamp duty? I'm just going to do it online on the day.

With regards to the stamp there are two different ways to be charged; .25 or .5%. If I intend to have a 2 year contract with a 13 month break clause, Im I correct to say I will have to pay .5%?

I just want to have all the facts straight before I meet with the potential tenant.


thanks K.M.

Hi again,

What sort of insurence should a landlord carry on furnished apartment. I can accept that there will be wear and tear, and so I am not attached to anything in the apartment. Am I required to have contents insurence? I would have thought the Tenant would have some sort of insurence to cover themselves from any damage caused by them?

I have fire and water cover included in the managment fees for our building, is this enough? The apartment is in Tung Chung and managed by MTR. Do I need extra to protect myself?

I have put in a clause in the agreement to indemnify the landlord if the tenant should cause any water damage from overflow. the potential tenant has informed me that this should be insured for by the landlord, is this correct?

What is the normal time period to return the security deposit to the tenant after they move out? I had within 30 days in my agreement, but the tenant wants it onthe day the landlord takes the property back, I see no problem with this but is there anything I am missing here?

What is the standard break clause? I had put in 2 months, tenant wants 1 month?

I am renting this apartment fully furnished, do I have to place a clause stating the tenant is not to remove or sell any of the furniture fitted?

sorry for all the simple questions, but I have heard some horror stories where even the skirting boards were removed. How much detail do I exactly have to put in the agreement???

Cheers again K.M.

cheers Loyd, thanks again for the advice. i'll be off to check out some insurance this week...