Leasing Out

Consider if the property will be sold within the rental period. As the market for properties under rental agreements is relatively small, landlords usually have lower bargaining power on the price.

If the property is under the Government Home Ownership Scheme, landlord must pay the land premium and obtain the Certificate for Removal of Alienation Restrictions before leasing the property in the open market.

In general, a written application should be sent to the bank to obtain its consent before making other arrangements to lease out the property. Bank has the right to adjust the mortgage interest rate and the terms and conditions according to the change of the property usage from owner-occupied to leased.

Check the tenant’s proof of employment such as income statements, bank statements, tax forms

Confirm the number of tenant(s) / occupant and their background information.

Request the potential tenant to provide a reference and his/her contact details.

A tenancy agreement for a term not exceeding 3 years can be created and signed underhand; it only requires a simpler method of execution and registration with the Land Registry is not necessary

A lease is a tenancy for a term exceeding 3 years which must be created by deed. The execution of a lease must follow the requirements for execution of a deed. A lease should be registered with the Land Registry.

Name, ID number, correspondence address and contact numbers of both agreement parties

Detailed address of the rental property (based on information registered at the Land Registry) and other information relevant to the rented property such as, the inclusive of the parking space or roof the right of tenant to use the clubhouse facilities

Restrictions on the use of the property.

Rental period, commencement date and date of the tenancy ends.

Payment frequency of the rent (by month, quarter or year), the rental amount; payment method and the handling of the rental payment according to scheduled

Whether the rent is inclusive of rates, Government rent, parking space rental or management fees.

Terms regarding the deposit, for example, upon termination of the tenancy agreement. whether the landloard is entitled to deduct from the deposit the amount of rent and fees in arrears

Terms on the termination of the tenancy agreement

Tenants and landlords should specify their respective responsibilities on maintainence for items such as gas, water and electricity systems, kitchen and bathroom facilities, drainage system, glass of windows and doors, flooring, walls, doors and locks of the rental property

General obligations of the landlord and tenant. For example, tenants should not use the property for any illegal or immoral purpose, and should not cause any annoyance to the landlord or neighbourhood

Confirm the settlement of the advance payment/ and deposit completed before handing over the property

Landlords can request the tenant to set up direct debit authorization for rental payment thatprevent any arrear of payment . After receiving a rental payment, it is necessary to issue a receipt to the tenant

Landlords are suggested to join an home care insurance planwhich can provide protection to the landlord if the property were badly damaged