Hong Kong Ordinances

LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE - SECT 10

Permitted increases and adjustments

(1) Subject to section 9A but without prejudice to section 9B, there shall be
payable and recoverable by way of rent of premises to which this Part applies
the following amounts-

   (a)  in respect of any period before 1 July 1994, an amount equal to 55
        times the standard rent of the premises or 60% of the
        prevailing market  rent of the premises, whichever is the greater;

   (b)  in respect of any period after 30 June 1994 and before 1 July 1995, an
        amount equal to 65 times the standard rent of the premises or 70% of
        the prevailing market rent of the premises, whichever is the greater;

   (c)  in respect of any period after 30 June 1995 and before 1 July 1996, an
        amount equal to 75 times the standard rent of the premises or 80% of
        the prevailing market rent of the premises, whichever is the greater;

   (d)  in respect of any period after 30 June 1996, an amount equal to 85
        times the standard rent of the premises or 90% of the
        prevailing market  rent of the premises, whichever is the greater.
        (Replaced 53 of 1993 s. 7)

(1A) If at any date within the period specified in paragraph (a),

   (b)  , (c) or (d) of subsection (1) the rent of any premises is less than
        the rent permitted under that paragraph, the landlord may-

   (a)  subject to section 10H and subsections (1B) and (1C), by serving on
        the tenant on that date a notice in the specified form, increase the
        rent to an amount equal to the multiple of the standard rent of the
        premises specified in that paragraph; or

   (b)  on that date apply to the Commissioner in the specified form for a
        certificate under section 10D. (Replaced 53 of 1993 s. 7)

(1B) Any increase in rent under subsection (1A)(a) shall take effect not
earlier than the first day when rent becomes due after the expiration of one
month from the service of the notice. (Added 93 of 1975 s. 3. Amended 53 of
1993 s. 7)

(1C) Where a landlord serves a notice on the tenant under subsection (1A)(a)
he shall, at the same time, send a copy of the notice to the Commissioner.
(Added 93 of 1975 s. 3. Amended 39 of 1976 s. 6; 53 of 1993 s. 7)

(2) Where as part of the tenancy agreement furniture is provided for the use
of the tenant, the references in subsection (1) to an amount equal to a
multiple of the standard rent of the premises shall be treated as references
to such an amount plus such a charge for the use of that furniture (whether
expressed by way of rent or otherwise) as, having regard to the value of that
use to the tenant, is reasonable: But this subsection shall not apply until
the landlord has specified by notice in writing to the tenant the
consideration (whether by way of rent or otherwise) that he attributes to the
furniture. (Replaced 53 of 1993 s. 7)

(3) Where the landlord of any premises incurs expenditure of $5000 or more on
improvements to such premises, the landlord may increase the rent payable in
respect of those premises by 20% per annum of the amount expended on the
improvements. (Replaced 76 of 1981 s. 9)

(3AA) Where rent is increased under subsection (3), the increase shall not
take effect except in pursuance of a notice of increase in the specified form
served by the landlord on the tenant, specifying the increase and the date
from which it is to take effect. (Added 76 of 1981 s. 9)

(3AB) The date specified in a notice of increase under subsection (3AA) shall
be not earlier than the first day when rent becomes due after the expiry of
one month from the service of the notice. (Added 76 of 1981 s. 9)

(3AC) Where the landlord of any premises incurs expenditure of $5000 or more
on improvements to such premises and those premises comprise 2 or more
tenements then the amount expended shall be apportioned between the tenements
and the rent payable in respect of any tenement may be increased in accordance
with this section by reference to the part of the expenditure apportioned to
it. (Added 76 of 1981 s. 9)

(3A) In determining the amount of expenditure incurred on improvements,
expenditure incurred in the 6 months immediately prior to the date of service
of the notice of increase under subsection (3AA) may be aggregated. (Replaced
76 of 1981 s. 9)

(3B) No account shall be taken of-

   (a)  expenditure incurred prior to the commencement of the Landlord and
        Tenant (Consolidation) (Amendment) Ordinance 1976 (56 of 1976);

   (b)  expenditure in respect of which an increase in rent has previously
        been made under this section; or (Added 56 of 1976 s. 2. Amended 53 of
        1993 s. 7)

   (c)  expenditure which has been taken into account when a certificate was
        issued under section 10E. (Added 53 of 1993 s. 7)

(3BA) Where a landlord serves on a tenant a notice of increase under
subsection (3AA), the landlord shall send a copy of that notice to the
Commissioner. (Added 76 of 1981 s. 9)

(3BB) A tenant on whom a notice of increase in rent is served under subsection
(3AA) may, not later than one month after the service of the notice, apply to
the Tribunal for an order cancelling or reducing the increase on the ground-

   (a)  that the improvement was unnecessary: Provided that where the premises
        the subject of the improvement comprise 3 or more tenements and more
        than two-thirds of the tenants of those premises (other than
        sub-tenants) have consented in writing to the improvement, the
        improvement shall be deemed to be necessary;

   (b)  that a greater amount was expended on the improvement than was
        reasonable; or

   (c)  where the increase follows an apportionment under subsection

(3AC), that the apportionment was unreasonable, and the Tribunal may make an
order accordingly. (Added 76 of 1981 s. 9)

(4) If the Commissioner is satisfied on the application of a landlord or
tenant of premises that the services and facilities which the landlord is
liable to provide under the tenancy agreement differ from those which the
landlord was liable to provide under the tenancy agreement by reference to
which the standard rent was ascertained, the Commissioner may adjust the
standard rent accordingly and upon such adjustment the rent substituted by the
Commissioner shall be and become the standard rent for the purposes of this
Part but without prejudice to further adjustment under this subsection or
under other provisions of this Part. (Amended 76 of 1981 s. 9; 53 of 1993 s.
7)

(5) Nothing in this Part shall be taken to authorize any increase of rent in
respect of a period prior to 23 May 1947.

(6) If any notice served for the purposes of subsection (1) contains any
statement or representation which is false or misleading in any material
respect, the landlord shall be liable on summary conviction to a fine of $1000
unless he proves that the statement was made innocently and without intent to
deceive.

(7) Where the notice of an increase of rent which at the time was valid has
been served on any tenant, the increase may be continued without service of
any fresh notice on any subsequent tenant.

(8) The Legislative Council may by resolution amend subsection (1) by
substituting, for the periods, multipliers and percentages specified in
subsection (1), such periods, multipliers and percentages as may be specified
in the resolution. (Replaced 53 of 1993 s. 7)

(9) In this section-

"improvement" (改善) includes structural alteration, extension or addition
and the provision of additional fixtures and fittings, but does not include
anything done by way of decoration or repair. (Added 76 of 1981 s. 9)

(25 of 1947 s. 6 incorporated)

"improvement" (改善)