Hong Kong Ordinances

LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE - SECT 55A

Increase in rent on account of improvements

(1) Where the landlord of any premises incurs expenditure of $5000 or more on
improvements to such premises, the landlord may, subject to subsection (2),
increase the rent payable in respect of those premises by 20% per annum of the
amount expended on the improvements.

(2) Where rent is increased under this section 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.

(3) The date specified in a notice of increase under subsection (2) shall be
not earlier than the first day when rent becomes due after the expiry of one
month from the service of the notice.

(4) 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.

(5) Subject to subsection (6), 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 (2)
may be aggregated.

(6) No account shall be taken of-

   (a)  (i) in the case of a tenancy of premises to which this Part applied
        prior to 18 December 1979, expenditure incurred prior to 9 July 1976;

        (ii)   in any other case, expenditure incurred prior to 18 December
               1979; (Replaced 6 of 1980 s. 8)

   (b)  expenditure in respect of which an increase in rent has previously
        been made under this section.

(7) Where a landlord serves on a tenant a notice of increase under subsection
(2), the landlord shall send a copy of that notice to the Commissioner.

(8) A tenant on whom a notice of increase in rent is served under this section
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

(4), that the apportionment was unreasonable, and the Tribunal may make an
order accordingly. (Amended 76 of 1981 s. 40)

(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;

"landlord" (業主) includes principal tenant;

"tenant" (租客) includes sub-tenant. (Added 56 of 1976 s. 5) [cf. 1968 c. 23
ss. 25 & 38 U.K.]

"improvement" (改善)

"landlord" (業主)

"tenant" (租客)