Hong Kong Ordinances

LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE - SECT 63

Increase in rent of sub-tenancy on account of rates

(1) Where-

   (a)  a principal tenant bears the rates in respect of any premises the
        subject of a tenancy out of which a sub-tenancy has been created and
        there is an increase in the amount of rates payable;

   (b)  rates are imposed in respect of any premises the subject of a tenancy
        out of which a sub-tenancy has been created and the principal  tenant
        bears those rates; or

   (c)  the rent of a tenancy has been increased under section 56 or 56A and a
        sub-tenancy has been created out of that tenancy, the principal tenant
        may, if he cannot agree with the sub-tenant an increase in rent of the
        sub-tenancy, apply to the Commissioner in the specified form for a
        certificate under subsection (2).

(1A) For the purposes of subsection (1)(b), rates shall be deemed not to be
imposed where rates become payable by reason only that the premises cease to
be exempt from assessment to or payment of rates under section 36 of the
Rating Ordinance ( Cap 116). (Added 29 of 1983 s. 21)

(2) On receipt of an application under subsection (1) the Commissioner shall
make such apportionment or aggregation of the rates as he considers necessary
to determine the amount of rates attributable to the premises the subject of
the sub-tenancy and shall serve on the principal tenant and on the sub-tenant
certificates in the specified form stating the amount by which the rent of the
sub-tenancy may be increased.

(3) Where the Commissioner has served a certificate under subsection (2), the
rent of the sub-tenancy may be increased by the amount shown in the
certificate, but the increase in rent shall not take effect except in
pursuance of a notice of increase in the specified form served by the
principal tenant on the sub-tenant specifying the date from which the increase
is to take effect.

(4) The date specified in a notice of increase under subsection (3) shall be
not earlier than-

   (a)  the date from which the increased rates or the rates imposed, as the
        case may be, are payable;

   (b)  the date on which the increase in rent of the principal tenancy on
        account of rates became payable; or

   (c)  24 months prior to the date of service of the notice of increase on
        the sub-tenant, whichever is the later. (Amended 29 of 1983 s. 21)
        (Replaced 10 of 1975 s. 11)