How do rental contracts and deposits work in Hong Kong in 2026?

At minimum, the written agreement should identify landlord and tenant, the exact premises, rent, term, break or diplomatic clauses if any, who pays management fees, rates, and government rent, and how the deposit may be deducted. Fixed two-year terms with a break clause appear often in expat packages; shorter terms also exist. Market practice commonly asks for about two months' deposit held by the landlord, usually without interest, plus the first month's rent on signing.

Stamp the agreement within 30 days of execution at the Inland Revenue Department Stamp Office or through online stamping. For ordinary private leases, landlord and tenant are both liable for stamp duty and often share it by agreement. Estate Agents Authority guidance also points tenants toward checking ownership particulars at the Land Registry when needed.

For many domestic tenancies that are not regulated subdivided-unit tenancies, the landlord should submit a Notice of New Letting or Renewal Agreement (Form CR109) to the Rating and Valuation Department (RVD) within one month. Late filing can attract a fee. Endorsement supports later legal action on rent.

If the flat is a regulated tenancy of a subdivided unit under Part IVA of the Landlord and Tenant (Consolidation) Ordinance, different rules apply. The rental deposit may not exceed two months' rent even if the contract says more. The landlord must return the deposit within the short statutory window after handover when accounts are clear, submit Form AR2 to RVD within 60 days, and bear stamp duty alone. Second-term rent increases face statutory caps tied to RVD rental-index rules.

Photograph every room, meter, and existing damage on move-in day. Record air-con condition and whether furniture listed in the inventory matches reality. Keep receipts for deposit, rent, commission, and stamp duty. Open a local account early so recurring rent clears cleanly: Open a bank account.

Process context: How to rent a home. Price pressure: How much is rent in Hong Kong?.