How to Write a Tenancy Agreement in Hong Kong (2026): Stamp Duty, Landlord and Tenant Ordinance Requirements

What the law requires

The Landlord and Tenant (Consolidation) Ordinance, Cap. 7, is the governing statute for residential tenancies in Hong Kong. The Ordinance was substantially amended in 2021 to introduce a new Part IVA covering subdivided units, but its core provisions on security of tenure, rent control, and landlord obligations apply to most private residential leases.

Cap. 7 does not prescribe a single mandatory form, but it does mandate certain terms. A tenancy must state the premises clearly, identify both parties, set out the rent, specify the term, and include any restrictions on use. If the agreement is silent on a material point covered by the Ordinance, the statutory default applies — which may not match what either party intended.

The Stamp Duty Ordinance (Cap. 117) sits alongside Cap. 7. Under Cap. 117, an unstamped tenancy agreement is inadmissible in any civil proceedings to prove title or enforce rights. That is a high price for saving a few hundred dollars in stamp duty.

Fixed-term vs periodic tenancy: choosing the right structure

Fixed-term tenancies run for a defined period — one year or two years being most common in Hong Kong. The tenant has security for the full term; the landlord cannot terminate early without a breach by the tenant unless a break clause is written in. At expiry, the tenancy does not automatically renew; the parties must sign a fresh agreement or allow the tenancy to continue month-to-month by conduct.

A periodic tenancy — most often month-to-month — is open-ended and terminates on proper notice. Cap. 7 does not prescribe a minimum notice period for periodic residential tenancies in most cases, so the agreement itself should set one out clearly (typically one month's written notice from either side). Without a written term, a periodic tenancy implied by conduct will be measured by the rent payment interval.

Many Hong Kong landlords prefer a two-year fixed term with a break clause exercisable after the first year on one month's notice. This gives tenants reasonable security while preserving landlord flexibility. If you use a break clause, draft it precisely: state who may exercise it, when, how notice must be given, and whether any penalty applies.

Deposit cap rules under Cap. 7

The 2021 amendments introduced deposit caps specifically for subdivided unit tenancies covered by Part IVA. For such units, Cap. 7 limits the security deposit to two months' rent. Landlords of subdivided units who collect more than two months' rent as deposit breach the Ordinance.

For conventional private residential tenancies not caught by Part IVA, there is no statutory cap. Market practice in Hong Kong remains two to three months' deposit, though some landlords of higher-end properties request more. The agreement should state whether the deposit carries interest and the precise conditions and timeline for its return. The IRD expects the deposit amount to appear on the stamped instrument, so do not leave it blank.

Drafting the agreement: what to include

Parties and premises. Name each party fully. For a landlord who is a company, state the Hong Kong Company Registry number. For the premises, include the full address with floor and flat number as it appears in the Land Registry record.

Term and commencement date. State the start and end dates explicitly, or in the case of a periodic tenancy, state "month-to-month commencing [date]." Ambiguity about commencement matters for stamp duty calculation, which uses the actual date of execution or the commencement of the term, whichever is earlier.

Rent and payment mechanics. State the monthly rent in Hong Kong dollars, the date it falls due, the method of payment, and whether any rent-free period applies. If there is a rent-review mechanism, set out the formula or cap clearly.

Use restrictions. Residential premises must be used as a private residence only unless the lease expressly permits otherwise. Subletting typically requires prior written landlord consent. Cap. 7 permits landlords to prohibit subletting entirely, and any such prohibition should be stated explicitly in the agreement.

Repair obligations. By default, the landlord is responsible for structural repairs and keeping the premises in tenantable condition. The agreement should identify which party maintains fixtures, appliances, and finishes, and set a threshold for what counts as routine maintenance versus major repair.

Reinstatement and alterations. State clearly whether the tenant may make alterations and, if so, what the reinstatement obligation is at the end of the tenancy. Courts have held reinstatement clauses enforceable even where the landlord intends to renovate anyway, so draft this with the practical outcome in mind.

Break clause (if used). Specify: (i) earliest exercise date, (ii) notice period and form, (iii) any penalty or forfeiture of deposit, and (iv) what happens to obligations incurred before the break date.

Stamp duty: rates, timelines, and procedure

The stamp duty payable on a Hong Kong tenancy agreement depends on the term and the annual rent. Under Cap. 117 and the current IRD schedule (Head 1 of the First Schedule), the rates are:

• Term not exceeding one year: 0.25% of the total rent payable over the term
• Term over one year but not exceeding three years: 0.5% of the average annual rent
• Term over three years: 1% of the average annual rent

Where a premium (key money or goodwill) is paid in addition to rent, stamp duty is also payable on that amount at the same rates applicable to the corresponding term.

The stamping deadline is 30 days from the date of the agreement. Late stamping attracts escalating penalties under Cap. 117: two times the duty if stamped within one month after the deadline, four times the duty between one and two months late, and ten times the duty if more than two months late. These penalties accumulate regardless of fault.

Stamping is done online through the IRD's e-Stamping Portal. The landlord is primarily liable for the duty, but the parties may agree to split the cost. The stamped instrument receives an endorsement and a unique stamp duty certificate number, which should be kept with the original agreement.

If the tenancy is subsequently varied — for example, the parties agree to extend the term or increase the rent — a supplemental agreement must be executed and stamped separately. The duty on a variation is calculated on the additional rent or premium created by the variation.

Execution and witnessing

Hong Kong does not require a tenancy agreement to be executed as a deed unless it falls outside the ordinary legal categories — most residential tenancies do not. Two original counterparts signed by both parties are standard practice. Each party retains one original. Witnessing is not a legal requirement for a simple tenancy agreement, but having witnesses sign does make it harder for either party to deny execution later.

After execution: registration with the Land Registry

Stamping with the IRD is mandatory. Registration with the Land Registry is separate and optional for short-term leases, but advisable. Under the Land Registration Ordinance (Cap. 128), a lease for more than three years must be registered within one month of execution to be effective against subsequent purchasers. Short-term leases (three years or less) bind future purchasers without registration, but registration provides a public record and can prevent disputes if the property is sold during the tenancy.

Using a ready-made template

Getting the structure right from the start avoids the most common drafting errors — missing deposit terms, unenforceable break clauses, and incomplete party details that complicate stamping. The residential tenancy agreement for Hong Kong on forms-legal.com follows the Cap. 7 framework and produces a clean, printable document that can be taken straight to the IRD e-Stamping Portal. Landlords and tenants can fill in the specific details online and download the result immediately.

Common errors that create real problems

Undating the agreement. Leaving the execution date blank to defer stamp duty is a common mistake. The IRD calculates penalty interest from the actual date of execution, not the date the parties eventually choose to disclose.

Misidentifying the premises. Omitting the floor and flat number, or using an informal address, can create disputes about which property is leased, particularly in subdivided or multiple-unit buildings.

Ignoring the Part IVA regime. If the premises qualify as a subdivided unit under Cap. 7, the landlord must provide a statutory tenancy notice, cannot charge more than two months' deposit, and must comply with minimum standards for water, lighting, and cooking facilities. Failure to comply with the statutory notice requirement is a criminal offence under Cap. 7.

Vague reinstatement obligations. "Restore to original condition" without a photographic inventory attached means very little in a dispute. Attach a dated inventory as a schedule to the agreement at the outset.

Failing to stamp a variation. Parties who agree to extend a term informally — through a WhatsApp exchange or letter — often discover later that the variation is itself a stampable instrument. Get every variation reduced to a signed written document and stamp it within 30 days.

A well-drafted, stamped tenancy agreement protects both parties equally. The cost of getting it right at the start — in time, duty, and proper legal language — is negligible compared to the cost of a tenancy dispute before the Lands Tribunal.