Furnished Apartment Tenancy Agreement (Hong Kong)

Furnished Apartment Tenancy Agreement in Hong Kong is a residential tenancy agreement governed by the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) and subject to stamp duty under the Stamp Duty Ordinance (Cap. 117) that combines the standard tenancy terms — rent, deposit, term, repair obligations, and termination rights — with a thorough inventory schedule documenting all furniture, appliances, and fittings provided by the landlord as part of the rental.

Furnished apartments are a dominant feature of the Hong Kong private residential rental market. The territory's high residential mobility, significant expatriate population, and culture of renting rather than owner-occupation make furnished or semi-furnished rentals the norm rather than the exception, particularly in urban districts such as Central, Wan Chai, Causeway Bay, Tsim Sha Tsui, Mong Kok, Quarry Bay, and Taikoo Shing. Landlords in these districts routinely provide furnishings ranging from basic (beds, wardrobes, dining table) to thorough (full kitchen appliance suite, home entertainment systems, air conditioning units in every room) to attract tenants who are relocating and cannot easily bring their own furnishings.

The furniture inventory is the critical distinguishing feature of a Furnished Apartment Tenancy Agreement. Without a detailed, signed inventory, disputes at the end of the tenancy about what items were provided, their original condition, and which party is responsible for damage or loss cannot be resolved fairly. The Lands Tribunal — which has jurisdiction over residential tenancy disputes in Hong Kong under Cap. 7 — regularly hears deposit disputes where the absence of a proper inventory leaves both parties unable to prove their claims.

The Landlord and Tenant (Consolidation) Ordinance (Cap. 7) governs the residential tenancy relationship in Hong Kong. Under Cap. 7, the tenant has obligations to keep the premises (including furnished items) in good repair and condition, ordinary wear and tear excepted. The landlord has obligations to carry out structural repairs and maintain the property in a reasonable state. The definition of 'ordinary wear and tear' — natural deterioration through normal use — versus damage caused by misuse or negligence is a recurring source of dispute that a detailed inventory and condition report helps resolve.

The Stamp Duty Ordinance (Cap. 117) requires that a tenancy agreement for a period not exceeding one year be stamped within 30 days of execution. The stamp duty payable depends on the annual rent — for residential tenancies with annual rent not exceeding HK$1 million, the rate is 0.25% of the annual rent. For agreements of duration exceeding one year, different stamp duty rates apply. Failure to stamp the agreement within 30 days incurs a penalty. The Inland Revenue Department's Stamp Office handles stamping of tenancy agreements in Hong Kong.

Management companies for the building in which the furnished apartment is located may impose house rules on the use of common areas, moving procedures for furniture, and restrictions on certain appliances or alterations. The tenancy agreement should incorporate by reference any applicable deed of mutual covenant (DMC) restrictions and building management company house rules that affect the tenant's use of the furnished premises.

Furnished Apartment Tenancy Agreement in Hong Kong is needed whenever a landlord lets a residential property with furniture, appliances, and fittings included in the rental, and the written agreement with a detailed inventory is essential for protecting both parties' interests throughout the tenancy and at the end.

Expatriate and corporate tenants are the primary market for furnished apartments in Hong Kong. Companies relocating employees to Hong Kong — particularly in finance, legal, technology, and trading sectors — frequently require accommodation on fully furnished terms for the duration of the assignment. Corporate tenancy agreements for furnished apartments typically include provisions on the employer's obligation to pay rent, the treatment of the agreement on early repatriation, and the company's liability for damage caused by the employee-tenant.

Short-term and medium-term tenants (typically 1 to 2-year tenancies) find furnished apartments particularly practical in Hong Kong's high-density urban environment. Relocating individuals who do not own furniture, or who have left furnishings in their home country, benefit from a furnished rental that allows immediate occupation without procurement costs. The tenancy agreement and inventory protect the tenant by documenting what was provided and its condition at the start.

Landlords of premium residential properties in districts such as The Peak, Mid-Levels, Repulse Bay, and Sai Kung invest significantly in high-quality furniture and appliances — custom-made furniture, branded kitchen appliances, high-thread-count bed linen, and premium home entertainment systems. For these landlords, a detailed inventory with photographic evidence is essential commercial protection. The inventory enables the landlord to claim specific deductions from the security deposit for damage to identified items.

Serviced apartment operators and individual landlords competing for corporate tenant business need Furnished Apartment Tenancy Agreements that clearly specify the management company's responsibilities for maintenance and replacement of furniture and appliances, so corporate tenants have clarity on service standards before signing.

Long-tenancy furnished apartments where the furniture ages and requires replacement present specific challenges that the agreement must address: which party is responsible for replacing an aging washing machine or refrigerator that fails through normal use (typically the landlord); how mid-tenancy replacement is initiated; and how any replacement items are added to the inventory. A well-drafted agreement prevents disputes about these routine management issues.

Co-living arrangements and flat-sharing in furnished properties — common among young professionals in Hong Kong — benefit from a clear tenancy agreement documenting the furnished items, each tenant's access to shared items, and each tenant's liability for damage to their specific room versus common area items.

Furnished Apartment Tenancy Agreement in Hong Kong should include all standard residential tenancy terms required under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) plus the following essential furnished-specific elements.

Parties and Property: Full legal names and HKID numbers (or passport numbers for non-residents) of landlord and tenant; full address including floor, unit number, building name, and district; lot number; and management company contact details for the building. For corporate tenancies, the tenant company's Hong Kong Companies Registry number.

Tenancy Term and Rent: Commencement and expiry dates; monthly rent in HKD; the day on which rent is payable each month; accepted payment methods (bank transfer to the landlord's Hong Kong bank account is standard); rent-free period (if any); and rent review provisions for tenancy renewals. No GST or VAT applies to residential rent in Hong Kong.

Security Deposit: The deposit amount — typically 2 to 3 months' rent for furnished apartments (higher than the 1 to 2 months common for unfurnished apartments to reflect the additional asset risk); the conditions for deduction from the deposit (damage beyond fair wear and tear to the premises and furnished items, unpaid rent, unpaid utilities); and the timeline for return of the deposit after the end of the tenancy (commonly within 30 days of vacant possession and satisfactory inventory check).

Furniture and Appliances Inventory Schedule: The critical element distinguishing this agreement from a standard tenancy. The inventory schedule should list every item provided by the landlord: item category (bedroom, living room, kitchen, bathroom, study); specific item description (brand, model where applicable); quantity; location within the apartment; and condition at the start of the tenancy (excellent, good, fair, with specific notes on existing defects or marks). The inventory must be signed by both parties at the start of the tenancy and annexed to the agreement as a schedule.

Condition Report and Photographic Record: A condition report noting the state of the apartment (walls, floors, ceilings, fixtures) and each furnished item at the start of the tenancy. Photographs should be taken of every room and every item with existing damage, dated and referenced to the inventory schedule. The photographs should be attached to or referenced in the tenancy agreement. This contemporaneous record is the primary evidence for resolving end-of-tenancy deposit disputes before the Lands Tribunal.

Maintenance and Repair Responsibilities: An allocation of maintenance responsibility — landlord responsible for structural repairs, building systems (plumbing, electrical wiring), and appliance repair or replacement due to fair wear and tear or mechanical failure through normal use; tenant responsible for day-to-day care, cleaning, and repair of damage caused by misuse, negligence, or accidental damage. The agreement should specify the procedure for reporting maintenance issues and the landlord's obligation to respond within a reasonable time.

Fair Wear and Tear Definition: A clear definition or description of what constitutes fair wear and tear versus damage for the purposes of deposit deductions. Fair wear and tear means normal deterioration through reasonable use — minor upholstery fading, small scuff marks, natural ageing of appliances. Stains, burns, breakages, and damage caused by pets or negligence are not fair wear and tear and can be the subject of deposit deductions or claims against the tenant.

Utilities and Services: Which utilities are included in the rent (if any — some furnished apartments include management fees, water, or broadband) and which are the tenant's direct responsibility. Air conditioning electricity consumption in Hong Kong can be significant, and the agreement should address whether this is included or metered separately.

Stamp Duty Compliance: A statement that the tenancy agreement will be stamped at the Stamp Office of the IRD under Cap. 117 within 30 days of execution, and which party (conventionally the landlord) bears the stamp duty cost. Both parties need a stamped copy of the agreement for their records.

End-of-Tenancy Procedure: The procedure for the end-of-tenancy inspection — joint inspection by landlord and tenant; comparison of apartment condition against the original condition report; comparison of furniture and appliances against the inventory schedule; and the timeline for issuing a deposit deduction schedule. Forms-legal.com provides a Furnished Apartment Tenancy Agreement template for Hong Kong with a detailed inventory schedule aligned with Cap. 7 requirements.

Statutory Cross-References: Section 6 of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) sets out the landlord's obligation not to harass tenants. Section 119V of Cap. 7 governs security of tenure for domestic tenants. Section 120AAB of Cap. 7, added by the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2021, introduces tenancy control measures for subdivided units. Section 4 of the Stamp Duty Ordinance (Cap. 117) requires stamping within 30 days of execution — Ad Valorem Stamp Duty applies on the rental value of furnished apartment tenancies. Section 8 of the Building Management Ordinance (Cap. 344) governs owners' corporation formation and deed of mutual covenant (DMC) obligations enforceable by the building management company. The Rating and Valuation Department administers property rates under the Rating Ordinance (Cap. 116), which remain the landlord's responsibility. The Land Registry records title under the Land Registration Ordinance (Cap. 128), which tenants' solicitors should search before executing a long tenancy. The Environmental Protection Department enforces the Water Pollution Control Ordinance (Cap. 358) regarding wastewater discharge from residential premises. The Food and Environmental Hygiene Department (FEHD) enforces pest control and hygiene standards in rented premises under the Public Health and Municipal Services Ordinance (Cap. 132).