Holiday Rental Agreement (Hong Kong)

A Holiday Rental Agreement in Hong Kong records the terms on which a landlord lets premises to a tenant, including rent and notice periods.

Hong Kong's short-term rental market operates in a regulated legal environment shaped by three overlapping legal frameworks. First, the Deed of Mutual Covenant (DMC) governing most multi-storey residential buildings frequently restricts use to 'domestic purposes only' and prohibits short-term subletting without the owners' corporation's consent. Owners who breach the DMC risk enforcement action by the building manager or owners' corporation under the Building Management Ordinance (Cap. 344). Second, Cap. 349, administered by the Office of the Licensing Authority under the Home and Youth Affairs Bureau, classifies premises used to provide lodging for reward for fewer than 28 consecutive days as a 'guesthouse' requiring a licence. Operating an unlicensed guesthouse is a criminal offence carrying a fine up to HK$200,000 and two years' imprisonment on first conviction. Third, the Government Lease for most residential lots restricts use to 'domestic purposes', and commercial holiday rental operations may breach those conditions.

For holiday arrangements that comply with these requirements — including stays of 28 days or longer, or premises lawfully licensed under Cap. 349 — a written Holiday Rental Agreement provides the legal foundation for the arrangement. The document records the agreed rental fee in Hong Kong dollars (HKD), the check-in and check-out dates, the security deposit amount, house rules, and liability limitations under the Occupiers Liability Ordinance (Cap. 314).

Property Tax under Section 5 of the Inland Revenue Ordinance (Cap. 112) applies to rental income at 15% of the assessable value (net of a statutory 20% allowance for repairs and outgoings). Landlords who operate holiday rentals as a business may be subject to Profits Tax under Section 14 of Cap. 112 at 15% for individuals or 16.5% for corporations on assessable profits, rather than Property Tax. The Inland Revenue Department requires declaration of all rental income in the annual tax return. Section 51 of Cap. 112 requires landlords to file a Property Tax return with the Inland Revenue Department when requested.

Personal Data (Privacy) Ordinance (Cap. 486) obligations apply when a host collects guests' HKID numbers, passport details, or payment information. Data must be collected only for the rental purpose, stored securely, and retained only as long as necessary. The Noise Control Ordinance (Cap. 400) and Smoking (Public Health) Ordinance (Cap. 371) restrict guest conduct in residential premises.

Forms-legal.com provides this Holiday Rental Agreement template for use where the rental arrangement is lawful, compliant with the building's DMC, and consistent with the Government Lease conditions. Property owners are advised to verify compliance with Cap. 349, their DMC, and the Government Lease before advertising or entering into short-term rental arrangements in Hong Kong.

A Holiday Rental Agreement in Hong Kong is required whenever a property owner or authorised licensor grants a guest the right to occupy furnished residential premises for a short-term holiday, vacation, or leisure stay.

Property owners renting furnished apartments for periods of 28 days or longer should use this agreement to document the rental fee, deposit, check-in and check-out arrangements, and house rules. Stays of 28 days or longer fall outside the 'fewer than 28 days' threshold in Section 2 of Cap. 349, reducing the risk of classification as an unlicensed guesthouse and the associated criminal penalties under Section 8 of Cap. 349.

Owners of premises lawfully licensed as a guesthouse or hotel under Cap. 349 require a written Holiday Rental Agreement for each guest to record the agreed terms, protect the licence holder's rights regarding damage and unpaid charges, and provide evidence of compliance with Cap. 349 guest register requirements administered by the Office of the Licensing Authority under the Home and Youth Affairs Bureau.

Property managers and letting agents handling short-term rentals on behalf of owners in Hong Kong — including those operating in popular residential districts such as Mid-Levels, Happy Valley, Sai Kung, Discovery Bay, and Repulse Bay — use this agreement to standardise the terms on which guests are admitted and to allocate liability between the owner, manager, and guest.

Families and individuals providing short-term accommodation to visiting relatives or friends on a cost-recovery basis should use this agreement to document the arrangement, even where no profit is intended, to clarify the terms of occupation and avoid disputes about damage, cleaning obligations, and departure dates. Under Section 14 of the Building Management Ordinance (Cap. 344), the owners' corporation may have authority to restrict unauthorised short-term occupancy arrangements in the building.

Serviced apartment operators in Hong Kong whose premises are exempt from Cap. 349 or who hold the appropriate licence should use this agreement as the standard form for each guest's stay, incorporating house rules specific to the building's DMC, fire safety requirements under the Fire Services Ordinance (Cap. 95), and the building management's regulations.

Corporate relocation arrangements where an employer provides short-term furnished accommodation to a relocating employee benefit from a Holiday Rental Agreement that documents the relationship between the employer, employee, and the property owner or manager, and confirms the tax treatment of the accommodation as a benefit-in-kind under the Inland Revenue Ordinance (Cap. 112).

A Holiday Rental Agreement in Hong Kong must address the following key elements to protect both the licensor and the guest.

Parties and property identification: The full legal name and contact details of the licensor (owner or authorised manager) and the guest. The property address, floor, unit number, and Land Registry lot reference (for properties with a formal title record). The licensor should confirm their authority to grant the licence — whether as registered owner, mortgagee in possession, or authorised agent.

Licence period: The precise check-in date, check-in time, check-out date, and check-out time. Hong Kong holiday rentals typically specify check-in from 3:00 pm and check-out by 12:00 noon, consistent with hotel industry practice. Early check-in and late check-out arrangements should be documented with any applicable additional charges.

Rental fee and payment terms: The total rental fee in HKD, the rate per night or per week, payment due dates (typically in advance), and the accepted payment methods. Hong Kong has no GST or VAT, simplifying rental fee calculations compared to other jurisdictions.

Security deposit: The deposit amount (typically one to two nights' fee or HK$2,000–HK$5,000), the method of payment, the conditions under which deductions may be made (damage beyond fair wear and tear, cleaning costs, unpaid charges), and the timeline for refund after check-out (commonly 3–7 days). A check-in and check-out inventory should accompany the agreement.

House rules: Rules governing noise (consistent with the Noise Control Ordinance, Cap. 400), smoking (the Smoking (Public Health) Ordinance, Cap. 371 prohibits smoking in common areas and many indoor premises), pets (frequently prohibited by DMC), maximum occupancy, visitor policy, use of building amenities (pool, gym, car parking), and waste disposal under Hong Kong's mandatory waste separation requirements.

Utilities and services: Whether electricity, water, broadband internet, air conditioning, and laundry are included in the rental fee or charged separately. Hong Kong utility costs (electricity from CLP Power or HK Electric, water from the Water Supplies Department) should be clearly allocated.

Liability and insurance: The licensor's duty of care under the Occupiers Liability Ordinance (Cap. 314) and any limitations on liability for theft, loss, or damage to the guest's belongings. The guest's liability for damage to the premises beyond fair wear and tear. A recommendation that the guest maintain travel insurance or personal effects insurance for the duration of the stay.

Personal data: Confirmation that guest personal data (HKID, passport, payment information) collected under the agreement will be used only for the rental purpose, in compliance with the Personal Data (Privacy) Ordinance (Cap. 486), and will not be shared with third parties without consent.

Termination and early departure: The licensor's right to terminate the licence and require the guest to vacate if the guest breaches the house rules, causes damage, or creates a nuisance. The guest's rights upon early departure and the licensor's obligation (if any) to refund a pro-rated portion of prepaid rent.

Cap. 349 compliance: Where the licensor rents out a unit regularly to short-stay guests — particularly stays of fewer than 28 consecutive days — the activity may constitute operating a guesthouse requiring a licence under the Hotel and Guesthouse Accommodation Ordinance (Cap. 349). The Hong Kong Office of the Licensing Authority (OLA) under the Home and Youth Affairs Bureau enforces Cap. 349 and has prosecuted unlicensed short-term rental operators with fines and criminal conviction. Owners should seek legal advice on whether their specific rental pattern triggers the Cap. 349 licensing requirement before entering into a Holiday Rental Agreement.

Governing law: Laws of the Hong Kong Special Administrative Region, with disputes referred to the Small Claims Tribunal of Hong Kong (claims up to HK$75,000) or the District Court of Hong Kong. The Hong Kong Rating and Valuation Department assesses the rateable value of rental properties; rental income is subject to Property Tax under the Inland Revenue Ordinance (Cap. 112) unless the owner elects for Profits Tax assessment. The forms-legal.com Holiday Rental Agreement (Hong Kong) template covers the mandatory elements under Landlord and Tenant (Consolidation) Ordinance (Cap. 7).