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Swiss Chinese Law Association — Geneva

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Legal Observatory / Everyday Rights

Law and Society China Hong Kong SAR Court judgment

Hong Kong Courts Convict 48 Subdivided Unit Landlords for Statutory Tenancy Violations

Forty-eight landlords of subdivided units were convicted at Eastern Magistrates' Courts for violating Part IVA of the Landlord and Tenant (Consolidation) Ordinance and fined a total of $152,830.

What Changed

  • Eastern Magistrates' Courts convicted 48 subdivided unit landlords on four dates in October 2026, imposing total fines of $152,830.
  • Offences included failing to file Form AR2 within 60 days, failing to produce utility bill copies/written accounts, failing to provide rent receipts, and seeking unlawful payments.
  • The Rating and Valuation Department has prosecuted 1,628 cases to date, securing 1,444 convictions against 1,263 landlords totaling over $4 million in fines.

Landlords and tenants of subdivided units (SDUs) in Hong Kong SAR are directly affected by statutory enforcement of Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7). On October 2, October 9, October 16, and October 30, 2026, forty-eight SDU landlords pleaded guilty at the Eastern Magistrates' Courts to contravening statutory requirements under the Ordinance, incurring individual fines ranging from $800 to $19,200, with total fines amounting to $152,830.

The offences committed by the 48 landlords included failing to submit a Notice of Tenancy (Form AR2) to the Commissioner of Rating and Valuation within 60 days after the commencement of a regulated tenancy; failing to produce copies of bills and provide a written account when demanding reimbursement for apportioned water or electricity charges; failing to provide tenants with rent receipts; and requesting payments outside those permitted by the Ordinance, such as demanding rent for a second-term tenancy that exceeded statutory limits.

The prosecutions followed comprehensive investigations and evidence collection by the Rating and Valuation Department (RVD). Under Part IVA of the Ordinance, regulated tenancy cycles comprise two consecutive two-year terms (a first-term and a second-term tenancy). Tenants enjoy a statutory four-year security of tenure. Landlords are strictly prohibited from engaging in acts intended to interfere with a tenant's peace or comfort to induce them to give up occupation, or charging second-term rent above permitted maximums.

To enforce compliance, the RVD proactively requires landlords to provide tenancy documents and reference information for verification. Refusing to comply or neglecting an RVD request without a reasonable excuse constitutes an offence punishable by a maximum level 3 fine of $10,000 and up to three months' imprisonment.

Since the Ordinance came into force, the RVD has prosecuted 1,628 cases. The courts have dealt with 1,444 cases—all resulting in convictions across 1,263 SDU landlords, yielding cumulative fines of $4,034,540—while 184 cases remain pending hearing. Members of the public can report suspected contraventions to the RVD by phone, email, fax, post, in person, or via Form AR4.

Who May Be Affected

Landlords and tenants of regulated subdivided units in Hong Kong SAR.

Cross-Border Context

not applicable

What to check next

  • Rating and Valuation Department official guidance and online portal for second-term tenancies and Form AR4 reporting procedures.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

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