'Rent Control Not Protecting Tenants As It Should'

A group of subdivided flat tenants said on Tuesday that the government’s new rent control policy has failed to protect them, as authorities are not completely clear about the provisions of the legislation and refuse to act as a mediator when landlords and tenants are locked in disputes.

 

The rent control law for subdivided flats, which came into effect on January 22 this year, puts a 10 percent cap on rent increases when a two-year contract ends and gives tenants priority to renew the lease for two more years. 

 

It also prohibits landlords from overcharging tenants for water and power.

 

But a woman surnamed Lau, who lives in a subdivided flat in Tsuen Wan, told a press conference that the Rating and Valuation Department refused to intervene when she complained her landlord may be overcharging her for utilities.

 

“I asked the staff if they, as the law enforcement agency, could call my landlord to explain [the law] and mediate… but they said they wouldn’t contact the landlord directly. I felt helpless,” she said.

 

Ying, another subdivided flat tenant, said staff from the department gave different answers when she enquired about the effective date of the policy.

 

While some officers told her the new law applies to all tenancies that start on or after January 22, others said contracts signed before the date wouldn’t be protected by the regulation even if the tenancy period starts after January 22.

 

Kenny Ng, a social worker from an alliance of subdivided flat tenants, said the department needs to step up training for staff.

 

“Staff… have different understandings of the law and give different answers to the residents who are seeking their help or opinion, so we expect the government to provide professional training,” he said.

 

“And also they should provide some more information and do more promotion of the law for the public, especially for the landlords.”

In response, the Rating and Valuation Department said it had set up a new section consisting of 50 staff, responsible for the implementation of the

legislation.

It said the team’s work including promoting public awareness of the new regulatory regime; publicising and explaining the contents of the provisions; handling enquiries; providing free advisory and mediatory services to landlords and tenants on tenancy matters; and taking enforcement action as appropriate.

RECENT NEWS

SBI Holdings To Acquire Bitbank In US$289M Crypto Expansion

SBI Holdings has agreed to acquire Japanese crypto exchange Bitbank in a deal valued at approximately US$289 million, w... Read more

4 Ways Hong Kong Banks Fight Financial Crime Using AI, According To HKMA

The Hong Kong Monetary Authority (HKMA) wants banks to use AI in financial crime as a way to counter cyberattacks and s... Read more

Ripple Launches RLUSD Stablecoin In Japan Through SBI Group

Ripple has launched its US dollar-denominated stablecoin, Ripple USD, in the Japanese market. The expansion follows reg... Read more

SBI And Startale Launch Trust Bank-Backed Yen Stablecoin JPYSC In Japan

SBI Group has introduced its trust based stablecoin JPYSC in partnership with Singapore-based fintech company Startale ... Read more

Visa Study: Digital Wallets Lead Greater Bay Area Payment Preferences

Visa has released its latest Consumer Payment Attitudes Study, highlighting how payment seamlessness is linked to a shi... Read more

European And South Korean Banks Form Project Pangea For FX Settlement

Chainlink, South Korean infrastructure provider FairSquareLab, the Unified Korea Alliance (UniKA), and European stablec... Read more