Debunking 15 Myths About the Hong Kong Rental Market

1. Myth: Renting is Just Throwing Money Away

Truth: Although buying property is considered an investment, in Hong Kong's volatile market, renting has its advantages. For those not yet ready to buy or waiting for better market conditions, renting offers flexibility. LetsGetHome provides a Buy vs. Rent calculator, helping you compare the costs and make an informed decision about whether renting or buying is more suitable for you.

2. Myth: Landlords Always Prefer Long-Term Leases

Truth: While some landlords prefer the stability of long-term leases, others are open to short-term rentals, especially if they plan to sell or move in soon. LetsGetHome offers a free, fair, and transparent rental platform where landlords can list properties without advertising fees and set their own lease terms. Tenants can contact landlords directly to negotiate short-term leases. If you prefer professional assistance, LetsGetHome agents can facilitate the process and charge a 25% commission of the first month's rent upon successful lease signing.

3. Myth: The Rent Price Listed is Non-Negotiable

Truth: In Hong Kong, rent prices are often negotiable. Depending on demand, property condition, and the landlord's urgency, tenants can secure discounts. Besides negotiating rent, it's also important to discuss rent-free periods, which can range from 3 days to 2 weeks. Ensure these terms are agreed upon and included in the lease agreement.

4. Myth: Landlords Are Responsible for All Repairs

Truth: In Hong Kong, landlords generally handle most repairs, but tenants may be liable for damages they cause. According to Hong Kong law, landlords must cover structural repairs, including walls, ceilings, floors, and ensure all facilities (e.g., water, electricity, drainage) function properly.

5. Myth: You Don't Need an Agent to Rent a Property in Hong Kong

Truth: Experienced agents can be very helpful in Hong Kong's complex rental market. They understand market trends and know how to negotiate. Agents can assist with land registry checks to verify property ownership, ensuring a secure rental process and avoiding future disputes.

6. Myth: Security Deposits Are Non-Refundable

Truth: If tenants adhere to the lease terms, security deposits are refundable. Typically, deposits are returned within a specified period after lease termination, as outlined in the lease agreement. For added security, the tenant and landlord should sign a surrender agreement, and provide a receipt once the deposit is refunded.

7. Myth: Landlords Can Enter the Property Anytime Without Notice

Truth: In Hong Kong, landlords must give prior notice before entering a tenant's property, except in emergencies. If a tenant fails to pay rent, landlords have the right to terminate the tenancy. However, Landlords must provide written notice within seven days after the rent due date, giving tenants at least 30 days to pay the outstanding rent, failing which the lease will be terminated. Without prior notice, landlords cannot forcibly evict tenants.

8. Myth: Always List Your Flat with a Neighbourhood Expert

Truth: While local knowledge is beneficial, professionalism and efficiency are more important. Some tenants report agents showing only high-rent properties or inflating rent prices to benefit landlords, failing to represent tenant interests. Similarly, landlords complain about agents charging a full month's rent for minimal services. Hong Kong's real estate market needs a transparent, fair, and affordable rental platform, which is the mission of LetsGetHome.

9. Myth: Listings Require Removing All Decorations and Plants

Truth: A moderate amount of decoration and indoor plants can enhance a home's atmosphere. Indoor plants and decor can purify the air and improve living quality. When arranging plants, consider feng shui advantages and opt for easy-to-maintain greenery.

10. Myth: Always Redecorate in Neutral Tones

Truth: Neutral colors appeal to most people, but vibrant colors can highlight a property's uniqueness. If your home has bold colors, balance it with neutral furniture or plants. Before renovating, try using free interior design apps to visualize changes, ensuring the new look fits your taste.

11. Myth: Smaller Flats Are Always Cheaper to Rent

Truth: While size is a factor, location is more crucial. In high-demand areas like Hung Hom, Sha Tin, and Sai Ying Pun, rents are high even for small homes. If budget is a concern, consider subletting and partitioned rooms. However, always ensure the property is eligible for subletting to avoid disputes.

12. Myth: Older Buildings Mean Lower Rent

Truth: Some older buildings such as Tenement Houses in Hong Kong, especially in well-established neighborhoods, offer spacious layouts and unique architectural designs. Their charm and the rarity of such units in a densely populated city like Hong Kong can command premium rents.

13. Myth: Properties Near Schools Are Always Expensive

Truth: Proximity to schools often raises rent due to high demand. Many parents seek homes near schools for convenience. LetsGetHome's Hong Kong school rental map helps you find properties near schools, from kindergartens to secondary schools, including government, subsidized, and private schools.

14. Myth: "Village Houses" Are a Less Desirable Option

Truth: Village houses, especially in the New Territories, offer unique spaces and outdoor experiences. With more people working remotely, village houses near Tai Mo Shan are becoming popular. Unlike public roads in urban areas, the access routes to village houses may belong to private land, and tenants may need to pay tolls. Additionally, tenants especially should consider security, utilities, and internet coverages when renting a village house.

15. Myth: Foreigners Mainly Rent, While Locals Prefer Buying

On February 28, 2024, the Hong Kong Financial Budget abolished the additional property taxes, including SSD, BSD, and NRSD. This means foreign buyers now face the same tax rates as locals, ranging from $100 to 4.25% of the property price.

Thus, both buying and renting are viable options for non-locals. For locals, the main difference lies in the broader range of buying options, such as 90% mortgages for first-time buyers and schemes like Green Form Subsidized Home Ownership. Moreover, public housing, transitional housing, and youth hostels help ease housing pressures for those in need.

Master Hong Kong Rentals with LetsGetHome

Navigating the Hong Kong rental market can be riddled with misconceptions, but armed with the truths outlined above, both renters and landlords can make informed decisions. Whether you're considering renting a property, negotiating a lease, or simply exploring the latest Hong Kong real estate news. For a seamless rental experience and expert insights into the Hong Kong property market, sign up LetsGetHome now. Let's make your rental journey straightforward and hassle-free!