The following can only be a brief introduction of the legal subject concerned. Before you take any action which may have legal consequence, you should first seek advice from your own lawyer or make an appointment at any District Office to see a volunteer lawyer of the Free Legal Advice Scheme.




(203) BUSINESS PREMISES

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In the Landlord and Tenant (Consolidation) Ordinance, "business premises" are defined as premises which are not domestic premises, that is to say premises which are not used wholly or primarily for human habitation. Quarters provided to the caretaker or watchman of a building, or an office attendant or the rooms occupied by guests of a hotel or boarding house are not regarded as domestic premises. If you use a shop primarily for selling goods and you also use a small part of the shop to live in, the premises are still business premises and the tenancy a business tenancy.

On the other hand, if you use your home to run a business it does not necessarily mean that the premises have become business premises, even if the business is quite substantial. It depends on factors such as the floor area used by the business, the number of non-resident employees and the terms of the lease.

In cases of doubt, the Department of Rating and Valuation will, at the request of either the landlord or the tenant, send an officer to inspect the premises and issue a certificate stating what he considers the primary use. A small fee is charged for this.

There is no protection for the business tenant against increase in rent. The landlord can increase the rent as much as he likes upon the end of one term, provided, of course, the tenant wishes to retain possession of the premises and agrees to pay the increase.

Since 2004 there has been no statutory requirement that the landlord serve notice of termination of the tenancy upon the tenant, so a fixed-term letting will expire on the last day of the term without any need for the landlord to give notice (unless that is provided for in the agreement, which is unusual). In the case of a periodic tenancy, such as a monthly letting, either party must give notice to quit if the tenancy is to end. The period of notice is one full period expiring on the last day of the period. So if a monthly tenancy began on the 15th day of a particular month, the notice must expire on the 14th day of a month and at least one full month after the notice was given.

If a tenant has sub-let the premises to sub-tenants, the sub-tenancies will terminate if the landlord has served the notice in English with a Chinese copy upon the main door or entrance of the premises on 3 successive days.

Date of amendment: 22nd February 2013