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(204) TENANTS OF RESIDENTIAL PREMISES

Voice

Statutory security of tenure for tenants and sub-tenants of residential premises was abolished with effect from 9th July 2004. Until that date such tenants and sub-tenants were protected by Part IV of the Landlord & Tenant (Consolidation) Ordinance. This part applied to all domestic tenancies, regardless of when they began, the age of the building concerned or the rateable value of the premises.

Tenants and sub-tenants of residential premises have no security of tenure beyond the date of termination of their tenancy agreement or lease, unless the tenancy was made before 9th July 2004. This means that in the case of a fixed-term tenancy, the tenant has no right to remain after the expiry of the tenancy. In the case of a periodic tenancy, such as a tenancy from month-to-month, the tenant has no right to remain after the landlord has given a valid notice to quit to the tenant and the period stipulated in that notice has expired.

Where the tenancy is for a fixed term, the landlord is not obliged to give any notice to quit. Where the tenancy is periodic, the landlord must give notice to quit in writing: the period of notice is generally one full period of the letting. So, for example in the case of a monthly letting, at least one full month’s notice expiring on the last day of the month of the letting should be given.

A party to a residential tenancy which was in existence on 9th July 2004 who wishes to end it must give to the other party what is called a transitional termination notice. This is a written notice which states that the tenancy is to be terminated on a certain date. No particular form is stipulated by the legislation although a suggested form is available at District Offices.

A transitional termination notice must be served by the landlord on the tenant at least 12 months before it is to take effect. If the notice is given by the tenant, it must be served not less than one month before it is to take effect. This means that security of tenure will continue in respect of residential tenancies which were in existence on 9th July 2004 for a limited period.

There is however an exception where the landlord requires the premises for the use of himself or members of his close family. In that event the landlord of a continuing tenancy can apply at any time for a possession order from the Lands Tribunal although of course he has to prove that he does really need the premises.

A transitional termination notice is also not required where the parties have agreed upon a different period of notice or have agreed to alter their existing agreement. Nor does it apply where the tenant transfers the tenancy to a new tenant.

In addition, irrespective of when it was made a tenancy may be ended by notice during its term if the agreement contains a provision permitting either party to do so. Such a provision is called a "break clause" or a "early termination clause". To exercise this clause, the party seeking to terminate the tenancy must follow any conditions stipulated in the clause, such as the period of notice, strictly.

Date of amendment: 22nd February 2013