2025-06-05 28Hse Editor
Renting out a property can be a challenging experience, especially when faced with tenants who fail to pay rent or intentionally damage the property. If this happens, landlords have the legal right to recover unpaid rent and repossess the property. While this process may seem complex, here’s how to proceed.
It is important to understand that recovering unpaid rent and repossessing a property are two separate legal processes. Applying for rent recovery does not automatically grant the right to repossess the property. Landlords can choose to apply for both simultaneously or pursue only one, depending on their needs.
Landlords can take legal action if a tenant fails to pay rent within 15 days of the due date. This gives them the right to terminate the lease and begin legal proceedings for unpaid rent recovery and repossession. However, if it is the tenant's first instance of non-payment, they will be given a grace period. If the tenant pays all outstanding rent and covers the landlord's legal fees before repossession occurs, they can continue to occupy the property.
To recover unpaid rent, landlords must provide a stamped formal tenancy agreement, a copy of Form CR109, and evidence of attempts to recover rent, such as WhatsApp messages, text messages, or written notices. Depending on the amount of rent owed, landlords may file a claim at the appropriate tribunal or court. Claims up to HK$75,000 are handled by the Small Claims Tribunal, those exceeding HK$75,000 but not more than HK$3 million are filed with the District Court, and claims over HK$3 million are handled by the High Court.
The repossession process involves three main steps. First, the landlord must apply to the Lands Tribunal by submitting a completed Notice of Application, Form 22 (Notice of application under the Landlord and Tenant (Consolidation) Ordinance, and copies of the stamped tenancy agreement.
A copy of the notice must also be delivered to the tenant and posted at the entrance of the unit for three consecutive days. After this, the landlord must file a Certificate of Service (Form 30) with the Lands Tribunal. The tenant has seven days to respond or file a defence.
If the tenant does not respond within seven days, the judgment can be issued within two to three days. If the tenant raises an objection, a hearing will be arranged, which typically takes at least two weeks. Once the landlord obtains the judgment, they can apply for a Writ of Possession. A bailiff will then execute the court order to repossess the property. However, the timeline for this step depends on the bailiff's availability.
Once the property is successfully repossessed, landlords must not dispose of any belongings left behind by the tenant without proper authorisation. These belongings legally remain the property of the tenant. The landlord must apply for a Warrant of Seizure and Sale to allow the bailiff to sell the items and use the proceeds to offset the unpaid rent.
By following these legal procedures, landlords can ensure the recovery of their property while protecting their rights and avoiding unnecessary conflicts with tenants.
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