GOVERNMENT RATES AND GOVERNMENT RENT
- A tax levied by the government on all occupiers of commercial and residential property. As a general rule, rates will be in the order of 5% of one year's rent, payable on a quarterly basis. Property owners are liable to pay government rent under their land leases and this cost is sometimes passed onto tenants.
- This tax will depend on the rent payable and length of lease term, and is determined by a schedule of charges fixed by and payable to the government. The following rates apply:
- 0.25% of the rent where the lease term is less than one year
- 0.50% of the average annual rent where the term is between one and three years.
- 1.00% of the average annual rent where the term is more than three years. The cost is usually shared equally between the landlord and the tenant.
Details please refer to Rating and Valuation Department.
- Each side normally bears its own legal costs.
- The tenancy agreement will contain provisions for insurance liabilities. Tenants will normally be required to provide additional cover for contents and public liability.
ADVANCE RENTAL PAYMENT
- Upon signing of a binding offer or tenancy agreement, a tenant is normally required to make an advance payment equivalent to one (1) month’s rent, service charges and government rates.
- Tenants are required to lodge a cash security deposit up to three (3) months’ rent, inclusive of service charge and government rates. The deposit is refundable at the end of the lease term and is non-interest bearing for the tenant.