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Commercial Rental Agreement for Hong Kong

Commercial Rental Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions for the rental of commercial property. This document outlines the rights and obligations of both landlord and tenant, including rent payments, maintenance responsibilities, permitted use of the premises, and other essential terms. It incorporates specific provisions required under Hong Kong's commercial property laws while reflecting the territory's common law principles, particularly since the deregulation of commercial tenancies in 2004. The agreement typically includes detailed provisions for security deposits, rent reviews, building management, and compliance with local regulations.

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What is a Commercial Rental Agreement?

The Commercial Rental Agreement is a fundamental document used in Hong Kong's commercial property market for establishing legally binding lease arrangements between landlords and commercial tenants. This agreement is particularly important in Hong Kong's dynamic business environment, where commercial real estate transactions are governed by common law principles following the repeal of statutory controls on commercial tenancies. The document covers essential aspects such as rent determination, tenure, maintenance obligations, and permitted use of the premises, while incorporating specific requirements of Hong Kong's property laws and regulations. It serves as a crucial tool for protecting both landlord and tenant interests in commercial property transactions, providing clarity on rights, obligations, and remedies available under Hong Kong law.

What sections should be included in a Commercial Rental Agreement?

1. Parties: Identification of the landlord and tenant, including full legal names, registration numbers for companies, and registered addresses

2. Background: Context of the agreement and brief description of the premises and intended use

3. Definitions: Definitions of key terms used throughout the agreement

4. Demise: Formal grant of the lease, specifying the premises being leased

5. Term: Duration of the lease, including start and end dates

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and rent review provisions

7. Deposit: Security deposit amount, payment terms, and conditions for return

8. Rates, Taxes and Outgoings: Responsibility for government rates, taxes, management fees, and utilities

9. Use of Premises: Permitted use of the premises and any restrictions

10. Maintenance and Repairs: Responsibilities of both parties regarding maintenance, repairs, and decoration

11. Alterations and Additions: Rules regarding modifications to the premises

12. Insurance: Insurance requirements for both parties

13. Assignment and Subletting: Restrictions and conditions for transferring or subletting the premises

14. Landlord's Covenants: Obligations and promises of the landlord

15. Tenant's Covenants: Obligations and promises of the tenant

16. Termination: Circumstances and procedures for early termination

17. Default and Remedies: Consequences of breach and available remedies

18. Governing Law: Specification of Hong Kong law as governing law

19. Execution: Signature blocks and execution formalities

What sections are optional to include in a Commercial Rental Agreement?

1. Break Clause: Optional provision allowing either party to terminate the lease early under specified conditions

2. Rent Free Period: Terms of any rent-free period offered as an incentive

3. Option to Renew: Terms for extending the lease beyond the initial term

4. Reinstatement: Requirements for returning the premises to original condition, if required

5. Property Management: Specific requirements relating to building management and regulations

6. Air Conditioning: Specific provisions for central air conditioning services and charges

7. Signage Rights: Terms regarding external signage and advertising rights

8. Car Parking: Provisions for car parking spaces if included

9. Guarantee: Terms of any personal or corporate guarantee required

10. Force Majeure: Provisions for unforeseen circumstances affecting the premises or its use

What schedules should be included in a Commercial Rental Agreement?

1. Schedule 1 - Property Description: Detailed description of the premises including floor plan and measurements

2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments, including any stepped increases

3. Schedule 3 - Condition Report: Detailed description of the premises condition at commencement

4. Schedule 4 - Building Rules and Regulations: Specific rules and regulations of the building

5. Schedule 5 - Fitting Out Guidelines: Specifications and requirements for any fitting out works

6. Schedule 6 - Landlord's Provisions: List of fixtures, fittings and provisions included in the lease

7. Appendix A - Plans and Drawings: Floor plans, location plans and other relevant drawings

8. Appendix B - Handover Condition Photos: Photographic evidence of premises condition at handover

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Ƶ

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions









































Clauses





































Relevant Industries

Real Estate

Retail

Food & Beverage

Professional Services

Financial Services

Technology

Healthcare

Education

Manufacturing

Logistics

Hospitality

Entertainment

Media

Consulting

Industrial

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Procurement

Risk & Compliance

Property Management

Asset Management

Business Development

Administration

Relevant Roles

Property Manager

Facilities Manager

Real Estate Director

Chief Financial Officer

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Company Secretary

Procurement Manager

Asset Manager

Leasing Manager

Property Investment Manager

Risk Manager

Compliance Officer

Finance Manager

Managing Director

CEO

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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