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Simple Commercial Rental Agreement for Hong Kong

Simple Commercial Rental Agreement Template for Hong Kong

A comprehensive legal document governed by Hong Kong law that establishes the terms and conditions for the rental of commercial property. This agreement outlines the fundamental rights and obligations of both landlord and tenant, including rent payment terms, property usage restrictions, maintenance responsibilities, and security deposit arrangements. It incorporates relevant provisions from Hong Kong's commercial property legislation, particularly the Landlord and Tenant (Consolidation) Ordinance, while maintaining simplicity and clarity in its structure and terms.

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What is a Simple Commercial Rental Agreement?

The Simple Commercial Rental Agreement is designed for use in Hong Kong's dynamic commercial property market, where businesses frequently require formal documentation of their lease arrangements. This document serves as a foundational agreement between landlords and commercial tenants, incorporating essential provisions required under Hong Kong law while maintaining accessibility and clarity. It is particularly suitable for straightforward commercial letting arrangements where parties seek to document their rental relationship without overly complex terms. The agreement includes standard provisions for rent, security deposits, maintenance obligations, and permitted use of the premises, while ensuring compliance with local regulations and market practices. This template is structured to accommodate various commercial purposes while remaining sufficiently flexible to address specific requirements of different business sectors operating in Hong Kong.

What sections should be included in a Simple Commercial Rental Agreement?

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

2. Background: Brief context of the agreement and property letting

3. Definitions: Key terms used throughout the agreement

4. Demise: Specific details of the property being leased and any included facilities or equipment

5. Term and Possession: Duration of the lease, commencement date, and possession details

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences

7. Security Deposit: Amount, payment terms, conditions for return, and permitted deductions

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

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

10. Maintenance and Repairs: Responsibilities of landlord and tenant for maintenance, repairs, and alterations

11. Insurance: Required insurance coverage for both parties

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

13. Landlord's Covenants: Obligations and warranties of the landlord

14. Tenant's Covenants: Obligations and warranties of the tenant

15. Termination: Conditions for early termination and consequences

16. Notices: Process for serving notices between parties

17. Governing Law: Specification of Hong Kong law as governing law and jurisdiction

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

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

2. Rent Review: Mechanism for reviewing and adjusting rent during the term, if applicable

3. Option to Renew: Terms for lease renewal at the end of the initial term

4. Fitting Out Works: Provisions for initial renovation or fitting out of the premises

5. Car Parking: Terms relating to car parking facilities if included

6. Building Management: Specific provisions relating to building management rules and regulations

7. Force Majeure: Provisions for unforeseen circumstances preventing performance of obligations

8. Guarantee: Where a guarantor is required for the tenant's obligations

What schedules should be included in a Simple Commercial Rental Agreement?

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

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Rent Payment Schedule: Detailed breakdown of rent payments and due dates

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

5. Schedule 5 - Condition Report: Initial condition of the premises at commencement of lease

6. Schedule 6 - Permitted Alterations: Specific alterations permitted to be carried out by the tenant

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

8. Appendix B - Forms and Notices: Standard forms for various notices required under the lease

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

Cost

Free to use
Relevant legal definitions


































Clauses

































Relevant Industries

Real Estate

Retail

Food and Beverage

Professional Services

Financial Services

Technology

Healthcare

Education

Manufacturing

Logistics

Entertainment

Hospitality

Construction

Legal Services

Consulting

Relevant Teams

Legal

Operations

Finance

Facilities Management

Real Estate

Administration

Procurement

Risk and Compliance

Property Management

Business Development

Relevant Roles

Property Manager

Facilities Manager

Real Estate Manager

Business Owner

Chief Executive Officer

Chief Financial Officer

Operations Manager

Legal Counsel

Company Secretary

Commercial Director

Procurement Manager

Asset Manager

Leasing Manager

Real Estate Agent

Property Administrator

Risk Manager

Compliance Officer

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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