Below is the clearest "Complete Guide to Renting Out HOS Flats"—explained in two scenarios: without paying the land premium and with the land premium paid.
Q1｜If I do not pay the land premium, can I rent out a Home Ownership Scheme (HOS) flat?
General situation: Cannot be rented out on the open market. Unsubsidized HOS flats are classified as "subsidized housing," and their usage is restricted; approval from the Director of Housing is required before renting them out.
However, there is an important exception:
✔ If You Want to "Compliantly Rent Out" Subsidized Sale Flats Without Premium Paid
You can check whether your estate is on the "Subsidized Sale Flats Without Premium Paid – Rental Scheme" list. If eligible and you have held the unit for 10 years or more, you can apply according to the following procedures:
- Apply to the Housing Society for an "Owner Certificate"
- Can only sign a contract with tenants holding both a "Tenant Certificate" and "Nomination Certificate"
- Must use the rental agreement format specified by the scheme
Subsidized sale units without premium paid are, in principle, for self-occupation only before the premium is paid; to "sell, rent out, or otherwise dispose of" them, the premium must be paid first, after which they can be operated in the open market. However, if you meet the conditions of the Housing Society's "Subsidized Sale Flats Without Premium Paid – Rental Scheme," you can rent out the entire unit or a bedroom in a compliant manner to eligible public rental housing applicants without paying the premium.
❌ Renting Without Approval = Violation
If the owner rents out the unit to general market tenants online or privately, and the unit has not been paid the premium and has no exemptions, it constitutes a violation of the Housing Ordinance, with a maximum penalty of fines and imprisonment.
Q2｜What is the "Unsubsidized Subsidized Sale Flats – Rental Scheme"?
This scheme is launched and managed by the Housing Authority and covers some Housing Authority and Housing Committee subsidized sale units.
✔ Eligible Persons
- Designated Hong Kong Housing Society and Hong Kong Housing Authority subsidized sale flats with unpaid premium
✔ Owner Conditions
- Must be the sole owner of the unit (including joint ownership)
- Hold unit ownership 10 years or more (some transfer cases can inherit the previous owner's period)
✔ Tenant Conditions
- Must be an eligible public housing applicant who has been on the waiting list for a certain number of years
- Need to apply for a "Tenant Certificate"
👉 Official details: https://lettingscheme.hkhs.com/tc/
Q3｜Under the "Rental Scheme", how long can the lease typically be?
According to the latest plan document, the standard terms are:
- Lease term: 2 years
- Starting from the 12th month, either party may terminate early (generally requiring 2 months' written notice)
Q4｜What are the consequences of renting directly without participating in the 'rental scheme'?
According to the Housing Ordinance and the Housing Authority's policy, the consequences of illegally renting out subsidized sale flats without premium payment include:
❌ 1. Considered a Violation of Subsidized Housing Conditions
The Housing Authority may require correction, and in severe cases, the unit may be reclaimed.
❌ 2. Criminal Risks
Illegally renting out subsidized housing (including public housing and unsubsidized sale flats) is a criminal offense, with maximum penalties of:
- Fine of HKD 500,000
- Imprisonment for 1 year (subject to court decision)
❌ 3. Impact on Subsequent Applications for Premium Payment/Transfer/Inheritance, etc.
Once listed as a non-compliant case, any future applications related to the unit (such as premium payment, sale, inheritance, etc.) may be subject to stricter scrutiny.
Q5｜Are there any special restrictions for renting out HOS flats that have had the land premium paid?
Once the land premium is fully paid, the unit is considered as a regular private property and can be freely rented out according to market rules.
✔ Renting Subsidized Sale Flats Must Comply With:
- General tenancy laws such as the Landlord and Tenant (Consolidation) Ordinance
- Taxation Ordinance (must declare property tax)
- Civil liabilities (e.g., maintenance, damages, etc.)
✔ Government Recommendations (Residential Property Letting Guidelines)
- Must have a written tenancy agreement (specifying lease term, rent, deposit, maintenance responsibilities)
- Pay stamp duty to the Inland Revenue Department within 1 month after signing the agreement
- If the lease term exceeds 3 years or involves special terms, it is recommended to have it reviewed by a lawyer
- Must submit CR109 (New Tenancy Notification) to the Rating and Valuation Department