Landlord and Tenant (Consolidation) Ordinance

(1)
The landlord and tenant of a first term tenancy are to agree on the amount of
                rent for the second term tenancy of the same regulated cycle in accordance with this
                section.
(2)
The maximum percentage for an increase of rent for the second term tenancy is to
                be the lower of the
following—
(a)
the control percentage ascertained in accordance with the following
formula—
A =
B – C
×
                                        100
C
where—
A
means the control percentage;
B
means the figure of the rental index of the 4th calendar month
                        immediately before the commencement month of the purported second term
                        tenancy that is prevailing on the first day of the offer period;
C
means the figure of the rental index of the commencement month of the
                        first term tenancy that is prevailing on the first day of the offer
                        period;
(b)
10%.
(3)
The control percentage is to be rounded down to 1 decimal place.
(4)
If the control percentage ascertained is a negative figure, the rent for the
                second term tenancy is to be reduced at least by that percentage.
(5)
The maximum amount of rent for the second term tenancy calculated in accordance
                with subsection (2) or (4) is to be rounded down to the nearest integer.
(6)
If the amount of rent payable by the tenant has been reduced one or more times
                during the first term tenancy, the basis for calculating the amount of rent for the
                second term tenancy is to be the amount of rent last reduced during the first term
                tenancy.
(7)
In subsection
(2
)(
a)
—
commencement month
(
開始月份
), in relation to a first term tenancy or
                second term tenancy of a regulated cycle, means the calendar month in which the
                tenancy commences;
rental index
(
租金指數
) means the territory-wide rental index for all classes of private
                domestic properties compiled and published by the Rating and Valuation
                Department.