i) Rental Deposit
Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) stipulates the amount and the repayment terms of rental deposits for regulated tenancies.
Maximum Amount
Despite any provision of the tenancy, the rental deposit payable by the tenant may not be more than 2 months’ rent under the tenancy. If a provision of the tenancy requires the tenant to pay a rental deposit of more than 2 months’ rent, the provision is taken to be requiring the tenant to pay a rental deposit equal to 2 months’ rent only;
Repayment Terms
If the outstanding money payable by the tenant to the landlord under the regulated tenancy has been settled, the landlord must return the rental deposit to the tenant, free of interest, no later than the expiry of 7 days after the tenant has handed over the subdivided unit back to the landlord on the expiry of the term or an early termination of the tenancy.
Otherwise, the rental deposit can be returned no later than 7 days after the settlement of the outstanding money payable by the tenant.
If it is a first term tenancy followed by a second term and the outstanding money payable by the tenant has been settled, the landlord must also return the rental deposit to the tenant no later than the expiry of the term.
The landlord may deduct from the rental deposit the amount of any arrears of rent, or costs, expenses, losses or damages sustained by the landlord as a result of any breach of the tenancy by the tenant.
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