By Wing Chow
1. Introduction: Why the “Simple Flat” Policy Matters
The Hong Kong government introduced the “Simple Flat Regulatory Scheme” in late 2024, requiring all existing subdivided flats to register and obtain certification by 2028. Non-compliance may lead to penalties. This policy aims to enhance safety, protect tenants, and provide landlords with a legal pathway to operate.
2. Key Changes Under the New Regulations
Mandatory Registration & Certification
- Timeline : Registration opens in Q4 2025 ; landlords must submit valid tenancy agreements and AR2 forms.
- Grace Period : 36 months (3 years) after registration to meet certification standards.
Upgraded Living Standards
- Safety Compliance : Fire safety, structural integrity, and window requirements (≥0.1㎡ operable window, even facing enclosed lightwells).
- Professional Certification : Verified by architects or surveyors.
Stricter Tenancy Control
Rent Increase Cap : Linked to the government’s private rental index.
Lease Protection : 2-year initial lease + 2-year renewal (4 years total).
3. Landlord Action Plan: 5 Steps to Compliance
Step 1: Register Immediately
- Documents : Valid tenancy agreement (active 3 months before “specified date”) and AR2 form.
- Cost : Free registration.
Step 2: Assess Compliance
- Consult Experts : Hire professionals to evaluate structural/fire safety.
Step 3: Renovation & Tenant Coordination
- Relocation Support : Offer transitional housing options if renovation is required.
Step 4: Obtain Certification
- Submit Proof : Provide certification documents to authorities.
Step 5: Adhere to Tenancy Rules
Follow Guidelines : Respect lease terms and rent caps.
4. Risks of Non-Compliance
Penalties : Fines or criminal charges for unregistered flats.
Illegal Alterations : Strict enforcement against land-use violations.
5. Conclusion: Embrace Compliance for Long-Term Success
While the new rules add complexity, compliance enhances property value and tenant trust. Landlords should leverage the 3-year grace period to adapt.
