Landlord and Tenant (Consolidation)
(Amendment) Ordinance 2025:
Complete Guide
This article unpacks the key provisions of the Ordinance from a landlord's perspective. If you only want to know "what should I do," jump directly to Section 4: "Landlord Compliance Pathway."
What is a Subdivided Flat / Basic Housing Unit (BHU)?
A subdivided flat (also known as a Basic Housing Unit or BHU) refers to a private residential unit that has been subdivided into two or more independent spaces, each rented out separately as a residence. Under Hong Kong's Landlord and Tenant (Consolidation) (Amendment) Ordinance 2025 (commonly known as the "BHU Ordinance"), all rented subdivided flats must:
- Meet the minimum habitable floor area of 8 sq m and other minimum living environment standards
- Obtain a certificate issued by the Buildings Department (valid for 5 years) before being legally rented
- Be registered by the landlord by February 2027; failure to register forfeits grace period protection
Source: Buildings Department, Hong Kong — Landlord and Tenant (Consolidation) (Amendment) Ordinance 2025, effective March 2026
1. Core Purpose of the Ordinance
The purpose of the BHU Ordinance is to improve living conditions in subdivided flats by establishing a certification scheme to ensure minimum habitable standards. The Ordinance does not aim to ban subdivided renting — rather, it allows subdivided flats to continue to exist on a compliant basis.
The Government has been clear: an outright ban on subdivided flats would worsen the housing situation for lower-income residents. The Ordinance therefore opts for a certification model rather than a prohibition model.
2. Scope of the Ordinance
The Ordinance applies to the following two categories of property:
- Subdivided units within private residential buildings
- Subdivided units within the residential portions of mixed-use buildings
Not applicable to: industrial buildings, commercial buildings, public rental housing (PRH), and Home Ownership Scheme (HOS) flats (which have separate governing regulations).
Definition of "subdivided unit": a residential unit that has been altered into 2 or more independent rental units, with at least one being used for rental.
3. Landlord's Statutory Obligations
Under the Ordinance, the landlord is the primary responsible party. Even if the unit is sub-let through an operator, the landlord remains responsible for ensuring the unit holds a valid certificate. Specific obligations include:
- Register with the Buildings Department within the 12-month registration period
- Obtain BHU certification before the grace period expires
- Maintain the unit's compliance status throughout the certification period
- Apply for renewal before the 5-year certification expires
4. Landlord Compliance Pathway
For the vast majority of landlords, the compliance pathway has just 4 steps:
- Register (March 2026 – February 2027): Register with the Buildings Department to secure grace period protection
- Assess (recommended within 2027): Have an Authorized Person (AP) conduct a unit inspection
- Renovate (based on assessment findings): Carry out necessary compliance works
- Certify (before February 2030): Obtain the BHU certificate
The difference between self-managing the process and engaging a professional team lies in: time cost, accuracy of professional judgement, and efficiency in communicating with the Buildings Department. We recommend landlords at minimum have a free consultation before deciding whether to proceed independently.
5. Consequences of Non-Compliance
Enforcement begins March 2027. Renting without certification:
- Fine up to HKD 300,000
- Imprisonment up to 3 years
- The Buildings Department may issue a mandatory order to cease renting
- Persistent non-compliance may result in revocation of certification eligibility
6. Respective Responsibilities of Landlord, Tenant, and Operator
The three parties have different responsibilities under the Ordinance:
| Party | Primary Responsibility |
|---|---|
| Landlord | Registration, certification, and renewal. Even when an operator manages the unit, the landlord remains the primary responsible party. |
| Tenant | Must not carry out unauthorised structural alterations. May lodge a complaint with the Buildings Department against an uncertified rental unit. |
| Operator | An intermediary managing the unit on behalf of the landlord. Must enter into a compliance agreement with the landlord clearly defining the allocation of responsibilities. |
Next reading: Minimum Living Standards — understand the specific technical requirements for certification.