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Amstrong owns a residential property in Hong Kong. On 20 March 2021, Amstrong entered into a one-year lease with Otto. The terms of the lease,
Amstrong owns a residential property in Hong Kong. On 20 March 2021, Amstrong entered into a one-year lease with Otto. The terms of the lease, as well as other related information, are as follows: i. Term of the lease: one year from 1 April 2021, renewable on the anniversary date ii. Monthly rental: $25,000, payable in advance iii. Rent-free period: one month from 1 April 2021 iv. Rental deposit: two months' rental, nonrefundable and paid on signing the lease agreement. v. Management fee: $3,000 monthly, payable by Amstrong to the property management company that runs and maintains the facilities and amenities services. vi. Government rent: $1,000 per quarter, payable by Amstrong vii. Rates: $1,400 per quarter, payable by Amstrong. (The rates were fully reduced by the $1,500 rate concession granted by the Hong Kong SAR government.) viii. Bank loan interest: $12,000 per month. ix. Renovation: $80,000, incurred by Amstrong before the tenant moved in x. Repairs: $2,000, incurred by Otto to pay for the digital door-lock (broken but not due to tenant's misuse or fault), which was not reimbursed by Amstrong nor deducted from the monthly rental payment xi. Agency fee: 50% of one month's rental, payable by Amstrong upon
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