Licensing Regime
A. Matters relating to the transitional period of the licensing regime
The licensing regime came into operation on 1 August 2020. PMCs and related PMPs may now apply for licences. To allow sufficient time for the industry to adapt to the new regime, the first three years after the implementation of the licensing regime will be a transitional period. After the transitional period ends on 1 August 2023, it is an offence for PMCs and related PMPs to provide property management services without a licence.
The first three years after the implementation of the licensing regime (i.e. from 1 August 2020 to 31 July 2023) is a transitional period during which an individual who possesses the required work experience in assuming a managerial or supervisory role in the provision of property management services for properties in Hong Kong but does not meet the academic and/or professional qualifications criteria for holding a PMP licence may apply for and be issued a provisional PMP licence. Upon completion of a specified course before the expiry of the provisional licence, the PMP may apply for a formal licence without meeting the academic qualifications and/or professional qualifications criteria.
B. Matters relating to the property management practitioner licences
A property management company (PMC) may provide different property management services to different properties, and if a PMC provides more than one category of property management services, then it is required to hold a PMC licence. If a PMP is appointed by a PMC which is required to hold a licence and assumes managerial or supervisory role in the property management services provided by the PMC to a property, the PMP is required to hold a PMP licence. Other PMPs (i.e. those who do not assume managerial or supervisory role) are not required to hold PMP licence.
C. "Work experience in property management" required for property management practitioner licence application
“Work experience in property management” is full time work experience in property management for properties (whether subject to a deed of mutual covenant or not) in Hong Kong and involving the provision of services under two or more categories of prescribed property management services. In addition, please refer to the following for more information about work experience.
For information on how to calculate the period of “work experience in property management” in order to comply with the relevant licensing criterion, please click here. Furthermore, if a PMP has been or is currently engaged in property management work in places in China other than Hong Kong (that is, including the Mainland, Macau and Taiwan) and was engaged in property management work in Hong Kong immediately before that job, please refer to Question 10 and Question 11.
If an applicant, before submitting an application, was engaged in property management work in places in China other than Hong Kong (including the Mainland, Macau and Taiwan) and had been engaged in property management work in Hong Kong immediately before the aforesaid work, his/her work experience in providing property management services in places in China other than Hong Kong cannot be counted, but the relevant years of work experience that can be counted can be extended accordingly. That is, the period that can be counted would be extended according to the years of work (whether continuous or intermittent) in providing property management services in places in China other than Hong Kong, subject however to a maximum of 4 years.
If the applicant applies for a PMP (Tier 1) licence through Route 1, the applicant must have a minimum of 3 years of work experience in property management within the 10 years Note 1 (i.e. 6 years + 4 years) immediately before the licence application. If the applicant submits an application for a PMP (Tier 1) licence on 1 October 2021, the period that could be counted would be from 1 October 2011 to 30 September 2021. Since the applicant was engaged in property management work in Hong Kong from 2011 to 2016, he/she has 3 years or more of work experience in property management in Hong Kong, and therefore fulfils the relevant work experience criterion for holding a PMP (Tier 1) licence.
If the applicant applies for a PMP (Tier 1) licence through Route 2, the applicant must have a minimum of 5 years of work experience in property management within the 12 years Note 2 (i.e. 8 years + 4 years) immediately prior to the licence application. Similarly, if the applicant submits an application for a PMP (Tier 1) licence on 1 October 2021, the period that could be counted would be from 1 October 2009 to 30 September 2021. Since the applicant was engaged in property management work in Hong Kong from 2009 to 2016, he/she has 5 years or more of work experience in property management in Hong Kong, and therefore fulfils the relevant work experience criterion for holding a PMP (Tier 1) licence.
Please note that the period that can be counted would be extended up to 4 years, that is, if the applicant has been engaged in property management work in places in China other than Hong Kong for 6 years, the period that could be counted would only be extended by 4 years.
The work experience in property management means full time work experience in property management for properties in Hong Kong, and involving provision of services under two or more categories of property management services.
If an applicant, before submitting the application, was engaged in property management work in places in China other than Hong Kong (that is, including the Mainland, Macau and Taiwan) and had been engaged in property management work in Hong Kong immediately before the aforesaid work, the applicant may refer to this example beforehand, and calculate the period that can be counted according to his/her situation. If an applicant has any questions about calculation of work experience, please email the question to [email protected] for enquiry.
Note 1: According to the calculation of the relevant criterion (see paragraph 1), the period (i.e. 4 years) of providing property management services in Shanghai (i.e. places in China other than Hong Kong) of the applicant can be added to the calculation of the period of the years of work experience (for application for a PMP (Tier 1) licence through Route 1, i.e. the 6 years immediately before licence application, plus 4 years of work experience in property management in Shanghai, resulting in a total of 10 years).
Note 2: According to the calculation of the relevant criterion (see paragraph 1), the period (i.e. 4 years) of providing property management services in Shanghai (i.e. places in China other than Hong Kong) of the applicant can be added to the calculation of the period of the years of work experience (for application for a PMP (Tier 1) licence through Route 2, i.e. the 8 years immediately before licence application, plus 4 years of work experience in property management in Shanghai, resulting in a total of 12 years).
If an applicant, before submitting an application, was engaged in property management work in places in China other than Hong Kong (including the Mainland, Macau and Taiwan) and had been engaged in property management work in Hong Kong immediately before the aforesaid work, his/her work experience in providing property management services in places in China other than Hong Kong cannot be counted, but the relevant years of work experience that can be counted can be extended accordingly. That is, the period that can be counted would be extended according to the years of work (whether continuous or intermittent) in providing property management services in places in China other than Hong Kong, subject however to a maximum of 4 years.
If the applicant applies for a PMP (Tier 2) licence through Routes 1 or 2, the applicant must have a minimum of 2 years of work experience in property management within the 9 years Note 1 (i.e. 5years + 4years) immediately before the licence application. If the applicant submits an application for a PMP (Tier 2) licence on 1 October 2021, the period that could be counted would be from 1 October 2012 to 30 September 2021. Since the applicant was engaged in property management work in Hong Kong from 2012 to 2015 and from 2020 to 2021, he/she has 2 years or more of work experience in property management in Hong Kong, and therefore fulfils the relevant work experience criterion for holding a PMP (Tier 2 ) licence.
If the applicant applies for a PMP (Tier 2) licence through Route 3, the applicant must have a minimum of 4 years of work experience in property management within the 12 years Note 2 (i.e. 8 years + 4 years) immediately prior to the licence application. Similarly, if the applicant submits an application for a PMP (Tier 2) licence on 1 October 2021, the period that could be counted would be from 1 October 2009 to 30 September 2021. Since the applicant was engaged in property management work in Hong Kong from 2011 to 2015 and from 2020 to 2021, he/she has 4 years or more of work experience in property management in Hong Kong, and therefore fulfils the relevant work experience criterion for holding a PMP (Tier 2) licence.
Please note that the period that can be counted would be extended up to 4 years. As such, although the applicant has been engaged in property management work in places in China other than Hong Kong for 5 years, the period that could be counted would only be extended by 4 years.
The work experience in property management means full time work experience in property management for properties in Hong Kong, and involving provision of services under two or more categories of property management services.
If an applicant, before submitting the application, was engaged in property management work in places in China other than Hong Kong (that is, including the Mainland, Macau and Taiwan) and had been engaged in property management work in Hong Kong immediately before the aforesaid work, the applicant may refer to this example beforehand, and calculate the period that can be counted according to his/her situation. If an applicant has any questions about calculation of work experience, please email the question to [email protected] for enquiry.
Note 1: According to the calculation of the relevant criterion (see paragraph 1), the applicant has provided property management services in Macau (i.e. places in China other than Hong Kong) for 5 years, while the countable period can be extended is 4 years (for application for a PMP (Tier 2) licence through Routes 1 or 2, i.e. the 5 years immediately before licence application, plus a maximum of 4 years of work experience in property management in Macau), resulting in a total of 9 years.
Note 2: According to the calculation of the relevant criterion (see paragraph 1), the applicant has provided property management services in Macau (i.e. places in China other than Hong Kong) for 5 years, while the countable period can be extended is 4 years (for application for a PMP (Tier 2) licence through Route 3, i.e. the 8 years immediately before licence application, plus a maximum of 4 years of work experience in property management in Macau), resulting in a total of 12 years.
In assessing whether an applicant meets the criterion for work experience in property management, the Property Management Services Authority will consider the nature of the relevant property management services (PMSs) rather than the location where they are provided. For example, cleaning services provided in club houses, playgrounds, car parks, etc., of a property will only be considered as the prescribed PMSs under category 2 (management of the environment of a property) but not category 5 (facility management relating to a property). Similarly, repair services provided in the ancillary facilities of a property will only be regarded as the prescribed PMSs under category 3 (repair, maintenance and improvement of a property) but not category 5 (facility management relating to a property). Therefore, according to the situation mentioned in the above question, the relevant work only involves the prescribed PMSs under category 2 (management of the environment of a property).
In assessing whether an applicant meets the criterion for work experience in property management, the Property Management Services Authority will consider the nature of the relevant property management services (PMSs). The provision of other categories of PMSs which are incidental to the provision of the relevant PMSs will also be regarded as those of the same category of the relevant PMSs. According to the situation mentioned in the above question, since the attendance of meetings with owners or owners’ organisations, handling of enquiries and complaints, calculation of expenses, preparation of financial budgets for projects, drafting and analysing tenders on project proposals for comparison, carrying out site visits to ensure that the construction procedures are proper and safe, arranging for technicians, maintenance and contractor services, etc., are all required because of the maintenance matters, they are considered to be incidental services to the provision of maintenance service and thus they will only be regarded as the prescribed PMSs under category 3 (repair, maintenance and improvement of a property).
The prescribed property management services (PMSs) under category 6 (human resources management relating to personnel involved in the management of a property) refer to human resources management services in relation to employees engaged by an owner or owners’ organisation in the provision of PMSs. Examples include: an owner or owner’s organisation intends to employ a cleaner and therefore entrusts a property management company to recruit and manage the cleaner on his/its behalf, including providing training, preparing staff roster and work schedules, handling labour insurance, etc., and the property management practitioner providing such services will be considered having the experience in providing the prescribed PMSs under category 6 (human resources management relating to personnel involved in the management of a property). However, if a property management practitioner provides the above-mentioned human resources management services only to the property management company itself and not to the owners or owners’ organisations, he/she will not be considered to have provided the prescribed PMSs under category 6 (human resources management relating to personnel involved in the management of a property).
Pursuant to Schedule 1 to the Property Management Services Ordinance and Schedule 1 to the Property Management Services (Licensing and Related Matters) Regulation, there are seven prescribed categories of property management services. However, the experience in teaching property management courses does not belong to any prescribed categories of property management services. As such, the work experience of being a lecturer of a property management course is not regarded as property management work experience, and therefore could not meet the criteria for work experience in property management for the purpose of licence application.
D. Academic qualification required for property management practitioner licence application
The PMSA will consider all relevant factors in determining what an equivalent academic qualification is, including the QF Level and QF Credit of the academic qualification assessed under the Hong Kong Qualifications Framework. Details may be found here.
In considering whether a qualification is acceptable, the PMSA will consider all relevant factors, including qualifications obtained through the “Recognition of Prior Learning” mechanism under the Hong Kong Qualifications Framework. Under this mechanism, qualifications that can be considered acceptable by the PMSA include five statements of attainment for the clusters of units of competency at Level 4 for the property management industry (one of the statements must be on “Management of Customer Services”).
A list of bachelor or higher degrees, associate degrees or diplomas in a subject or discipline specified by the PMSA is published in the PMSA’s website, and these academic qualifications are of a subject or discipline relating to property management.
E. Matters relating to the property management company licences
Subject to section 7 of the Property Management Services Ordinance (PMSO), PMCs providing properties (subject to deeds of mutual covenant) in Hong Kong with property management services falling within more than one category of services under the PMSO are required to be licensed after the transitional period. The PMSO defines “property” as “building” in the Building Management Ordinance (Cap. 344). In other words, if a PMC provides two or more categories of prescribed property management services to the buildings in Hong Kong, it is required to be licensed.
Subject to section 7 of the Property Management Services Ordinance (Cap. 626) (PMSO), PMCs providing properties (subject to deeds of mutual covenant) in Hong Kong with property management services falling within more than one category of the prescribed property management services after the transitional period are required to be licensed. The exception under section 7(6) of the PMSO does not apply to the PMC in question because it is neither the owner of the properties concerned nor an individual. Therefore, if the PMC in question provides properties (subject to deeds of mutual covenant) in Hong Kong with property management services falling within more than one category of the prescribed property management services, it is required to be licensed, regardless of whether the properties are held by its holding company or not.
If the DMC manager PMC provides properties (subject to deeds of mutual covenant) in Hong Kong with PMSs falling within more than one category of the prescribed PMSs under the Property Management Services Ordinance, it is required to apply for a PMC licence regardless of whether it has outsourced the relevant services or not.
However, if the DMC manager PMC has outsourced all the relevant PMSs to other licensed PMC(s), and if the outsourced licensed PMC(s) concerned has/have already included the number of flats involved in the calculation of its/their own minimum manning ratios for licensed property management practitioners (PMPs), then the DMC manager PMC may exclude the number of flats concerned in the calculation for meeting its own minimum manning ratios for licensed PMPs.
F. Matters relating to the minimum manning ratios specified by the PMSA
A “flat” is any premises in a building which are referred to in a deed of mutual covenant (DMC) whether described therein as a flat or by any other name and whether used as a dwelling, shop, factory, office or for any other purpose, of which the owner, as between himself and owners or occupiers of other parts of the same building, is entitled to the exclusive possession.
According to the definition above, for example, a car parking space having undivided shares in the property concerned as referred to in a DMC and of which the owner, as between himself and owners or occupiers of other parts of the same building, is entitled to the exclusive possession of the car parking space, is a flat for the purposes of the Property Management Services Ordinance (Cap.626) (PMSO).
Example 1
It is stated in a DMC that the building has “348 Car Park Units at 25 Undivided Shares each”. These car parking spaces are regarded as 348 flats for the purposes of the PMSO. Therefore, there are 352 flats in the DMC.
Example 2
It is stated in a DMC that the building has “Multi-storey Car Park Accommodation having 184 undivided shares”. The Multi-storey Car Park Accommodation is regarded as one flat for the purposes of the PMSO. Therefore, there are 5 flats in the DMC.
If the relevant deed of mutual covenant states that the rooftop and the flat underneath each has undivided shares, they should be counted as two flats.
G. Matters relating to application form of property management company licence
The item regarding “engaging one or more licensed PMC(s) to provide any PMSs to the property concerned” as stated in the application form actually asks whether the applicant has outsourced to other licensed PMCs the PMSs it is required to provide. Therefore, if the relevant PMC provides PMSs to the property or any part of it on its own, it will not be regarded as “engaging one or more licensed PMC(s) to provide any PMSs to the property concerned”, and it may also disregard whether the other parts included in the DMC (such as car parks or shopping malls) are managed by other licensed PMC(s).
H. Change of particulars for property management company licences
Section 17(1) of the Property Management Services Ordinance (Cap. 626) and section 14 of and Schedule 4 to the Property Management (Licensing and Related Matters) Regulation stipulate that licensees must, within 31 days after any change of the prescribed matters (including change of director(s)) takes place, notify the PMSA in writing in the forms specified by the PMSA and accompanied by the supporting documents which the PMSA may from time to time specify.
Licensees are required to comply with certain requirements set out in the Property Management Services Ordinance (Cap.626) and the Property Management Services (Licensing and Related Matters) Regulation (Cap.626B), including the conditions imposed on a PMC licence. One of the conditions imposed on a PMC licence requires the PMC to continue to meet the criteria for holding the licence, that is, the PMC is required to engage at least one licensed PMP (Tier 1) (whether part-time or full-time) who has effective control of the provision of PMSs by the PMC concerned, and the PMC is also required to engage a number of full-time licensed PMPs that meets the minimum manning ratios specified by the PMSA. As there is no grace period stipulated in the relevant ordinance, licensed PMCs should recruit sufficient manpower to cope with the turnover of licensed PMPs to ensure compliance with the relevant criteria at any time.
I. Owners’ organisation and property management services
An owners’ organisation, in relation to a property, means an organisation (whether or not formed under the Building Management Ordinance (Cap. 344) or a deed of mutual covenant) that is authorised to act on behalf of all the owners of the property. An owners’ corporation is an example of an owners’ organisation.
An owners’ corporation is an owners’ organisation within the meaning of the Property Management Services Ordinance (Cap. 626) (PMSO). The subsidiary legislation stipulates that the duties and obligations performed by an owners’ organisation pursuant to the Building Management Ordinance (Cap. 344) are not property management services prescribed under the PMSO and therefore, an owners’ corporation performing only such duties and obligations is not required to hold a licence.
J. Matters relating to car park management companies
According to the provisions of the Property Management (Licensing and Related Matters) Regulation (Cap. 626B) (the Regulation), car park management services fall within category 5 of the property management services (PMSs): “Facility management relating to a property – Services for the management of ancillary facilities in a property (except category 3 of the PMSs: “Repair, maintenance and improvement of a property”). For the 7 categories of the PMSs stipulated in the Regulation, details may be found here.
If the company concerned only provides one category of the PMSs (for example, only provides category 5 facility management services), pursuant to section 7(2) of the Property Management Services Ordinance (Cap. 626), it is not required to hold a PMC licence.
If the company concerned provides not only category 5 of the PMSs but also any other category(ies) of the PMSs, such as category 3: “Repair, maintenance and improvement of a property” to the building in which the car park is located, it is required to hold a PMC licence. As to whether the provision of repair, maintenance and improvement services in car parks will be regarded as providing category 3 of the PMSs, please refer to Question 35.
If the company concerned, in the capacity of a tenant, only rents the car park concerned for its business of providing parking services, and does not provide two or more categories of property management services to the building in which the car park is located, then the company concerned is not required to hold a PMC licence.
If the sub-contractor PMC concerned, apart from managing the car park (management of car parks falls within category 5 of the property management services (PMSs), i.e. facility management relating to a property), does not provide two or more categories of the PMSs to the building in which the car park is located, then the sub-contractor PMC concerned is not required to hold a PMC licence.
If the sub-contractor PMC concerned, apart from managing the car park (management of car parks falls within category 5 of the PMSs, i.e. facility management relating to a property), provides two or more categories of the PMSs to the building in which the car park is located, the sub-contractor PMC concerned is required to hold a PMC licence.
Pursuant to section 3 of Schedule 1 to the Property Management Services (Licensing and Related Matters) Regulation (Cap. 626B), a PMS incidental to and necessary for the provision of a property management service under a category of the PMSs such as category 5 (i.e. facility management relating to a property – Services for the management of ancillary facilities in a property (except property management services falling within category 3: “Repair, maintenance and improvement of a property”) is regarded as a PMS under that specific category (i.e. category 5) only.
If the company concerned repairs and maintains installations in the respective car park for the purpose of providing category 5 of the PMSs, while the repair and maintenance of the building in which the car park is located is undertaken by another PMC (such as the DMC manager), then generally speaking, the repair and maintenance of installations in the car park can be regarded as an incidental and necessary PMS under category 5. Since the company concerned only provides category 5 of the PMSs (i.e. only provides one category of the PMSs), it is not required to hold a PMC licence. However, depending on the actual circumstances, if the repair involves the repair, maintenance and improvement of the building concerned, and is not incidental and necessary PMS falling within category 5 of the PMSs, then the company concerned may be regarded as providing category 3 of the PMSs: “repair, maintenance and improvement of a property”. Since the company concerned provides categories 3 and 5 of the PMSs, it is required to hold a PMC licence.
A PMC that manages a car park is also required to meet the minimum manning ratios specified by the PMSA if it applies for a PMC licence. According to the current formula for calculating the specified minimum manning ratio, a PMC is required to engage at least one licensed PMP (Tier 1) for every 3,000 flats or below, and at least one licensed PMP (Tier 2) for every 1,500 flats or below.
For a parking space the owner of which enjoys exclusive possession as stated in the deed of mutual covenant (DMC) of a building, the undivided share(s) allocated to his/ her “parking space” shall, for the purpose of administering the Property Management Services Ordinance (Cap. 626), be treated as a “flat”. Therefore, when applying for a PMC licence, in terms of calculating the minimum manning ratio specified by the PMSA, a “parking space” to which an undivided share is allocated is to be regarded as a “flat”. Depending on how the DMC allocates the undivided shares, some entire car parks/parking premises is only regarded as one “flat”, which is to be used as the basis for calculating the minimum manning ratio. If, according to the DMC, an individual “parking space” is regarded as one “flat”, then the minimum manning ratio is also to be calculated on that basis.
For details on the calculation of number of “flats”, please refer to Question 22.
K. Others
The PMSA has stipulated in the Property Management Services (Licensing and Other Matters) Regulation (Cap. 626B)(subsidiary legislation) that property management services (PMSs) incidental to and necessary for the provision of the PMSs under a category of services prescribed in the subsidiary legislation are regarded as PMSs under that category only. For the provision of one category of PMSs (primary service), it may at times be necessary to involve the provision of PMSs under another category or other categories of services because of prevailing trade practices or procedures regarded as standard. In such a case, the PMSs under other categories will be regarded as incidental services to the primary service.
There is no specified format but the best practice is to use the wording set out in the Property Management Services Ordinance, as follows:
Licensed PMP (Licence no. P1-XXXXXX); or
Licensed PMP (Tier 1) (Licence no. P1-XXXXXX)