Table Of Contents

1. Essential Terms and Conditions

Parties

  • Landlord: The individual or entity who owns the property and is renting it out.  
  • Tenant: The individual or entity who is renting the property.  

Rental Property

  • Description: A detailed description of the property, including its address, size, number of rooms, and any specific amenities (e.g., swimming pool, gym, parking).
  • Furnished or Unfurnished: Specify whether the property is furnished or unfurnished.
  • Inventory: Create a detailed inventory of all existing furniture, appliances, and fixtures in the property.

Rental Amount and Payment

  • Monthly Rent: Clearly state the monthly rental fee and any additional charges (e.g., service fees, parking fees).
  • Payment Terms: Specify the due date for rent payments and the accepted payment methods (e.g., cash, bank transfer).
  • Late Payment Penalties: Outline any penalties for late rent payments.

Security Deposit

  • Amount: Specify the amount of the security deposit to be paid by the tenant upon signing the contract.  
  • Purpose: The landlord typically holds the security deposit as a guarantee for the tenant's performance of their obligations.
  • Return: The terms for returning the security deposit at the end of the tenancy should be clearly stated, including any deductions for damages or unpaid rent.

Rental Period

  • Start and End Dates: Specify the start and end dates of the rental agreement.
  • Renewal Options: Indicate whether the tenancy can be renewed and under what conditions.

Utilities

  • Responsibility: Clearly outline who pays utilities (e.g., electricity, water, gas, internet).
  • Meter Readings: Specify how utility meter readings will be taken and how bills will be shared.

Maintenance

  • Landlord's Responsibilities: Indicate the landlord's responsibilities for maintaining the property, such as structural repairs and major appliances.
  • Tenant's Responsibilities: Specify the tenant's responsibilities for maintaining the property, such as minor repairs and keeping the property clean.

Termination

  • Notice Period: Specify the required notice period for either party to terminate the tenancy.
  • Grounds for Termination: Outline the grounds for early termination, such as non-payment of rent, breach of contract, or other specified reasons.

Dispute Resolution

  • Mechanism: Specify the mechanism for resolving disputes between the landlord and tenant, such as mediation or arbitration.
  • Governing Law: Indicate the applicable Vietnamese laws that will govern the rental agreement.

Governing Language

  • Language of Contract: Specify the language in which the contract will be written.
  • Translations: If necessary, include provisions for translations into other languages.

By addressing these essential terms and conditions, a rental contract can provide a clear and legally binding framework for the rental relationship between the landlord and tenant.

 

2. Tenant Rights and Obligations

Tenant Rights:

  • Quiet Enjoyment: Tenants have the right to peaceful enjoyment of the rental property without undue interference from the landlord or others.
  • Maintenance: Tenants have the right to request necessary repairs and maintenance of the property.
  • Security Deposit Return: Tenants have the right to the return of their security deposit at the end of the tenancy, minus any deductions for damages or unpaid rent.

Tenant Obligations:

  • Rent Payment: Tenants are obligated to pay rent on time and by the agreed-upon terms.
  • Property Care: Tenants must maintain the property in good condition and avoid causing damage.
  • Compliance with Rules: Tenants must comply with any rules or regulations outlined in the rental agreement or applicable laws.
  • Notice for Termination: Tenants must provide the landlord with the required notice period if they wish to terminate the tenancy early.

Specific Provisions in the Provided Contract:

  • Timely Rent Payment: The tenant must pay rent on time.
  • Proper Use: The tenant must use the property for the agreed-upon purposes and avoid causing damage.
  • Compensation for Damages: The tenant is liable for compensating the landlord for any damages caused to the property beyond normal wear and tear.
  • Property Management: The tenant must manage and control any equipment provided by the landlord.
  • Adherence to Regulations: The tenant must comply with all security, sanitation, and environmental regulations applicable to the property.
  • Early Termination Notice: The tenant must provide a three-month notice to the landlord if they wish to terminate the contract early.

Additional Considerations:

  • Local Laws and Regulations: The specific rights and obligations of tenants may vary depending on local laws and regulations.
  • Negotiation: Tenants may have the opportunity to negotiate additional terms or conditions in the rental agreement.
  • Legal Advice: It is advisable to consult with a legal professional to ensure that the rental agreement protects your rights as a tenant.

By understanding your rights and obligations as a tenant, you can ensure a smooth rental experience and protect your interests.

 

3. Landlord Rights and Obligations

Landlord Rights:

  • Rent Collection: Landlords have the right to collect rent payments on time and by the agreed-upon terms.
  • Property Inspection: Landlords may have the right to inspect the property periodically to ensure it is being maintained properly and to identify any potential issues.
  • Security Deposit: Landlords may retain the security deposit to cover damages caused by the tenant or unpaid rent.
  • Termination: Landlords may terminate the tenancy under certain circumstances, such as non-payment of rent, breach of contract, or other material violations.

Landlord Obligations:

  • Legal Ownership: Landlords must ensure they have legal ownership of the property and provide necessary documentation.
  • Facilitating Tenant's Use: Landlords should take necessary legal steps to ensure the tenant can legally occupy and use the property.
  • Timely Handover: Landlords must hand over the property to the tenant promptly after the contract is signed.
  • Providing Legal Documents: Landlords may be required to provide the tenant with documents proving their ownership of the property.
  • Assistance: Landlords may be obligated to assist the tenant in obtaining necessary permits or licenses for their use of the property.
  • Payment of Taxes: Landlords are responsible for paying property taxes and other relevant taxes.
  • Early Termination Notice: Landlords may be required to provide notice to the tenant if they wish to terminate the contract early.

Specific Provisions in the Provided Contract:

  • Legal Ownership: The landlord must ensure they have legal ownership of the property and provide necessary documentation.
  • Facilitating Tenant's Use: The landlord must take necessary legal steps to ensure the tenant can legally occupy and use the property.
  • Timely Handover: The landlord must hand over the property to the tenant promptly after the contract is signed.
  • Providing Legal Documents: The landlord may be required to provide the tenant with documents proving their ownership of the property.
  • Assistance: The landlord may be obligated to assist the tenant in obtaining necessary permits or licenses for their use of the property.
  • Payment of Taxes: Landlords are responsible for paying property taxes and other relevant taxes.
  • Early Termination Notice: Landlords may be required to provide notice to the tenant if they wish to terminate the contract early.

Additional Considerations:

  • Local Laws: Landlord rights and obligations may vary depending on local laws and regulations.
  • Negotiation: Landlords and tenants may have the opportunity to negotiate additional terms or conditions in the rental contract.
  • Legal Advice: Both landlords and tenants should consult with a legal professional to ensure that the contract is fair and protects their respective rights.

By understanding their rights and obligations, both landlords and tenants can establish a clear and mutually beneficial rental relationship.

 

4. Default and Termination

Grounds for Termination

  • Non-Payment of Rent: Failure to pay rent on time is a common ground for termination.
  • Breach of Contract: Other breaches of contract, such as violating property rules or using the property for unauthorized purposes, can also be grounds for termination.
  • Substantial Damage: If the tenant causes substantial damage to the property, the landlord may have the right to terminate the contract.

Notice Periods

  • Landlord Termination: The landlord may be required to provide a certain amount of notice before terminating the contract, depending on local laws and the terms of the agreement.
  • Tenant Termination: The tenant may also be required to provide notice to the landlord before terminating the contract.  

Consequences of Default

  • Eviction: In case of non-payment of rent or other material breaches, the landlord may have the right to evict the tenant.  
  • Forfeiture of Security Deposit: The landlord may withhold the security deposit to cover any damages or unpaid rent.  
  • Legal Action: In some cases, the landlord may pursue legal action to recover damages or unpaid rent.

Additional Considerations

  • Cure Period: The contract may provide for a cure period, during which the tenant may have the opportunity to remedy the default and avoid termination.
  • Subletting: If the contract prohibits subletting, the landlord may have the right to terminate the tenancy if the tenant sublets the property without permission.

Both landlords and tenants need to understand the grounds for termination and the consequences of default to avoid disputes and legal complications.

 

Vietnamese Civil Code:

  • General Contractual Principles: The Vietnamese Civil Code provides the general framework for contracts, including rental agreements.
  • Specific Provisions: The Code contains specific provisions related to leases, such as the rights and obligations of landlords and tenants.

Housing Law:

  • Rental Regulations: The Housing Law includes regulations specifically applicable to residential rental agreements.
  • Tenant Protection: The law provides certain protections for tenants, such as the right to a habitable dwelling and the right to request repairs.

Commercial Law (for commercial properties):

  • Business Leases: If the rental property is used for commercial purposes, the Commercial Law may apply.
  • Specific Provisions: The Commercial Law contains provisions related to commercial leases, including terms, conditions, and dispute resolution mechanisms.

Other Relevant Laws:

  • Consumer Protection Law: This law may provide additional protections for tenants, especially in cases of unfair or deceptive practices.
  • Dispute Resolution Laws: Laws governing mediation, arbitration, and litigation can be relevant for resolving disputes arising from rental contracts.

Key Considerations:

  • Compliance: Rental contracts must comply with all applicable Vietnamese laws and regulations.  
  • Legal Advice: Consulting with a legal professional can help ensure that the contract is drafted by the law.  
  • Updates: Keep informed about any changes or updates to relevant laws and regulations.

By understanding the legal framework governing rental contracts in Vietnam, landlords and tenants can ensure that their agreements are legally sound and enforceable.

 

6. Cultural Considerations and Etiquette

Building Relationships:

  • Respect and Politeness: Show respect and politeness towards your landlord and any property management staff.
  • Communication: Maintain open and respectful communication with your landlord or property manager.
  • Cultural Sensitivity: Be mindful of Vietnamese cultural norms and customs.

Problem-Solving:

  • Direct Communication: Address issues directly with the landlord or property manager, rather than avoiding confrontation.
  • Compromise: Be willing to compromise and find mutually agreeable solutions to problems.

Payment Practices:

  • Timeliness: Pay rent on time and avoid late payments.
  • Cash or Electronic Payments: Be aware of the preferred payment methods in Vietnam.

Noise and Disturbances:

  • Considerate Behavior: Be mindful of noise levels and avoid disturbing neighbors.
  • Quiet Hours: Respect any designated quiet hours or noise restrictions.

Property Care:

  • Maintenance: Take good care of the property and avoid causing damage.
  • Respect for Shared Spaces: If the property has shared spaces, treat them with respect and cleanliness.

Cultural Nuances:

  • Gifts: In Vietnamese culture, it is sometimes customary to give small gifts as a gesture of appreciation.  
  • Negotiations: Be prepared to negotiate on certain terms, such as the rental amount or deposit.

By understanding and respecting Vietnamese cultural norms and etiquette, you can foster a positive relationship with your landlord and create a more harmonious rental experience.

 

Importance of Legal Counsel:

  • Understanding Your Rights: A legal professional can help you understand your rights and obligations as a tenant or landlord.  
  • Contract Review: A lawyer can review your rental contract to ensure it is fair, comprehensive, and compliant with Vietnamese law.
  • Dispute Resolution: If a dispute arises, a lawyer can provide guidance on the legal process and represent your interests.  

Finding a Legal Professional:

  • Recommendations: Ask for recommendations from friends, colleagues, or other expats in Vietnam.
  • Online Directories: Search online directories for legal professionals specializing in real estate law or tenant-landlord disputes.
  • Embassy or Consulate: Your embassy or consulate may be able to provide referrals to local lawyers.

Key Considerations:

  • Language: Ensure that the lawyer you choose speaks English or has a translator available.
  • Fees: Discuss the lawyer's fees and payment terms upfront.
  • Experience: Look for a lawyer with experience in handling rental contract disputes in Vietnam.

By seeking legal advice, you can protect your rights, resolve disputes effectively, and ensure a positive rental experience.

 

Here is a link to a Template Contract for In-Principle Agreement for House Renting: In-Principle Agreement for House Renting. Of course, we would advise you to find a legal counsel to have a more personalized contract for your particular 

IN-PRINCIPLE AGREEMENT FOR HOUSE RENTING

This In-principle Agreement (hereinafter referred to as “IPA”) is signed on ____/__/200__ in ________, by and between the following parties

THE LESSOR:

Nationality: Vietnamese

(Hereinafter referred to as: “Party A”)

And

THE LESSEE:

MR.

Nationality:

Passport No.:

Date of expiry:

(Hereinafter referred to as: “Party B”)

WHEREAS:

The Party B, one of the foreign investors who are going to invest in Vietnam by co-operation with one Vietnamese company, named _____Co., Ltd in the form of _______company, engaging in _______services (Hereinafter referred to as: “Project”), wishes to lease Party A’s house to serve as the Head Office and _____of the ________company;

Party A is an authorized person of the household, owning the house to be leased, and Party A would like to sign the House Leasing Contract with Party B.

THEREFORE:

The two Parties agree to sign this IPA upon the following Terms and Conditions.

Article 1. Leasing Purposes

The Parties agree to enter this IPA for the foundation of signing the official Contract of House Leasing in the future, accordingly the established _____ company– after being granted an Investment Certificate – shall use the Leased Location as its Head Office and restaurant for business activities of the project which is approved in the Investment Certificate by the competent authorities of Vietnam.

Article 2. Main Articles and Conditions of the Official Contract of House Leasing

2.1House for lease

-Address:

-Total floor area for lease: ____ m2.

2.2Term of lease

2.2.1The _____ company shall officially sign the Contract of House leasing with Party A right after it is granted by competent authorities of Vietnam with an investment Certificate under current laws and regulations on foreign investment in Vietnam;

2.2.2Term of the official Contract of House leasing shall be ___ (___) years commencing from the date of signatures.

2.2.3 In case of extension of the Leasing Contract, the two Parties shall agree to the extension. In respect of any case, a proposal for extension should be made 30 (thirty) days in advance before the date of expiry as provided in Item (2.2.2) of this Agreement.

2.3Payment

2.3.1The payment for house leasing shall correspond to ____ USD / month (________United State Dollars) per month;

2.3.2The _____ company shall be subject to perform payments for utilities, and telephone at the Location upon the monthly actual volume (based on the figures initially agreed by the Parties at the date of handing-over).

2.3.3 Equipment that the _____ company is entitled to exploit at the location shall be particularly determined by the Parties on the date of officially signing the official Contract of house leasing and shall be listed as an Appendix which is an integral part of such Contract.

2.4Mode of payment

2.4.1Currency for payment:

The Parties shall perform the payment in Vietnam Dong. The currency provided in this IPA as well as in the future official Contract of house leasing is only for reference to determine the particular amount of payment in Vietnam Dong.

2.4.2 The payment for house leasing shall be paid every quarter. Such payment shall be made by the _____ company to Party A within the first ten days of the first month of each Quarter.

Article 3. Responsibilities of the Parties

3.1 Responsibilities of the Party A

3.1.1To ensure being the legal owner who has legal documents on the leased house;

3.1.2To be liable to carry out necessary legal procedures at competent authorities of Vietnam (if required by law) to facilitate the _____ company for its lawful exploitation of the location;

3.1.3 to hand over the house timely to the _____ company right after both Parties sign the official Contract of house leasing for timely business operation of such company;

3.1.4 to be liable to provide Party B and the _____ company with relevant legal documents presenting Party A’s ownership of the location;

3.1.5to ensure and facilitate the Party B and the _____ company with the best assistance for their full and sole right of exploitation of the house upon agreement in this IPA and the official Contract of house leasing that should be signed later on;

3.1.6 to perform the legitimate fees, and taxes about the real-estate leasing activities under current regulations of Vietnam;

3.1.7 to make a notice of 3 (three months) in advance to Party B and/or the _____ company in case of unilaterally terminating the Contract before the agreed expiry.

3.2 Responsibilities of the Party B and the _____ company

3.2.1To timely perform the payment of house leasing;

3.2.2To exploit the house for purposes as agreed;

3.2.3. To be liable to compensate for the damages, loss of furniture, and interior equipment at the location which is not caused by a normal margin of wear and tear. Actively manage and control the accompanied equipment which is proprietary to Party B and/or the _____ company;

3.2.4. To fully follow the regulations of security, sanitation, and environment at the location;

3.2.5 To make notice of 3 (three) months in advance to Party A in case of unilateral termination of the Contract before the agreed expiry.

Article 4. Other responsibilities of the two Parties

4.1 Right after the _____ company gets the Investment Certificate, both Parties shall come to signatures of the official Contract of house leasing, particularly specifying the Articles and other conditions as agreed in this IPA, also the responsibilities of the Parties should be determined. The payment for house leasing shall be specified upon particular Articles of the official Contract;

4.2 Both Parties commit to strictly performing the Articles of this IPA and the official Contract that shall signed later on. In case of disputes, the Parties shall try their utmost for conciliation. If no amicable conciliation is reached, the disputes shall be settled upon the current laws of Vietnam;

4.3 In the case where the _____ company is not granted an Investment Certificate by competent authorities of Vietnam, the Parties shall come to the commitment that no Party shall be borne by the other for any fees or payments that occurred from this IPA.

Article 5. Miscellaneous

5.1The Parties commit to strictly performing the Articles and conditions provided in this IPA;

5.2 This IPA shall take effect in 3 (three) months from the date of signatures. During this time, Party B should be liable to advise Party A in a written document of the ability to come to the official Contract of house leasing;

5.3 This IPA shall be automatically invalid upon one of the following cases:

(i) The Party B advises Party A of no signatures to the official Contract of house leasing;

(ii) The _____ company fails to be granted for Investment Certificate by the competent authorities of Vietnam;

(iii) The Parties officially sign the Contract of house leasing upon issuance of Investment Certificate to the _____ company.

5.4 This IPA is made in four (04) original copies in both Vietnamese and English with equally legal authenticity. In case of any inconsistency between the Vietnamese version and the English version due to the translation problem, the Vietnamese ones shall prevail. Each Party in this IPA keeps 01 (one) copy of both languages, 01 (1) copy is kept in the Application Dossier, and 01 (1) copy is submitted to the Licensing Authorities for their consideration.

Signatures of the Parties

 

9. Conclusion

A well-drafted rental contract is essential for a successful rental experience in Vietnam. By understanding the essential terms and conditions, rights and obligations, legal framework, and cultural considerations, and seeking legal advice, you can protect your interests and avoid potential disputes. By following these guidelines, you can ensure a smooth and positive rental experience in Vietnam.
If you need further explanation on this subject, please don't hesitate to contact us through email at lienhe@luatminhkhue.vn or phone at: +84986 386 648—lawyer To Thi Phuong Dzung.