DANANG VILLA REALTY

Here are the key points to consider regarding the "Lease Agreement" when renting properties in Danang, Vietnam. There are many points to be aware of, especially for foreigners, when entering into lease agreements in Vietnam.

Landlord (Owner)

One significant difference from leasing agreements in some other countries is that the "landlord" holds more authority than the "tenant." It's crucial to find a cooperative landlord who is accommodating to foreigners.

Contract

Format and Language of the Contract

• Most lease agreements for apartments aimed at foreigners are written in both Vietnamese and English. Typically, the format favors the landlord. While there's no standardized format like in some other countries, the main terms are similar, but aspects such as obligations for maintenance of the property, deposit, and lease duration require attention.

Contract Signing

• The contract requires signatures from both the landlord and the tenant. Signatures usually match those found on passports. It's essential to thoroughly understand the contract terms, as some may favor the landlord.

In cases of disputes between foreign tenants and Vietnamese landlords, proceedings are based on the Vietnamese version of the contract, prioritizing the Vietnamese language.

Additionally, while it's customary for the landlord to be the owner of the property, some properties are subleased, necessitating confirmation of ownership through invoices and housing registration certificates.

Lease Period

The lease duration varies based on purposes such as relocation within Vietnam, immigration from abroad, or extended vacations. It's advisable to communicate the desired lease period to the landlord promptly. While short-term leases of three months to six months are common, negotiations for leases exceeding a year are recommended to align with the landlord's preference for long-term tenants. However, for those unfamiliar with living in Danang, short-term leases are recommended initially for a few months to assess the neighborhood before committing to a longer-term lease.

Rent

Rental prices in Vietnam are normally paid in Vietnamese dong (VND) or US dollars, but contracts are typically in VND as per Vietnamese law. Payment methods may include cash, and bank transfers domestically or internationally.

Deposit

Similar to the security deposit in Japanese leases, deposits in Vietnam vary depending on the property type. Typically, apartments require a one-month deposit, while condominiums may need two months. Office spaces often require a three-month deposit. The deposit covers any discrepancies during move-out, with the remainder returned to the tenant. It's essential to adhere to the notice period specified in the contract, typically 30 days, to ensure the return of the deposit.

Services, Utilities, and Wi-Fi

Most residential leases do not cover electricity and water expenses. High-end serviced apartments may include periodic room cleaning and facilities like bike parking, pools, and gyms, necessitating clarification on usage fees. Given the high cost of electricity in Vietnam compared to Japan, conserving energy is advised.

VAT (Value Added Tax)

Service apartments often incur a 10% VAT, primarily if managed by corporations, whereas condominiums, often individually owned, may not. It's crucial to confirm whether taxes are included in the rent.

Furniture Inventory and Pre-move-in Inspection

Many Vietnamese apartments are furnished. Before signing the contract, ensure the listed furniture is present and in satisfactory condition. It's advisable to take photos before moving in. Any furniture issues should be promptly reported to the landlord for repair.

Renewal and Termination

Notice periods for renewal or termination typically range from 30 to 60 days before the contract expiration date. For those wishing to continue their stay, the agency or property manager will communicate contract conditions for the following year.

Notice and Procedures for Termination

Termination notices are usually issued 30 to 60 days before the contract ends. Delayed notices may result in additional rent charges. Both parties will conduct a joint inspection for key return and inventory checks on the move-out date.

Red Invoice Issuance

For corporate leases, confirmation of red invoice issuance is necessary. Red invoices are essential for expense processing. Individual landlords may not issue them.

Residence Registration

To reside in Vietnam, landlords must report to local authorities and register the tenant's temporary residence. It's crucial to ensure compliance with these regulations to avoid penalties or eviction. The application period aligns with the visa duration, requiring timely renewal before expiration.

Failure to obtain a proper registration certificate or leasing from unlicensed landlords may result in the inability to obtain residency permits or work permits.

Expenses and Required Documents at the Time of Contract

1. Customer's Passport, Residence Visa

2. Deposit: Equivalent to 1-2 months' rent

3. Advance Rent Payment: Equivalent to 1-3 months' rent

4. Brokerage Fee: Equivalent to 1 month's rent (prorated for contracts less than 1 year)

For inquiries

Da Nang Villa Realty offers a wide range of properties in Danang and nearby areas, catering to various needs such as relocation, investment, or business expansion. Contact us via email, LINE, or phone to discuss your preferences in terms of location, budget, size, and time. With residential Japanese real estate professionals and bilingual speaking capacity, Da Nang Villa Realty ensures a seamless experience in leasing and property transactions.

For inquiries, contact us at:

Da Nang Office

Phone: +84-79.509.3575

Email: infodvr@danangvillarealty.com

Japan Office: +81-98.369.3575