Residential Lease Agreements: 7 Critical Regulations You Must Know

1. General provisions on property and residential lease agreements

a. Concept of Property Lease Agreement:

An agreement between parties whereby the lessor delivers property to the lessee for use for a fixed term, and the lessee pays rent.

b. Governing Laws:

Residential lease agreements and leases for other purposes are governed by the Civil Code, the Law on Housing, and other relevant legal regulations.

c. Lease Term and Rent:

The lessor and lessee may agree on the term, the rent, and the payment method (periodic or lump-sum), except where the State regulates rent prices, in which case such regulations must be followed.

2. Conditions for housing and participating parties

a. Conditions for Leased Housing:

The housing must ensure quality and safety for the lessee, be equipped with adequate electricity, water supply, and drainage systems, and ensure environmental hygiene (unless otherwise agreed). For lease transactions, a Certificate of Ownership (Red Book/Pink Book) is not mandatory.

b. Conditions for Parties:

Parties must meet the legal capacity requirements under civil law. Domestic individuals, foreign individuals, or overseas Vietnamese are not required to have a registered residence at the location of the leased property.

c. For Foreign Individual Owners:

They may lease housing for legal purposes but must notify the district-level housing management authority in writing before leasing and fulfill tax obligations from the rental activity.

3. Form and content of Residential Lease Agreements

a. Form:

Housing agreements must be made in writing.

b. Notarization and Authentication:

Notarization or authentication of the agreement is not mandatory unless requested by the parties. The effective date is agreed upon by the parties; if there is no agreement, it is the date of signing.

c. Key Contents of the Agreement:

Names and addresses of the parties; description of the housing characteristics; transaction price; payment term and method; lease term; delivery time; rights and obligations of the parties; commitments, and other agreements.

4. Rights to continue the lease and sublease rights

• Sublease Rights: The lessee has the right to sublease the premises if the lessor agrees.

• Change of Ownership or Death of Landlord: If the owner transfers ownership or dies while the lease term remains, the lessee is entitled to continue the lease until the end of the term. The new owner or heir is responsible for continuing the existing agreement unless otherwise agreed.

• Death of Lessee: Individuals living with the lessee are entitled to continue the lease until the end of the term, except for official public housing (state-owned) or unless otherwise agreed.

5. Termination of Residential Lease Agreements

Lease agreements for non-public property terminate in the following cases:

• The term expires (for indefinite terms, termination occurs 90 days after the lessor's notice).

• Mutual agreement to terminate.

• The leased housing no longer exists, is seriously damaged with a risk of collapse, is located in an area subject to land recovery/clearance, or is requisitioned by the State. The lessor must give at least 30 days' notice in these cases.

• The individual lessee dies or is missing without anyone living with them; or the organizational lessee is dissolved, bankrupt, or ceases operations.

6. Unilateral termination of Residential Lease Agreements

The law provides cases where parties have the right to terminate the contract early (must give at least 30 days' notice unless otherwise agreed):

a. The Lessor has the right to unilaterally terminate when:

• The lessee fails to pay rent for 03 months or more without an agreed reason.

• The lessee uses the housing for incorrect purposes.

• The lessee intentionally damages, expands, renovates, or demolishes the housing without permission.

• The lessee exchanges, lends, or subleases the property without the lessor's consent.

• The lessee causes public disorder or environmental hygiene issues, seriously affecting neighbors, and fails to rectify the situation after three formal warnings.

• The lessor renovates the house when the remaining term is less than 1/3 of the contract, and both parties cannot agree on a new rent price.

b. The Lessee has the right to unilaterally terminate when:

• The lessor fails to repair the housing despite serious damage.

• The lessor increases the rent unreasonably or without prior notice as agreed.

• The right to use the housing is restricted due to the interests of a third party.

7. Maintenance and renovation of leased housing

The lessor is entitled to maintain or renovate the housing with the lessee's consent (except in emergencies). If the lessee must relocate for maintenance, the parties agree on temporary accommodation and rent. Maintenance time is not counted toward the lease term.

The lessee has the right to request maintenance (except for damage caused by the lessee). If the landlord fails to act, the lessee may perform the maintenance but must give at least 15 days' written notice with an estimated cost; the landlord must reimburse or deduct the cost from the rent.