Renting in Vietnam: Legal, Papers and Conditions

Nguyen Anh Thu06/02/2020

According to statistics of Savills, Hanoi housing offered renters and especially expats a great deal of high class and luxurious properties for rent with many projects with quality of international standard. The percentage takes up to 8.75, which is the highest of all countries as British property consultancy noted. Thanks to healthy rent and favorable conditions for foreigners, Hanoi apartments for rent are of great advantage to expats; however, the legal frame and terms of Vietnam is a bit different from those of other countries. So what are the legal terms, papers and conditions?

What are the conditions for foreigners to rent apartments in Vietnam, Hanoi?

According to Article 119 of the Housing Law 2014 stipulating the conditions of parties involved in housing transactions, the lease of properties to foreigners requires the following conditions:

  • The lessor must be the owner of the house or the person permitted by the owner to authorize the house transaction in accordance with Housing Law and the Civil Law. If the lessor is an individual, there must be full capacity for civil acts to carry out transactions on houses in accordance with Civil Law; if it is an organization, there must be legal status.
  • If the house lessee is a foreign individual, he/she must have full civil act capacity to conduct house transactions in accordance with the provisions of Vietnamese law, must be eligible to own houses in Vietnam and are not required to have temporary registration or permanent registration in the place where the property is.
hanoi housing

Vietnam housing law and what you need to know

According to Article 159 of the 2014 Housing Law, foreign individuals eligible to own houses in Vietnam include:

  • Foreign individuals who can invest in construction according to the provisions of Housing Law of Vietnam and relevant laws;
  • Foreign individuals who are allowed to enter Vietnam. Thus, in order for foreigners to rent a house, the lessee and the lessor need to meet the above conditions.

What kind of papers do expats need to know when renting in Vietnam?

Signing a lease contract in Vietnam, Hanoi is quite easy, but expats should especially pay attention to the papers of the properties you are about to rent. They must:

  • Have a certificate in accordance with the law;
  • Not subject to disputes, claims about ownership. If the lessor owns the property for a definite time, the property must still be in ownership of the lessor during the time of your contract.
  • Not in distrained for judgment execution or not in distrained to abide by the legally valid administrative decisions of competent state agencies;
  • Not subject to the decision of land acquisition, a notice of clearance and demolition of the competent authority.
  • Ensure quality and safety for the house lessee, having adequate electricity, water supply and drainage systems, ensuring environmental sanitation.

What do expats need when renting apartments in Vietnam?

Acts from the lessors that have to be included

Besides all the papers, expats when rent apartments in Hanoi also have to be sure that the lessors have all the requirements from the laws. to be more specific, before signing anything, you should make sure that they are eligible to rent you anything. This can be ensured when all of the below are certified:

  • Business Registration: Including Certificate of Land Use Rights or house purchase contract, ID card of the land user.
  • License tax paid and declare of the apartment tax code. It includes business registration certificate, tax code declaration and license tax declaration
  • Security and fire protection registration at the Security Department – District Police. It should include a copy of the household owner ‘s curriculum vitae, an application for a certificate of eligibility for security and order, a business registration certificate, a detailed ground plan and a written request for examination lawsuit on fire prevention equipment, commitment to ensure fire safety, fire protection equipment statistics, etc.
  • Temporary residence registration for foreigners at the ward police station. The dossier includes temporary residence declaration form, house lease contract, valid passport, legal residence permit in Vietnam for 6 months or more, security and registration certificate, business registration certificate. Business, Certificate of Land Use Rights or House purchase contract, ID card
  • Personal income tax paid

Expats when rent houses in Hanoi have to pay attention not only to the lessees’ papers but also the conditions and papers of the lessors to make sure your contracts are valid.