Things To Know Before You Signing A Rental Contract ( Part 1 )
A rental contract sets out the rules landlords and tenants agree to follow in their rental relationship. It is not only a legal contract, but also an immensely practical document full of crucial business details.
Working on the rental contract terms are one of the most important steps in the renting process. Tenant themselves can hardly review all the terms correctly and make sure that they are fully protected against all cases. It’d be better if they have a decent agency who know all the possible cases that could happen and term the contract in the way that it is fair for both landlord and tenant.
Although there would be lots of things to look at in the rental contract, we will try to narrow it down to a few certain points to which you can pay more attention to in the next negotiation.
1) Protection against invalid landlord:
Making sure that the lessor (usually Party A) in the contract has all detailed information and, if possible, check their legal document for the property ownership. Just kindly ask for the documents and they will be happy to show you that they have all the rights to manage the house. Although this is usually ignored by most of the tenants, the contract is simply not valid if the lessor is not the legal owner of the property.
The fake landlord scams are not common. But they do exist.The fake landlord scams are not common. But they do exist.
2) Protection against currency devaluation
Due to the fluctuations of Vietnam Dong (VND), house owners prefer to sign house contract with tenants in USD so that they would not suffer from VND devaluation.
The complicated VND USD thing in rental contractThe complicated VND USD thing in rental contract
Therefore, the advice for any foreigner before entering the lease contract is that make sure it’s legal in terms of currency used for payment. If the rent rate is already in VND, there’s nothing to worry about. If the rent rate is quoted in USD, make sure to check the selling rate announced on Vietnam State Bank (Techcombank or Vietcombank are also fine) and have it included as fixed rate in the contract.
3) Protection against liquidation of the property
One of the most usual frustrations come from the decision of landlord to liquidize their property to the new owner. We have seen many tenants that had to move out of their house because new landlords want to make a big money out of their property.
Be careful not to be in this frustrating situationBe careful not to be in this frustrating situation
So you better check with landlord if he/she has that intention in mind in the near future before signing the contract to ensure your stable stay during the contract. Otherwise, you can include a term to ensure your rental contract remains valid even after the property has changed its ownership.