Rental agreement must-know clauses: protect yourself & your rights

Key Clauses to Consider for a Secure Lease Agreement

Information for: Landlords and Tenants (Vietnamese and Foreign Expats)

Renting a property is a common transaction, especially in large cities like Ho Chi Minh City. However, to protect your rights and avoid potential risks, it’s essential to understand the key clauses in a lease agreement. This article provides a comprehensive overview of the clauses to consider, helping you feel confident when renting or leasing a property.
  1. Information of the Parties Involved:

This is the most basic but crucial clause. Ensure the information of both the lessor (landlord) and the lessee (tenant) is accurately and completely recorded.

For individuals: Full name, date of birth, ID card/Citizen ID number, permanent address, contact phone number.

For organizations/businesses: Company/organization name, head office address, tax code, legal representative information (full name, title, ID card/Citizen ID number, contact phone number).

Verifying this information will help you avoid cases of impersonation, fraud, or future disputes.

2. Detailed Description of the Leased Property:

This clause needs to accurately and fully describe the house/apartment for rent, including:

Address: House number, street name, ward/commune, district/town, province/city.

Type: House, apartment, townhouse, villa…

Area: Total usable area, area of each room (bedroom, living room, kitchen, bathroom…).

Structure: Number of floors, number of bedrooms, number of bathrooms, balcony/terrace or not…

Condition: Detailed description of the current condition of the house/apartment, including equipment, furniture (if any), electricity and water status… Photos/videos should be included as evidence.

3. Purpose of Use:

Clearly state the purpose of renting the property, whether it's for residential, office, or business purposes. Clearly defining the purpose of use will help prevent disputes if the tenant uses the property for a purpose other than what was agreed upon. For example, if you rent a house for residential purposes, but the tenant converts it into a factory, you have the right to terminate the contract.

4. Lease Term:

Clearly define the start and end dates of the lease agreement. Note any regulations regarding contract renewal (if any) and the notice period required before the contract expires.

5. Rent and Payment Method:

This is one of the most important clauses. It should clearly stipulate:

Rent: The amount of rent per month/quarter/year.

Currency of payment: VND or USD…

Payment method: Cash, bank transfer…

Payment schedule: Which day of each month/quarter/year.

Other costs: Apartment management fee, electricity, water, internet, cable TV… Which party is responsible for paying these costs.

6. Deposit:

Clearly state the deposit amount, the purpose of the deposit (to ensure contract performance, compensate for damages…), and the circumstances under which the deposit is refundable/non-refundable. Typically, the deposit will be refunded upon termination of the contract and after the tenant has fully fulfilled their payment and property handover obligations.

7. Rights and Obligations of the Lessor:

Rights: Receive rent on time, inspect the property condition (with prior notice), request the tenant to repair damage caused by the tenant's fault…

Obligations: Ensure the tenant's right to use the property during the contract term, maintain and repair major damages (if agreed), provide all relevant documents related to property ownership…

8. Rights and Obligations of the Lessee:

Rights: Use the property according to the agreed-upon purpose, request the lessor to repair damage caused by the lessor's fault, have priority for contract renewal (if agreed)…

Obligations: Pay rent on time, maintain the property, not to arbitrarily repair or renovate the property without the lessor's consent, not to sublet (unless permitted), return the property upon expiration of the contract…

9. Clauses on Repair and Maintenance:

Clearly define each party's responsibility for repairing and maintaining the property and equipment. Who is responsible for repairing minor damages and major damages? Who bears the repair costs? Specific regulations are needed to avoid future disputes.

10. Cases of Early Termination of the Contract:

Clearly state the cases in which either party has the right to terminate the contract prematurely (e.g., the lessor breaches the contract, the tenant fails to pay rent on time, the property is severely damaged and unusable…). Clearly state the compensation for damages (if any) in these cases.

11. Clause on Compensation for Damages:

Clearly state each party's liability for compensation for damages if they breach the contract. What is the specific amount of compensation? How to determine damages?

12. Clause on Dispute Resolution:

Clearly state the method of dispute resolution if any arises (e.g., negotiation, mediation, lawsuit in court…). A suitable dispute resolution method should be chosen, ensuring both rights and saving time and costs.

13. Other Clauses:

In addition to the above clauses, you can add other clauses to the contract depending on the agreement between the two parties, for example:

1. Clause on the use of common facilities (e.g., parking space, swimming pool, gym…)

2. Clause on keeping pets.

3. Clause on changing furniture and equipment.

4. Clause on home insurance (if any).

Advice:

Consult a lawyer or real estate expert before signing a lease agreement.

Read each clause in the contract carefully, ensuring you understand your rights and obligations.

Negotiate with the other party to reach the most beneficial agreement for both parties.

Create a contract appendix (if needed) to clearly state additional agreements.

Keep the contract and related documents carefully.

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Need more information or expert advice?

Contact 456 Vietnam – Your trusted partner for premium apartments in Ho Chi Minh City:

• Hotline/Zalo/WhatsApp: +84 09.3883.9977
• Email: info@456.com.vn
• Website: 456.com.vn
• KakaoTalk: xitruong456

Read more: FAQ - General Real Estate Questions (for all users)