Tenancy or lease renewal in Vietnam
Renewing a tenancy or lease agreement in Vietnam typically involves negotiation between the landlord and tenant, agreeing on new terms or extending existing ones, and then formalizing the agreement in writing. The specific steps can depend on the type of property and the original contract.
It is generally advisable for both parties to begin discussions about renewing a lease several months before its expiration date. This allows sufficient time for negotiations on new terms, such as rent adjustments or contract duration, and to ensure continuity of occupancy or to find new arrangements if renewal is not desired. Processing times are usually not a factor for private agreements, but it ensures ample time for decision-making.
Start 90 days ahead
This lead time allows for thorough negotiation between the landlord and tenant, especially if new terms are to be discussed, and provides adequate time for either party to make alternative arrangements if the lease is not renewed. It also accounts for potential scheduling of notarization if desired.
The process
- 1Review the existing tenancy agreement for clauses related to renewal, notice periods, or rent adjustments.
- 2Initiate discussions with the other party (landlord or tenant) regarding the intention to renew the lease.
- 3Negotiate new terms, if any, such as rent amount, lease duration, or specific conditions.
- 4Draft a new lease agreement or an addendum/renewal agreement incorporating the agreed-upon terms.
- 5Both parties review the new document carefully to ensure it reflects their understanding.
- 6Sign the new or renewed agreement. This may be done privately or in the presence of a notary public, depending on the parties' preference or if required by law for specific types of leases (e.g., long-term commercial leases).
What to bring
- Original tenancy or lease agreement
- Identification documents of both landlord and tenant (e.g., National ID card, passport)
- Proof of ownership for the landlord (e.g., Certificate of Land Use Rights and Ownership of Houses and Other Land-Attached Assets, known as a 'Red Book' or 'Pink Book')
- If notarizing, any other documents requested by the notary office.
Who handles it
No specific government authority directly governs the renewal of private tenancy agreements; it is primarily a matter of civil contract law between the parties. Local People's Committees or Notary Offices may be involved if the parties choose to notarize the new agreement.
The primary cost associated with renewing a tenancy agreement is any potential increase in rent as agreed upon by the parties. If the parties choose to notarize the new agreement, notary fees will apply, which can vary based on the value of the lease and the notary office.
What commonly goes wrong
- Ensure all new terms, especially rent and duration, are clearly specified in the written agreement to avoid future disputes.
- Be aware of notice periods stated in the original contract; failure to provide timely notice could affect renewal options.
- Verify that the new agreement is signed by all legal parties to the contract, and if applicable, properly witnessed or notarized.
- For long-term leases (e.g., 6 months or more), particularly for commercial properties, ensure the lease is in written form and consider notarization to enhance legal enforceability, as specific regulations may apply.
Sources
- Vietnam’s Law on Housing No. 65/2014/QH13 thuvienphapluat.vn
- Vietnam’s Civil Code No. 91/2015/QH13 thuvienphapluat.vn
Other documents in Vietnam
Tenancy or lease renewal in other countries
Often renewed together
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