Office Space For Lease In District 7 Ho Chi Minh: Lease Contracts in Vietnam: What to Check

Wednesday, January 20, 2021

Lease Contracts in Vietnam: What to Check

Lease contracts in Vietnam are often intimidating, especially if you’re not won’t to the local culture and therefore the way of doing business here. Here are the highest things to seem out for when signing your rental contract.

1. Language

1. Language
Typically, lease contracts in Vietnam are written in both English and Vietnamese languages with equal cogency. However, just in case of discrepancy between English and Vietnamese languages, the Vietnamese version is going to be the legal one. Google Translate is sort of accurate to double-check the Vietnamese version.

2. Names

Carefully check the names on the rental agreement, compare with the legal papers of the owner of the building, if the name on the contract is not the owner, you need to compare with the legal authorization of the undersigned. contract.

3. Dates

Dates need to match the terms that you simply previously prescribed with the landowner. According to lease contracts in Vietnam, you’ll lose your deposit if you terminate your lease before the expiration date. The only way for you to urge your deposit back before the top date is to seek out another tenant to finish your lease (but confirm that the owner accepts this before signing).

4. Currency

We advise you to invite a lease contract with a hard and fast price in Vietnam Dong (VND) if you’re paid in VND, so as to be protected against the risk of change. Negotiate in USD but pay in VND. However, if you receive your salary in USD or pay the rent from abroad, then it won’t matter much and you’ll pay using any currency. In any case, the lease contract should state the rental price in VND as this is often the sole legal currency for lease contracts in Vietnam.

5. Deposit

As a rule of thumb, the deposit amount should be adequate to three months rent for the office. Ask for the precise amount when visiting the property, before making your decision.

6. Utilities and taxes

Electricity prices may vary greatly counting on the sort of building, and whether or not you pay it on to the supplier (EVN), or to your landlord. The official retail price of electricity ranges from VND 1678 to VND 2927 per kWh.
However, in the office building, you’ll usually pay between 3,000 to 4,500 VND/kWh to your landlord. What explains the difference? Well, building owners account for the lighting and electricity costs within the building public areas, and therefore the maintenance costs for backup generators, if any. Typically, you’ll pay around 3,500 VND/kWh, and spend more or less 1,000,000 VND per month (43 US$) for 1 or 2 persons, counting on how often you employ A/C.
Water is either included within the rental price or not costly (fixed monthly rate per person, or paid consistent with your usage).

You would possibly need a rental tax invoice from your landlord. In that case, ask your landlord if the tax is included within the rent (it usually isn’t) and if he can provide the tax invoice. You will usually need to pay 10% more on the rental price.

7. Payment

In most cases, you’ll pay your landlord by cash or bank transfer, rarely by MasterCard. Make sure the payment details (bank account owner’s name) match with the landlord’s name (lessor). If it doesn’t, then invite the rationale (maybe a tierce person is managing the property and handling payments?). However, always get a receipt for every payment (rent and deposit) with the precise property address, date, rental period, names of the payer, and therefore the receiver.

8. List of Furniture

If the office is furnished, the lease contract should also include an inventory of all the pieces of furniture that are handed over once you move in. The list of furniture won’t necessarily be comprehensive. However, make certain to see if the most items are listed and whether or nothing is missing. If you discover any discrepancies, don’t hesitate to feature it on the list, and/or ask your landlord or property manager to supply the missing item before signing. Take photos of any furniture flaws or stains on the walls and send them to the building owner.

To find out more Office administration tips, you can click here: https://lookoffice.vn/category/office-administration-tips/

For Foreign companies that want to start or expand businesses and look for an office in Vietnam: