Typical Lease Duration

Lease terms vary based on the landlord’s or tenant’s needs. The most common rental periods are 6 months, 1 year, or 2 years.

Rental Fees & Deposit

Rental Rates and Deposits
Rental prices vary depending on the specific building or project. A security deposit equivalent to 1 month’s rent is standard. If the landlord requests a 2-month deposit, it may result in a longer vacancy period before the unit is rented out.

Property Management & Leasing Services Fees

Fees vary by agency.
For example, Homelands charges:

• Commission:

  • 1-month rent for a 1-year lease

  • 1.5 months’ rent for leases longer than 2 years

• Annual Management Fee:

  • Equal to half a month’s rent per year of lease

Taxes on Rental Income

Property rental is subject to 10% tax, which includes:

• 5% VAT (Value-Added Tax)

• 5% Personal Income Tax

According to regulations, the landlord is responsible for declaring and paying these taxes proactively.

Current Rental Yield in Vietnam

As of 2023:

• Ho Chi Minh City: Approx. 3%–4%

• Hanoi: Approx. 4%–5%

• Emerging industrial cities like Hai Phong, Bac Ninh, and Bac Giang: Potentially 5%+

How to Transfer Rental Income Overseas

Landlords must open a Vietnamese bank account and use it for both receiving rental income and transferring it abroad. To remit the income internationally, the following documents are required by the bank:

• Bank Transfer details for the overseas account

• Notarized Lease Contract

• Tax Payment Certificate (proving the income is taxed)

• Passport for identity verification

Rental Payment Currency

In Vietnam, rental agreements typically specify that payments must be made in Vietnamese Dong (VND) to comply with local currency regulations and reduce exchange rate risks.

However, for international lease agreements or rentals to foreign companies, other currencies such as USD may be used, depending on mutual agreement and contract terms.

What Is a Property Management Contract?

A property management contract (often referred to as a “leasing & management agreement”) is a formal agreement where a property management company is authorized by the property owner to manage and lease the property.

Common contract contents include:

• Party Information: Names, addresses, and contact details of both the owner and the management company

• Property Description: Full details of the property, including location, size, and facilities

• Fees and Payments: Rental amount, management fees, payment schedule, and penalties for late payment

• Contract Duration: Start and end dates of the management period

• Duties and Responsibilities: Maintenance duties of the management company, rights of the owner, etc.

• Termination Clauses: Conditions and procedures for early termination

• Breach of Contract: Penalties and remedies for default

• Governing Law and Dispute Resolution: Applicable legal framework and methods for resolving disputes (e.g., arbitration or court)

• Additional Clauses: May include rules on renovations, property use restrictions, etc.

Tip: It is strongly recommended to read the contract thoroughly and seek legal advice before signing.