What to note when renting a house to a foreigner

Renting a house to foreigners has specific legal characteristics and is different from letting a domestic resident rent a house or an office.

The reality now shows that the demand for housing for foreigners in Vietnam is on the rise. However, before embarking on the implementation of renting to foreigners, we should note some of the following issues:

Firstly, on conditions for foreigners to rent houses:

According to Article 119 of the 2014 Housing Law stipulating the conditions of parties involved in housing transactions, the lease of a foreigner needs the following conditions:

The lessor must be the homeowner or the person authorized by the owner to authorize housing transactions in accordance with this Law and the civil law. If the lessor is an individual, must have full civil act capacity to conduct house transactions in accordance with civil law; In case of being an organization, it must have the legal person status, except for cases of giving to gratitude houses and charity houses.

The lessor must be the homeowner or the person authorized by the owner to authorize housing transactions in accordance with this Law and the civil law. If the lessor is an individual, must have full civil act capacity to conduct house transactions in accordance with civil law; In case of being an organization, it must have the legal person status, except for cases of giving to gratitude houses and charity houses.

The lessee is a foreign individual, must have full civil act capacity to conduct housing transactions in accordance with the law of Vietnam, must be subject to house ownership in Vietnam according to provisions of this Law and are not required to register temporary residence or permanent residence in the place where the house is traded.

According to Article 159 of the 2014 Housing Law, foreign individuals eligible for housing ownership in Vietnam include:

  • Foreign individuals invest in housing construction under projects in Vietnam in accordance with this Law and relevant laws;
  • Foreign individuals are allowed to enter Vietnam.

Thus, in order for foreigners to rent houses, the lessee and the lessor must fully meet the above conditions.

Secondly, regarding conditions for houses for rent:

According to Clause 1 and Clause 3 Article 118 of the Law on Housing 2014, the house for rent must meet the following conditions:

  • Having a certificate as prescribed by law;
  • Not subject to any dispute, complaint or claim over ownership; are currently in possession of houses in case of ownership of houses for a definite term;
  • Not to be distrained for judgment execution or not to be distrained to execute legally effective administrative decisions of competent state agencies;
  • Not subject to a decision of land acquisition, notice of housing clearance or demolition of a competent agency.
  • Ensuring quality and safety for the lessees, having adequate electricity, water supply and drainage systems, ensuring environmental sanitation.

“Article 118. Conditions of houses participating in transactions

  1. A house transaction, purchase, lease purchase, gifting, exchange, mortgage or capital contribution with a house must meet the following conditions:

a) Having a certificate as prescribed by law, except for the case specified in Clause 2 of this Article;

b) Not subject to disputes, complaints or lawsuits over ownership rights; are currently in possession of houses in case of ownership of houses for a definite term;

c) Not to be distrained for judgment execution or not to be distrained to execute legally effective administrative decisions of competent state agencies;

d) Not subject to a decision of land recovery, notice of housing clearance or demolition of a competent authority.

The conditions specified at Points b and c of this Clause do not apply to future house purchase, sale or lease purchase.

  1. For the following house transactions, houses are not required to have the following certificates:

a) Purchase, mortgage of houses formed in the future;

b) Organize the donation to gratitude houses and charity houses;

c) Purchase, sale, lease-purchase of state-owned houses; purchase, sale, lease-purchase of social houses and houses in service of resettlement not under state ownership; selling houses prescribed in Clause 4, Article 62 of this Law;

d) Housing lease, lending, permission to stay, management authorization;

d) Receiving house inheritance;

e) Transfer of commercial housing sale contract built in the housing construction project, including the case that the house is handed over from the investor but the application has not been submitted to the regulatory authority competent to grant Certificates of that house.

Documents proving housing conditions for the transactions prescribed in this Clause shall comply with regulations of the Government.

  1. In case the house is leased, in addition to the conditions prescribed at Points b, c and d, Clause 1 of this Article, the house must also ensure the quality and safety of the lessee and is fully systematic. electricity, water supply and drainage, ensuring environmental sanitation. “