Are lessors allowed to adjust the housing rents after renovating their houses in Vietnam?

Are lessors allowed to adjust the housing rents after renovating their houses in Vietnam?

Article 129 of the Law on Housing 2014 stipulates lease term and housing rents as follows:

1. The lessor and the lessee may agree about lease term, rents and payment, lump sum or installment payments; if there are any regulations on housing rent regulated by the State, the contracting parties shall comply with regulations.

2. If the lessor renovates the house with consent of the lessee although the lease term does not expire, the lessor is entitled to adjust the housing rents. The new rent shall be agreed by contracting parties; if not, the lessor is entitled to unilaterally terminate the lease agreement and pay compensation to the lessee as prescribed.

3. The lawful rights and interests of the lessor and the lessee shall be protected by the State over the lease term.

Thus, after renovating the house, the lessor is allowed to adjust the housing rents. The new rent shall be agreed by contracting parties in Vietnam.

Is it possible to unilaterally terminate the agreement when the lessor increases the rent after the renovation in Vietnam?

Article 89 of the Law on Housing 2014 provides for maintenance and renovation of houses under lease agreement as follows:

1. The lessor may renovate the house with the consent of the lessee, except for emergency cases or force majeure events; the lessee shall enable the lessor to maintain or renovate the house.

2. The lessor is entitled to adjust the proper rents after finishing the renovation provided that the remaining lease term is shorter than one third of lease term; in case the lessee does not agree with the new rent, he/she entitled to unilaterally terminate the agreement and claim the compensation as prescribed.

3. In case the lessee is required to move to another place for housing maintenance or renovation, the contracting parties shall agree about the temporary place and the rent during the maintenance or renovation period; in case the lessee may manage the accommodation themselves and has paid the rent for entire maintenance or renovation period, the lessor must repay that amount of rent to the lessee. The maintenance or renovation period shall not be included in the term of the housing lease agreement. The lessee is entitled to keep renting the house after finishing the maintenance or renovation.

4. The lessee is entitled to request the lessor to maintain the house, unless the house is damaged caused by the lessee; in case the lessor does not maintain the house, the lessee is entitled to carry out the maintenance provided that he/she notifies the lessor in writing at least 15 days preceding the maintenance's date. The notification must state the maintenance program and funding. The lessor must pay the maintenance funding to the lessee or amortize the rents.

According to this Article, if you do not agree with the lessor's price adjustment after the renovation, you have the right to unilaterally terminate the agreement in Vietnam. However, you must compensate the lessor for damage in accordance with the law if there is an agreement in the rental contract.

Under what circumstances does the lessor have the right to unilaterally terminate the lease agreement in Vietnam?

In Clause 2, Article 132 of the Law on Housing 2014, the lessor is entitled to terminate unilaterally the lease agreement and withdraw the house in one of following cases:

a) The lessor lease out the state-owned houses or social houses ultra vires and not satisfying requirements as prescribed in this Law;

b) The lessee has not paid the rent for 3 months or more without reasonable explanation;

c) The lessee uses the house for improper purposes as agreed in the agreement;

d) The lessee expands, renovates, or demolishes the house under lease agreement without the consent of the homeowner;

dd) The lessee exchanges, lends, sublets the house under lease agreement without consent of the lessor;

e) The lessee still creates disorder or breaches hygiene an environment conditions causing negative effects on activities of the neighborhood although he/she is warned for the third time by the lessor or the chief of neighborhood, the chief of village;

g) Cases prescribed in Clause 2 Article 129 of this Law.

The above are cases where the lessor has the right to unilaterally terminate the lease agreement with the lessee according to the provisions of law in Vietnam.

Best Regards!