Can I unilaterally terminate the lease agreement in Vietnam? What are regulations on maintenance and renovation of houses under lease agreement in Vietnam?

Can I unilaterally terminate the lease agreement in Vietnam?

I have signed a contract to rent a house for a family in Ho Chi Minh City, the lease period is 2 years, the monthly fixed cost is 2,800,000 VND, the water and electricity bill depending on my use and do not change the rent, electricity price, water price during the lease period. But recently, the owner of the house used the reason that the electricity and gas bills increased to increase the rent to 3,000,000 VND, and increase the price of electricity and water, and informed me. But I don't agree with this. Can I unilaterally terminate the signed lease agreement without the lessor's consent?

Reply:

According to the provisions of the Civil Code 2015, contract for lease of property means an agreement between parties whereby a lessor delivers property to a lessee for use during a fixed term and the lessee is required to pay rent.

In which, lease contracts of houses or lease contracts of houses for other purposes shall comply with this Code, the Law on Housing and relevant laws.

According to the provisions of Clause 3, Article 132 of the Law on Housing 2014, the lessee has right to unilaterally terminate the performance of the house lease contract when the lessor commits one of the following acts:

3. The lessee is entitled to terminate unilaterally the lease agreement:

a) The lessor does not repair the house when it is seriously damaged;

b) The lessor increases the rents unreasonably or increases the rents without notification to the lessee;

c) The right to enjoyment of the house is restricted by interests of a third party.

According to the information you provide to us, you have signed a contract to lease a house with a family in Ho Chi Minh City, Vietnam, the rental period under the contract is 2 years, the monthly fixed rent is 2,800,000 VND, water and electricity bills will depend on your use and do not change rent, electricity and water prices during the rental period.

Therefore: You and the lessor are obligated to comply with the agreements entered into in the valid lease contract. That is, the lessor is not allowed to increase the rent, electricity and water charges during the 2-year lease term under the contract, unless the lessee agrees or the parties agree otherwise in the contract.

But recently, the owner of the house used the reason for the increase in electricity and gas bills to increase the rent to 3,000,000 VND, also increase the price of electricity and water, and notify you, while the lease contract has been agreed with the tenant. The above amounts will be fixed for 2 years of lease under the contract without change.

Therefore: The act of the innkeeper arbitrarily increasing the house rent to VND 3,000,000, increasing the price of electricity and water is a violation of the signed rental contract. Therefore, you have the right to unilaterally terminate the tenancy contract in accordance with Clause 3, Article 132 of the Law on Housing 2014 in Vietnam (unreasonable increase in rent).

However, you must notify the lessor at least 30 days in advance, unless otherwise agreed by the parties; If you violate the provisions of this Clause and cause damage, you must compensate in accordance with the law in Vietnam.

What are regulations on maintenance and renovation of houses under lease agreement in Vietnam?

I have a question and would like to ask you to answer as follows: What are regulations on maintenance and renovation of houses under lease agreement in Vietnam? Hope to get a response soon. Sincerely thank!

Reply:

The maintenance and renovation of houses is defined by law as follows:

- Housing maintenance means the maintenance of housing on schedule and repair upon damages of housing for housing quality assurance.

- Housing renovation means the process of improving quality, expanding area, restructuring of existing housing area.

According to Article 89 of the Law on Housing 2014, there are regulations on 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.

Lessor reclaims house before lease period expires in Vietnam

Hello! I have the following problem that I hope you can answer. I have rented a whole house with frontage for living and doing business, the lease term is 3 years. However, after 1 year of business, the lessor came and demanded to take back the house, not to rent it anymore. May I ask if the lessor can take back the house? And do we have the right to claim compensation, because I am doing business very good, if it is taken back, it will affect my family's life. I sincerely thank!

Reply:

According to Clause 1, Clause 2, Article 132 of the Law on Housing 2014, the lessor unilaterally terminates the house lease contract as follows:

1. During the lease term, the lessor may not unilaterally terminate the lease agreement and withdraw the house, except for cases prescribed in Clause 2 of this Article.

2. 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.

Thus, in your case, you signed a 3-year lease, but only 1 year later, the lessor has reclaimed it and did not give any reasonable reason or did not point out your fault. If the lessor wants to terminate the contract, the lessor will have to compensate you for terminating the rental agreement before the term agreed in the contract. If there is no agreement in the tenancy agreement, the lessor is liable for damages based on the damages you can prove. If the lessor does not agree to compensate, you can file a lawsuit in the People's Court of the district where the lessor lives to ensure your rights.

Best regards!