What to know about renting in Ho Chi Minh City: as a landlord
Ho Chi Minh City is growing up very fast and expending mostly toward the west with many new buildings on the horizon. It largely has been the result of the social economic factors but also thanks to the impact of tourism and a strong industrial activity.
Moreover, the first line of Ho Chi Minh City’s metro is scheduled for completion by 2020. We do recommend our clients to buy apartments in project along the line going from District 1 to District 9 where the chances will be also high to rent out fast and at a good price.
Every new buildings since 2015 are separated between 30% of units under Foreign title (which can only be buy by foreigners) and 70% of the units under Vietnamese title (which can only be buy by Vietnamese). For more information about that, please have a look on our last article Property investment: Why Vietnam ?
After buying those units, some of the landlords choose to live elsewhere and to rent the unit(s) they previously bought.
There are no more influences from the Foreign and Vietnamese titles when you choose to rent a unit in Ho Chi Minh City. A Vietnamese and a Foreigner can both rent a unit even if it was under Foreign title/Vietnamese title when the landlord bought it.
In this article, you will find some “tips” about what to know before renting a unit in Ho Chi Minh City as a landlord and if you are a future tenant, I invite you to have a look at this following article: What to know about renting an apartment in Ho Chi Minh City: AS A FUTURE TENANT
Your situation: you have a gorgeous apartment in one of the buildings of HCMC and would like to have an additional revenue at the end of each month? Moreover, from a nice and careful tenant? The problem is that you don’t really know how you can find it, how evaluating the rental price of your property, how to manage the taxes, how to draft the tenancy contract…especially if you are not living around here.
This article will help you to answer to all of these questions and after reading it you will know everything about leasing a property in Ho Chi Minh City!
Where and how can I find my first/new tenant?
Through an agency
Like Rex Vietnam, several agencies in Saigon are managing properties that they own or properties owned by Vietnamese or Foreigners who prefers that a professional takes care of it.
The whole service depends on what options you are selecting when you choose the company you want to work with. And the result depends on the working quality of the company you choose and the range of your property. For example, Rex Vietnam is more specialized in the middle-high budget and reach this target through a high quality of services and a new-projects specialization, mostly in Thao Dien and Binh Thanh districts (Projects: Gateway Thao Dien, The Nassim, City Garden…).
With Rex Vietnam:
- Once we’ve received your request: we are contacting you to know more details about your property (project’s name, floor, number of bedrooms, area, the rental amount you are expecting…)
- We are sending you our Leasing Mandate which explains our terms and conditions on how we can manage your property to find it a suitable tenant.
- Once we’ve both signed it, we will start to advertise your apartment. Once we found the tenant, we manage the tenancy contract but also the property during the whole duration of the lease and we renew the process at the end of the lease.
You should be careful:
- On the “fake agent”. Indeed, there is a strong turnover in Ho Chi Minh City, every one can become a real estate agent.
- On the companies who wants to create volume more than high quality services. They will attract you with false advertise, low prices, but maybe take a long time to find you a new tenant or don’t even manage the property during the period of leasing.
You can advertise by yourself your apartment on the social medias such as Facebook for example. But it will be harder and slower than going through an agency. In fact, there many posts for apartments on the expats/Vietnamese Facebook groups, so yours can quickly be absorbed.
You should be careful:
- On the “not reliable tenant”. With Facebook : you can find everything, including dishonest people who can sometimes waste your time. Prefer meet directly “professional” tenant who are really interested in your property.
- On the person who wants to sub-lease your property.
How can I determine the rental price of my property?
First, when you buy a property you are usually asking about the rental yield duration. In HCMC, the rental prices are fluctuating, due to the changes of the laws and the number of projects. But this can also differ under the decisions of the agents.
In the case of Rex Vietnam, our agents can help you to find the right rental amount in benchmarking the market and see how the prices are fluctuating. Property value on the market depends on the view, the floor, the area, the facilities , the location…
How can I manage the taxes payment?
Rex Vietnam provides an option to take care of it for you. Or you can manage it by yourself in going to the tax office. But it could be longer, especially if you are a foreigner and don’t clearly understand the taxes in Vietnam.
How can I draft the tenancy contract? What should it include?
The tenancy contract must include:
- Information about the landlord, information about the tenant
- The premises: purpose of use, lease term
- Rent and deposit conditions: amount, conditions of payment. For example, the tenant will have to pay you every 5th of each month)
- Responsibility of the landlord
- Responsibility of the tenant
Rex Vietnam can help you to manage it ! Our agency takes care of everything once you had sign the leasing mandate. Then, it allows us to advertise your apartment and manage your property as best as possible.
We already have our own model of tenancy contract, and we will manage the agreement and signature of both parties.
Don’t hesitate to contact us at firstname.lastname@example.org !