Things to do before renting out your home

Learn about the tenant

Before deciding to rent, find out carefully about the person you want to rent the house to. This will help you avoid risks, fraud or unnecessary conflicts.

Normally, you should choose customers who are individuals or families with stable jobs and clear backgrounds. In addition, depending on your personal judgment, you will be able to evaluate the customer's reliability.

Make an appointment with your client, discuss and talk clearly about the purpose of renting the house. You can ask about some terms, agreements and related life and work issues.

Discuss terms, regulations and prices carefully.

First, you need to base on the factors: location of the house/apartment (direction, floor), area, interior condition, whether it has advantages in terms of business or representative office establishment or not... to determine the real value of the apartment/house. Then, you can refer to the rental price on the market or neighboring areas; estimate the costs of periodic house inspection and upgrade and repair, maintenance of utility equipment when needed, then determine a reasonable rental price.

The current rental market is also entering the competition, so you can offer a lower price than the general level to attract customers and get long-term rental contracts. However, do not offer a price that is too low compared to the market because it can cause negative consequences for the market. Normally, the landlord will base on the inflation index of the currency and the price index of goods on the market to adjust the annual rental price, so you do not need to worry about the loss when lowering the initial rental price. If you still do not know how to price, you can go to real estate brokerage companies for specific support and advice.

Many landlords share the difficulties in discussing and agreeing on terms with tenants. Many conflicts occur between the two parties. Therefore, you should be well prepared, based on legal knowledge and experience in renting.

The information that both parties need to agree on includes the minimum term, monthly rent, payment method, payment term. In addition, there are also conditions and regulations that must be followed when renting a house.

Clear communication and agreement in advance will limit unnecessary violations, disputes and conflicts later.

Things to do before renting a house - 1 — Before deciding to rent out a house, the landlord needs to do many things to avoid conflicts and disputes that may arise later. (Illustration photo)

Transaction process

When renting a house, you need to pay attention to the regulations for tenants and the strictness of the rental contract to be able to rent long-term as well as avoid risks that may arise. First, you need to ask customers to deposit rent for a certain period of time (from 1-3 months) to ensure that they have enough financial capacity to pay the monthly rent. This amount can also be used to deduct the fine if the tenant violates the contract.

Next, you need to inform the tenants about the regulations on living, using furniture and issues of environmental hygiene, security and order as well as compliance with current laws. Clear notices will help tenants determine their rights and obligations.

When signing a rental contract, the terms should be written in a very specific and detailed manner, especially clearly stating how to handle possible violations so that any situations that may arise can be easily handled. And if the rental is for 6 months or more, the contract must be certified by a notary public to ensure its legality and can serve as a basis for resolving future disputes. Along with that, you need to note the following details:

Clearly state the rent amount in Vietnamese Dong because according to the law, it is not allowed to agree in foreign currency. If you do not pay attention to this, the contract will be invalid.

Agree clearly who will pay taxes and monthly service fees

Agreement on changing rental price according to time period, if the contract is for 5 years, after 1-2 years it can be renegotiated, usually it will increase by 10 to 15%.

The contract should clearly state whether the tenant is allowed to sublet the room or the entire house. You should also mention that the tenant is not allowed to make any structural changes to the house without the landlord’s consent.

Make and sign the lease contract

In real estate business in general and leasing in particular, there is more than just verbal agreement. We need to have evidence and authentic documents about the commitments of both parties.

In other words, it is necessary to prepare and sign a rental contract. This document contains full information about the lessor, the lessee and the binding terms.

Both parties need to fulfill their obligations and commitments. Of course, they will also receive the benefits as agreed.

In case of disputes or conflicts, the tenant, the landlord and the court will rely on the contract to resolve.

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