Valuable Experiences For Renting An Apartment

At present, renting a house or apartment is a business that attracts much attention because of its low risk, high economic efficiency and stable profit.

However, in order for the rental process to proceed smoothly, you should still be aware of the issues involved, particularly the setting up of contract terms and tenant options to protect your rights and avoid trouble later. Here, Real estate Vietnam will give you some valuable experience from the reality of renting a house.

Experience 1: Refurbish, prepare furniture for the apartment before renting

Formality is always an important factor in giving your first impression, so make sure your apartment is in the best condition, which will give you plenty of rental opportunities. High prices and find the right tenants.

For exterior: Before you rent, you should pay attention to repair each item such as repair the cracks in the wall; paint windows, doors or balconies if needed; Add some decorative plants in front of the door or outside the balcony area.

Make your apartment more beautiful to attract tenants

For interior: new paint back rooms; replace the furniture is too old; Clean up and eliminate unnecessary things to create more space; repairing damaged parts (broken pipes, broken walls, broken bricks, new bulbs). Clean the house clean and remove unpleasant odors.

Make sure the house is airy, clean and well maintained. In addition, you must pay attention to the safety of gas, fire and fire standards. See also: Investment in rental apartments is better than bank savings?

Make your apartment more beautiful to attract tenants

Experience 2: Analyze and set reasonable rental rates

First, you need to base on the factors: location of the apartment (direction, floor), area, interior status, business advantage or representative office or not … to the body Determine the real value of the apartment. Then, you can refer to the rental rates in the market or nearby areas; Expenditures for periodic inspections and upgrades, repair and maintenance of utility equipment as and when required, then set a reasonable rental rate.

The apartment rental market is also entering the competition, so you can offer a softer price than the general level to attract customers and get long-term leases. Not to be discounted to the market because it may have a negative impact on the rental market. Often, homeowners will rely on the inflation index of the currency and commodity price index in the market to adjust the annual rent, so you do not need to worry about the compensation for the loss of the price. initial hire. If you do not know how to set the price, you can look to real estate brokers for specific support and advice.

Experience 3: Contact your broker for assistance

There are many ways to get information about your apartment that are well known, most simply by referrals from friends, relatives and neighbors. Or you can post information on renting apartments on the classifieds, real estate website, note the selection of reputable websites and a large number of visitors to ensure your information is transmitted to correct. object needs. In addition, you can trust experienced real estate companies to find your tenants. Once you have selected the right broker, you should agree on the advertising plan, brokerage schedule and commission rate after the successful transaction. See also: 6 benefits of buying and selling on We.

You need to identify the tenant that you are targeting to facilitate the search.

Experience 4: Choosing the right tenant

You need to identify the tenant that you are targeting to facilitate the search. If you rent a low-cost apartment, it will be suitable for those who are not. If you rent a luxury apartment, newlyweds, good earners or foreigners will be the object you should look for; If you want to rent a shophouse, small businesses or startups will be your priority.

When dealing with people who come to see your home, pay attention to their honesty, ask more questions for more information about them and then pick out the most suitable tenants among them. When renting, you should also clarify the number of people living in order to facilitate the management.

For high-end apartments, you should look for foreigners or people with good income

Experience 5: Be careful when signing the lease

Although renting a flat brings a lot of profit, the landlord must pay attention to tenant regulations and strict tenancy arrangements to avoid the risks.

First, ask the customer to deposit the rent to make sure they have the financial capacity to pay for the monthly rent and that the money can be used to pay the penalty if the tenant breaches the contract. , usually, deposit 1 to 3 months rent. Then notify the tenants of what they are not allowed to do during the tenancy, the rules on the use of the furniture as well as the environmental sanitation, security and compliance issues. Current law.

When making a rental contract, the terms should be detailed and detailed, not to mention how to deal with offenses (such as delayed late payment) in order to easily handle situations that arise. after that. Whether the tenant is a company or an individual, the following should also be noted in the contract:

Make a clear agreement on who will pay the monthly tax.

For high-end apartments, you should look for foreigners or people with good income

Specify the amount of rent in Vietnam dong, in accordance with the law is not negotiable in foreign currency, if not note this you will inadvertently cause the contract to be invalidated.

If the contract is 5 years, the agreement can be renewed for 1 to 2 years, usually 10-15%.

The contract must contain a clear statement: the company or individual is allowed to sublet the room or the whole house or not.

It should be mentioned that the tenant is not allowed to change the house structure without the consent of the landlord.

If the lease is for 6 months or more, the contract must be certified by a notary public to ensure the legality and serve as a basis for settling disputes later.

Experience 6: Tax Considerations

According to the latest regulations on tax, if the annual rental of 100 million or less, the landlord is not subject to value-added tax; with the annual rent of 100 million or more, the landlord must pay the following taxes:

– Excise tax: depending on the time of signing the lease:

In the first 6 months: VND 1 million / year

If the last 6 months (from July 1): only pay 500 thousand

– Value added tax: payable tax amount = turnover x 5%

– Personal income tax: Payable tax amount = [(Turnover x 30%) – Deductions] x Tax rate (%)

However, the landlord and tenant can agree on who directly submits the taxes and must be included in the lease or lease contract. To find out more about the tax rates, you can go to the District Tax Department for detailed instructions.

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