The valuable experience when renting apartments to others

Currently, the rental of houses or apartments is a business direction that attracts a lot of attention because of its low-risk level, high economic efficiency and stable income. However, in order for the lease to proceed smoothly, you should still explore the relevant issues, especially the establishment of contract terms and selecting tenants to protect your rights and Avoid the trouble later. Here, I will give you some valuable experience from reality when renting a house/apartment to others.

Experience 1: Please refurbish, supply full furniture apartments for rent before renting

The form is always an important factor in leaving a first impression, so you must ensure that your apartment is always in the best condition, which will give you many rental opportunities with High prices and find suitable tenants.

For the exterior: Before leasing, you should pay attention to renovate each item such as: repairing cracks on the wall; paint new windows, doors or balconies as needed; Decorate some kinds of ornamental plants in front of or outside the balcony area ….

For the interior: Paint new rooms; replace obsolete furniture items; clean up and remove unnecessary things to create more space; repair if any damage (leaking pipes, wall cracks, broken bricks, replacement of new light bulbs, etc); clean the house clean and remove unpleasant odors.

Make sure the house is airy, the interior is clean and still in good working order. In addition, you must pay attention to the safety of gas, explosion and fire protection standards.

Experience 2: Analyzing and offering reasonable rental prices

The apartment rental market is now entering the fray as well, so you can offer a softer price than the average space to attract customers and obtain long-term leases (however. do not give prices too low compared to the market because it may cause bad consequences to the rental market). Typically, landlords will rely on the currency’s inflation index and the market commodity price index to adjust the annual rent, so you don’t need to worry about the price offsets for the original lease. If you still do not know how to set a price, you can look to real estate brokers for specific support and advice.

Experience 3: Contact the broker for assistance

There are many ways to get information about your apartment to the public, most simply thanks to the recommendation of friends, relatives and neighbors. Or you can post information for renting apartments on classifieds websites, real estate websites, paying attention to selecting reputable websites and having a large number of visitors to make sure your information is transmitted to the right. subjects in need. In addition, you can entrust to experienced real estate companies to find tenants on your behalf. Once you have selected the right broker, you should agree on your advertising plans, brokerage schedule and commission rates after successful trading.

Experience 4: Choose the right tenant

You need to identify the tenants you are targeting to facilitate the search. If you rent a cheap apartment, it will be suitable for those who are still unique or the object of office workers; if you rent a high-class apartment, newlyweds, good-income people or foreigners will be the objects that you should target; If you want to rent a shophouse, then small businesses or startups will be your priority.

When interacting with people who come to see your home, pay attention to their honesty, ask lots of questions for more details about them, and then choose the most suitable tenant out of them. When renting, you should also clearly state the regulations on the number of people to facilitate management.

Experience 5: Be careful when signing a lease

Although the rental of apartments brings a small profit, the landlord must pay attention to the rules for tenants and the strictness of the lease to avoid the risks incurred.

First, ask your customers to make a deposit to make sure they can afford the monthly rent and can use that amount to deduct the fine if the tenant breaches the contract. , usually should deposit 1 – 3 months rent. Then notify tenants of things that they are not allowed to do during the tenancy period, regulations on the use of furniture as well as environmental sanitation, security and order and compliance Current law.

When making a lease, the terms should be specific and detailed, do not forget to specify how to deal with violations (such as late payment of rent) to easily handle arising situations. after that. Whether the tenant is a company or an individual, in the contract, you should keep the following in mind:

  • It is clear who will pay the tax every month.
  • Specify the amount of the rent in Vietnam dong, as prescribed by law, it is not allowed to agree in a foreign currency, if you do not note this you will accidentally cause the contract to be disabled.
  • If you agree to change the rental price, if the contract is 5 years, then after 1-2 years can be renegotiated, usually it will increase by 10-15%.
  • There must be a clause in the contract that states whether the company or individual is allowed to rent out the room or the whole house.
  • It should be mentioned that the tenant must not change the structure of the house without the permission of the landlord.
  • If the lease is for 6 months or more, the contract must be certified by a notary office to ensure the legality and serve as a basis for later dispute settlement.

Experience 6: Notes when paying taxes

According to the latest tax regulations, if the annual rent is 100 million or less, the landlord is not subject to value-added tax; For an annual rent of VND 100 million or more, the owner of the house owner must pay the following taxes:

  • License tax: depends on the time of signing the lease contract:

In the first 6 months: VND 1 million / year
If it is the last 6 months (from July 1): only pay VND 500,000

  • Value-added tax: payable tax amount = turnover x 5%
  • Personal income tax: Payable tax amount = [(Revenue x 30%) – Deductions] x tax rate (%)
  • However, the landlord and tenant can agree who is directly paying the taxes and must be stated in the lease contract or annex. To know more about the tax payable, you can go to the district tax office for detailed instructions.