While subletting has become increasingly popular among expatriate lessees, many are not well-acquainted with Vietnamese law regarding the matter and risk sliding towards illegality. Similar to western countries, lessees cannot sublet their apartment as they see fit. Although rare, judicial proceedings can be instituted against anyone not abiding by the provision.
Subleasing is the action by which a tenant, in turn, decides to partially or fully rent out the lodging their landlord rented out to them and earn from it.
Should the landlord agree to it, they will then have to put it in writing. The new lease agreement should detail and specify the nature of the added sublet clauses.
The rent ought not to surpass the rate initially agreed upon by the original lessee and landlord.
. For the sublessor:
Being cosigned by the tenant and sublessee, a sublet agreement leaves the landlord out. In other terms, the tenant is to be held legally accountable for the sublessee’s shortcomings, whether it is unpaid rent or damages to the property.
. For the sublessee:
Should the apartment require repair work, the sublessee is to address the issue to the tenant. In turn, the latter is to relay the information to the landlord: cause of potentially interminable delays.
Another risk lies in the fact that both the lease and sublease agreements are interdependent. Whenever the former expires, and unless renewed, the sublessee is bound to pack up.
Without a contractual bond to the landlord, not only has the sublessee no legal protection but the landlord cannot be liable to prosecution, should problems arise.
Alike the prescribed form detailed in article 121 of law No. 65/2014/QH13 (see « Your rights and obligations as a lessee »), the sublet agreement is to feature, among other elements: the term of the sublease, the termination provisions, the term and method of payment, the safety deposit reimbursement conditions, as well as each party’s obligations.
1° Under article 132 dd/ of law No. 65/2014/QH13, should a lessee sublease property without contractual approval, the landlord can freely terminate the contract. They are rightfully entitled to either refuse a subletting proposal or put an end to the existing contract if wronged.
Subletting can prove particularly problematic for landlords, requiring the tenant to provide further convincing guarantees of the trustworthiness and solvency of the sublessee.
2° Furthermore, and according to article 33 of law No. 47/2014/QH13, any new tenant’s residency is to be registered at the nearest ward police station within 12 hours upon arrival.
Part of our job, at Realty Quest Thao Dien, is to provide tenancy management services. Subleasing agreements settlement as well as landlord communications as a whole is what we can help you with. Do not hesitate to ask for assistance!