HCMC Rental Contracts: Legalities, Scam "Red Flags" & Vital Clauses

Renting an apartment in Ho Chi Minh City (HCMC) can be a nightmare for expats if you don’t understand the local laws and market tricks. From “ghost contracts” on Airbnb to hidden rules about taxes and residency, this article exposes the truth to protect you and your wallet.

Below is the legal handbook and the vital clauses that must be included in any HCMC rental contract for foreigners.

1. Scams & Red Flags to Avoid

Answer-first: The rental market in Vietnam is vibrant but full of risks. Be cautious if you encounter the following signs:

The rental market in Vietnam is vibrant but full of risks. Be cautious if you encounter the following signs:

The Airbnb “Bait-and-Switch” Scam

Scammers often post pictures of luxurious apartments at unbelievably low prices on Facebook groups or booking platforms. When you contact them, they use this trick: “Someone just booked this unit, but I have an identical one in the same building.” As a result, you are taken to see a much shabbier apartment.

Absolute Warning: For tenants looking for housing via Airbnb for their first month, fake landlords often ask you to cancel the booking and transfer money directly to their bank account to “avoid platform fees and get a cheaper rate.” The outcome is the scammer disappears with your deposit.

The Fake Landlord

The person renting out the property avoids or refuses to show you the original/notarized copy of the Pink Book (Certificate of Homeownership) and their ID/Passport.

If they are a sub-leaser renting the unit out to you without the actual landlord’s consent, your contract will be completely void when the real landlord shows up and demands the property back.

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Never hand over your original passport to a landlord. They only need a notarized copy and a photo of your valid visa for police registration.

Nguyen Hoang Lam

Senior Legal Advisor, LeaseInVietnam

2. Legal & Tax Blind Spots (That Few Expats Know)

Contracts Priced in USD are VOID

According to the regulations of the State Bank of Vietnam (based on the Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11 and its amendments), all transactions within Vietnam cannot be paid or listed in foreign currency. If your contract says “Rent: $1,000/month”, in the event of a dispute going to court, this contract can be declared void. The price must be listed in VND (Example: 25,000,000 VND).

Tax Obligations (10%)

According to regulations (Circular 40/2021/TT-BTC), if the rental revenue exceeds 100 million VND/year, a 5% Value Added Tax (VAT) and 5% Personal Income Tax (PIT) apply. Many landlords do not pay this and refuse to issue a red invoice.

The Harm: If your company pays your rent and needs to include this as a valid Tax Deduction, a “tax-evading” landlord will cause trouble for your company with the tax authorities. Negotiate clearly: Does this rental price include taxes?

Housing Law (Article 133): Your Rights When the Landlord Sells

A constant worry for renters is: “What happens if the landlord sells the apartment I’m living in?“. Don’t worry. According to Article 133 of the Housing Law (Law No. 65/2014/QH13), when a landlord transfers the property, the new owner must continue to honor the rental contract with you until it expires. You cannot be evicted without cause.

Temporary Residence Registration (Mandatory)

By law (Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam), the landlord or building management must declare temporary residence for foreign guests with the local Ward Police (Form NA9). Red flag: If the landlord refuses to do this (usually to evade taxes), you will face massive problems. Without a temporary residence confirmation, you cannot:

• Extend your Visa.
• Get a Temporary Residence Card (TRC).
• Open a domestic bank account.

Read more: Guide to Temporary Residence Registration for Expats

3. “Vital” Clauses You Must Have in Your Contract

Diplomatic Clause

This is a life-saving privilege exclusively for expats. This clause allows you to terminate the contract early without losing your deposit in force majeure situations:

• You are transferred out of Vietnam by your parent company.
• You lose your job.
• Issues with Visa/Work permit issuance. Note: To activate this clause, you usually have to give 30-60 days’ notice and provide written proof from your HR department.

Pet Clause

Vietnamese law does not prohibit keeping dogs and cats in apartments, but the Building Management Rules are the ultimate authority. If you have a pet, you must check the Building Rules before renting. Additionally, you must require the landlord to include a clause allowing pets in the contract. Otherwise, the building management has the right to force your pet out.

Normal Wear & Tear

The standard deposit in Vietnam is 2 months’ rent. To avoid unfair deductions when moving out, you must clearly define the boundary between natural wear and tear and damage.

• Normal wear & tear (No compensation required): Paint fading over time, tile grout turning yellow, lightbulbs burning out.
• Damage/Misuse (Compensation required): Children drawing on the walls, scorched mattresses, broken window panes.

Pro tip: Do a very thorough Move-in Checklist. Record a video and take pictures of every corner, scratch, and furniture condition on the day you receive the keys, and email them to the landlord for confirmation.

Related Articles:

• How to Verify a Rental Agent Before Transferring a Deposit
• Step-by-Step Guide to Safely Finding a Rental in Vietnam

Conclusion: A rental contract is not just a piece of paper agreeing on a price; it’s your “shield” protecting your rights in a foreign country. Never rush to sign if you haven’t carefully read the clauses regarding taxes, diplomatic terms, and temporary residence. If necessary, hire a legal expert or a reputable agent to accompany you.