According to the Law on Real Estate Business 2024, effective from August 1, it is stipulated that: Organizations and individuals doing real estate business must establish a business. However, individuals doing small-scale real estate business will not be required to establish a real estate business but must declare and pay taxes according to the provisions of law. So is it mandatory to establish a business to rent a house? In addition to renting houses, in what form can domestic organizations and individuals do real estate business? Find out now through the article below by Viet My.

1. Is it mandatory to establish a business to rent a house?

Pursuant to Clause 1, Article 9 of the 2023 Law on Real Estate Business, it is stipulated as follows:

Article 9. Conditions for organizations and individuals when doing real estate business
1. Organizations and individuals when doing real estate business must establish an enterprise in accordance with the provisions of the law on enterprises or establish a cooperative or cooperative union in accordance with the provisions of the law on cooperatives, with real estate business lines and occupations (collectively referred to as real estate business enterprises), except for the cases specified in Clauses 3 and 4 of this Article.

In the case of organizations and individuals when doing real estate service business, they must comply with the provisions of Clause 5 of this Article.

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3. Individuals doing small-scale real estate business are not required to establish a real estate business enterprise but must declare and pay taxes in accordance with the provisions of law.

4. Organizations and individuals selling houses, construction works, and construction floor areas in construction works not for business purposes or selling, leasing, or leasing-purchasing houses, construction works, and construction floor areas in construction works below a small scale are not required to comply with the provisions of this Law but must declare and pay taxes in accordance with the provisions of law; in cases where individuals sell or lease-purchase houses, construction works, or construction floor areas in construction works, they must also carry out notarization and certification in accordance with the provisions of Clause 5, Article 44 of this Law.
5. Organizations and individuals conducting real estate services business must establish an enterprise in accordance with the provisions of the law on enterprises or establish a cooperative or cooperative union in accordance with the provisions of the law on cooperatives (collectively referred to as real estate service business enterprises), and must satisfy the conditions prescribed by this Law.
6. The Government shall detail Points b and c, Clause 2 of this Article; and prescribe the determination of small-scale real estate business as prescribed in Clauses 3 and 4 of this Article.

Therefore, organizations and individuals who rent out houses must establish an enterprise in accordance with the provisions of the law on enterprises or establish a cooperative or cooperative union in accordance with the provisions of the law on cooperatives, with real estate business lines and occupations. Except for the following cases:

– Individuals who conduct small-scale real estate business do not have to establish a real estate business enterprise but must declare and pay taxes in accordance with the provisions of law.

– Organizations and individuals selling houses, construction works, and construction floor areas in construction works not for business purposes or selling, leasing, or leasing-purchasing houses, construction works, and construction floor areas in construction works under small scale are not required to comply with the provisions of the Law on Real Estate Business 2023 but must declare and pay taxes in accordance with the provisions of law; in the case of individuals selling or leasing-purchasing houses, construction works, or construction floor areas in construction works, they must also carry out notarization and certification in accordance with regulations.

2. What are the important contents of a house lease contract?

According to Article 121 of the 2014 Housing Law (expired from August 1, 2024), a house lease contract is agreed upon by the parties and must be made in writing, including the following contents:

– Full name of the individual, name of the organization and address of the parties;

– Description of the characteristics of the transacted housing and characteristics of the land plot attached to that housing. For apartment purchase and sale contracts and lease-purchase contracts, the parties must clearly state the common ownership and common use; the area of ​​use under private ownership; the floor area of ​​the apartment; the purpose of use of the common ownership and common use in the apartment building in accordance with the originally approved design purpose;

– Capital contribution value, housing transaction price if the contract has an agreement on price; In case of sale, lease, or lease-purchase of housing where the State has regulations on prices, the parties must comply with such regulations;

– Time limit and method of payment in case of sale, lease, lease-purchase, or transfer of housing purchase and sale contracts;

– Time of house delivery and receipt; housing warranty period in case of purchase or lease-purchase of newly built housing; term of lease, lease-purchase, mortgage, loan, temporary stay, authorization of housing management; term of capital contribution;

– Rights and obligations of the parties;

– Commitments of the parties;

– Other agreements;

– Effective date of the contract;

– Date, month, year of signing the contract;

– Signature and full name of the parties; if it is an organization, it must be stamped (if any) and the position of the signatory must be clearly stated.

3. Regulations on new real estate service business contracts from August 1, 2024

Specifically, Article 44 of the 2023 Law on Real Estate Business stipulates the types of contracts in real estate business, including:

– Contracts for sale/hire-purchase of houses.

– Contracts for lease of houses.

– Contracts for sale/hire-purchase of construction works, the floor area of ​​construction works with the function of serving tourism and accommodation purposes.

– Contracts for lease of construction works, the floor area of ​​construction works with the function of serving tourism and accommodation purposes.

– Contracts for sale/hire-purchase of construction works, the floor area of ​​construction works with the function of serving education, health, sports, culture, office, commercial, service, industrial and mixed-use construction works.

– Contract for leasing construction works, construction floor area in construction works with functions serving educational, medical, sports, cultural, office, commercial, service, industrial purposes and construction works with mixed functions.

– Contract for transferring land use rights with technical infrastructure in real estate projects.

– Contract for leasing/subleasing land use rights with technical infrastructure in real estate projects.

– Contract for transferring the entire real estate project.

– Contract for transferring a part of a real estate project.

– Contract for transferring sale and purchase contracts, lease-purchase contracts for houses, construction works.

The above is all the information related to “mandatory to establish a business to rent a house”. If you have any other questions, please contact Viet My Law and Accounting for the earliest possible response.