When you want to set up a business or live at a particular place, you have two options – either to purchase that space or rent it. Depending on the money you have available, your purpose, etc., whether you should rent or buy that space can differ.
If you want to stay in Cambodia for more than a few months, you will need to rent a place. This becomes more important for foreigners. Foreigners can own Cambodia property, but there are some restrictions and laws set. For example, foreigners cannot buy property on the ground floor. This is why many foreigners prefer renting the place rather than buying it.
There can be different ways you might have found a place to rent. It could be via an agent, classified ads, friend/relative, or any other. No matter how you found the place to rent, the vital thing you need to do is background investigation. It will help you figure out whether the place is ideal for renting or not. Hiring a trustworthy property agent like Dragon Real Estate avoids the hassle. With Dragon Real Estate, you do not have to worry about doing background investigation.
Talking about negotiations, in Cambodia, both parties can freely negotiation the period of lease, term, renewal, other legal rights & obligations, rent increase, etc. Cambodian rental law doesn’t regulate the increase in the rent at the renewal of the contract. According to Cambodian rental law, the landlord can inform the tenant if he/she wants to increase the rent within a reasonable time (as specified in the contract). If the negotiation for the contract renewal fails, the agreement may be terminated.
Talking about security deposits, there is no legal restriction on it. Depending on the lease duration, the security deposit could be two months to six months of rent.
A lease contract can be for the long term or short term. After the contract gets expired, it can be renewed by mutual agreement between both parties. After contract expiry, if negotiation between the parties fails, the contract gets expired.
The contract ends if the tenant dies. If the tenant heirs wish to continue, the contract stays active. If the landlord dies, the contract remains in effect.
The lease contract can be oral when it is for the short term (let say less than one year). A written contract is essential if the lease is longer than one year.
Contract termination by any party is not easy when the lease does not contain a termination clause. Hence, the contract must have a termination clause, and the proper prior notice is mentioned for termination of the contract. The landlord can terminate the agreement before the date of expiry in the case when:
- The tenant does not perform obligations,
- The tenant improperly uses the leased property,
- The tenant uses the property in a manner that causes damages to the leased property.
In the contract, clauses for terminating the contract before its expiry date should be mentioned. This way, the tenant will know what can lead to the termination of the contract. Without the clause for terminating the contract before its expiry date, the suffering party will be entitled to remedies depending on the court’s decision.
So, these are the rules for renting a property in Cambodia. Whether you are a Cambodian resident or a foreigner, these are the rules you need to keep in mind before renting the property. If you are looking for a condo, commercial place, or apartment for rent in Cambodia, we can help you.
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