For expats in Hanoi or any other places, the biggest expense is the rental fee for their accommodation. That’s why many clients are curious about the factors affecting housing rental fee in Vietnamese Capital. We here list some factors that have influences the rentals to give you better ideas on how you spend your money.
Many people may feel strange and confused to find that the housing rental fee may be so different for the same type of property shown by different agents, on many websites. This might leave people some questions about whose quotation is correct, and even after move-in, they may find their neighbor’s rent is lower than theirs. Here are some points to be considered when judging the rental prices.
Some landlords are very zealous to start renting out their properties and getting returns on their property investments. Meanwhile, others might wait only for an “ideal” tenant paying outstanding rent and be content just to watch the property price increase. They keep the property in good condition so that they would not pay a huge amount to fix broken things after the check-out. That amount is even higher than the return in 1 year. Every owner will have different expectations and charactor. Some of them are reasonable and some not.
In Hanoi district, serviced apartments rental is almost an service industry. Hence, owners they are professional and experienced in giving quoatation and in negoatiation. For landlords of houses & villas for rent in Hanoi, tenants shall work through a real estate agency.
Compound/Property location plays a very important role in fixing the housing rental fee. If the compounds are in downtown such as: Hoan Kiem district & Ba Dinh district, the the price is usually higher. In some compounds, the rental fee is high because it comes with high quaity infrastructure, good service, many amenities & nice location.
III. Floor Level & Lease term
Higher floors usually have better views of the city and more natural light, so the price is usually a bit more expensive. In serviced apartment buildings, normally 5th floor’s rent will be 50$ higher than the 4th floor.
Rental price is always higher for a short term lease. In Vietnam, 1 year lease or more is considered a long term lease.
IV. Property condition & Inclusive packages.
If the property has good quality furniture and decoration, with good brand appliances, or with a garden (for villas), the rental will be higher. This is understandable.
When the tenant like the apartment, they can express their requirements before decide to take it. Some want more furniture, some want the owners to take away some furniture. The price will be changed in this situation.
Normally the rental package can include certain personal requirements, including management fee, tax, club membership fee, internet, TV cable, wate,r parking fee, etc. The more personal requirements from tenants, the higher the rent will be.
VII. The Rental Market Changes quite frequently
Landlords may increase or decrease the rental when it comes to renewing the lease given the market status at the time. But the rental fee in Hanoi tends to increase because more and more foreigners comes to Hanoi every year. Our property consultants will also try to bargain the price with the landlord to save the cost for clients.
There are different types of properties on the market for rent: Villas, serviced apartments, apartments etc. Different types of properties have different target customers, and if the demands of the target customers are not what were expected, prices will be easier to negotiate. In regards to the number of expats in Vietnam, the leasing market has a peak season (usually around March to October, where more expats relocatd to Vietnam) and low season(usually around November to February, where fewer relocate), usually the rental level is higher in peak seasons as there is more demand from the market.
CONTACT US TO HAVE THE BEST ADVICE & NEGOTIATION.