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Does a tenant have the right to unilaterally terminate the lease when the new landlord increases the rent?

This article answers questions about a tenant’s right to unilaterally terminate a lease when a new landlord increases the rent. It provides information about the legal provisions that protect tenants’ rights, helping them understand when they can legally terminate a lease.

Pursuant to Article 30 of the 2014 Law on Real Estate Business, the provisions on unilateral termination of performance of house and construction lease contracts are as follows:

“1. The lessor has the right to unilaterally terminate the performance of the house or construction lease contract when the lessee commits one of the following acts:

a) Payment of rent for houses or construction works is 3 months or more late compared to the payment date stated in the contract without the approval of the lessor;

b) Using houses and construction works for purposes other than those for which they were rented;

c) Intentionally causing serious damage to rented houses or construction works;

d) Repairing, renovating, upgrading, exchanging or subleasing a rented house or construction without agreement in the contract or without the written consent of the lessor.

2. The lessee has the right to unilaterally terminate the performance of the house or construction lease contract when the lessor commits one of the following acts:

a) Not repairing the house or construction when the house or construction is not safe for use or causes damage to the lessee;

b) Unreasonable increase in rental prices and construction works;

c) The right to use a house or construction work is restricted due to the interests of a third party.

3. The party unilaterally terminating the performance of the house or construction lease contract must notify the other party 01 month in advance unless otherwise agreed.

According to the above provisions, the tenant has the right to unilaterally terminate the lease contract when the lessor commits one of the following acts:

- Do not repair the house or construction when the house or construction is not safe for use or causes damage to the tenant;

- Unreasonable increase in rent and construction prices;

- The right to use houses and construction works is restricted due to the interests of third parties.

Thus, the tenant has the right to unilaterally terminate the lease contract when proving that the new landlord has unreasonably increased the rent.

Note: The tenant unilaterally terminating the lease contract must notify the other party 1 month in advance unless otherwise agreed.