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Rent: Can a tenant and landlord agree to rent in Cambodia?

The parties to a property rental contract can freely negotiate terms such as rental, rental period, rental fees, other legal rights and obligations, the renewal of the property, the rental increase and the terms of the contract termination. villa qatar

Apartments and condominiums in Cambodia

Cambodian laws will not regulate or specify any method of increasing rent for contract renewal. If the landlord wants to increase rent within a reasonable time, the landlord shall inform the tenant (as specified in the contract). The new rent can then be negotiated by both parties. The contract may be terminated if the negotiation fails.

Deposits for Security

Security deposits or rental deposits are not legally restricted. The rental deposit is normal, most frequently from three months to six months, depending on the rental period: short or long term. Deposits of security are rare.

What are the rights of landlords and tenants in Cambodia, especially regarding contract duration and expulsion?

For an undetermined term (while an undetermined lease cannot exceed 12 years), or for a fixed period that can be long-term (15 years) or a short-term lease contract may be entered into. By mutual agreement between the parties, there can be an option to renew.

A lease may be oral, but it must be written if the lease is less than one year longer. Any oral lease is a temporary lease and can be terminated at any time by giving a prior notice that is equal to the period of the rental payment.

If no prior notice is provided by either party or if there is no clause to mention the automatic termination at the end of the contract, the contract is automatically renewed for determined and non-determined contracts.

If a lease agreement does not contain a termination clause, termination by either party is not easy. Cambodian law does not provide for an appropriate period of notification of expulsion at the end of a lease, except in the case of an undetermined contract of lease, which requires a one to two months notice to terminate the lease. It is therefore very important to insert a termination clause in the contract, giving an appropriate advance notice for the contract termination.

Closure by the landlord before the contract's expiry date is possible if:

The tenant fails to fulfill his duties or
The tenant misuses the rental property in a manner that is inconsistent with his normal function or
The tenant uses the property in a way that damages the property leased.

Subleasing is prohibited, unless the contract explicitly permits.

The contract may contain provisions for termination of the contract before its expiry date. In the absence of such a clause, the party concerned shall have the right, in accordance with the lease contract and/or the decision of the court, to remedies and damages.

The contract ends when the tenant dies, unless it is continued by the tenant's heirs. However, if the landlord dies, the contract remains in effect.

The efficacy of the legal system

Disputes are settled by ordinary provincial or municipal courts between landlord and tenant. After filing the complaint, two attempts at reconciliation before the clerk or judge of the handling court are needed before the trial hearing.

There is no clear legislative definition of the timeframe for the trial process.

If a party is unhappy with the judgment of the court, he can appeal to the superior courts.

Legislation

Laws and regulations covering landlords and tenants:

Land law of 30 August 2001; and

Decree-Law No. 38 of 28 October 1988.

Circular 01 of the Residence Management and Land Leased to International Organizations, Foreign Companies and Foreigners of 18 January 1990.

Short history

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Cambodia does not have one law that fully sets out the landlord and tenant's rights and obligations. Two different laws exist (Land Law, dated August 30, 2001, and the Decree-Law No. 38, dated October 28, 1988). There are also rules that allow Cambodians to rent their properties to the international organizations, enterprises and guests (such as Circular No. 01SR of residence administration and land leased to International Organization, Foreign Company or Foreigner on 18 January 1990.

Decree-Law 1988 defines the validity and types of contracts often used and, since 1993 elections, has governed contract law in all transactions.

The land law of 2001 only provides for general provisions. Detailed formalities relating to real estate leases shall be issued by Royal Government of Cambodia Subsectional Decree later on.

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