There are different types of residential properties to choose from in Cambodia – high/low rise apartments/condominiums, landed houses and flat houses. Rental prices vary according to location, on type of property, size, interior furnishing and other attributes. Whichever type of property you choose, you will typically follow a similar process for renting and signing the rental lease agreement.
Typical Rental Lease Agreement Terms
Term of Lease:
The lease period is usually 6 months onwards with or without an option to renew. Rental negotiation also correlates with the term of tenancy you are willing to commit; the longer the tenure, the more discount landlords are willing to provide.
Rental Payment:
Rental normally includes fittings and fixtures and maintenance fees but excludes utility bills for water and electricity. Most serviced apartments are equipped with internet and cable TV, but some landlords provide it at an additional charge. Rentals are payable monthly in advance.
Security Deposit:
The security deposit required by the landlord will depend on the length of the lease period and the type of the lease (i.e. a Company Lease or Personal Lease). A security deposit equivalent to 1 to 2 months of the monthly rental is the norm and is payable in full on signing the Tenancy Agreement. It is refundable without interest at the end of the tenancy subject to the tenant’s compliance with the terms and conditions of the lease. The landlord reserves the right to deduct from the deposit all costs and expenses if the tenant breaches any of the terms in the Tenancy Agreement. Tenancy Agreements are generally prepared in Khmer and English. However, in a dispute, the Khmer version will be prevalent.
Legal Fees:
Unless the landlord insist on having a solicitor prepare the Tenancy Agreement whereby the Tenant has to bear such legal fees and other incidental costs for the Agreement, usually, the Tenancy Agreement is prepared by the landlord or housing agent at no charge.
Tax on Rental:
The tax rate on the property rental is equalised at 10% of the gross rental as written in a contract or an agreement with lessees. This is payable to the General Department of Taxation of Ministry of Economy and Finance. However, taxes are only collected from the proprietors or landlords.
The Rental Lease Process
There are several steps in the search for rental accommodation in Cambodia:
1. Prequalification
This is the preliminary stage; we will have an initial discussion to better understand your needs and requirements.
2. Viewing/Inspection
Knight Frank will take you to view properties that we have shortlisted which meet your requirements. From the inspections, Knight Frank will gain a greater understanding of your likes and dislikes, and will recommend further viewings on these findings.
3. Negotiation
Once a property has been chosen, should you have further requests from the landlord, Knight Frank will negotiate on your behalf.
4. Booking
Once an agreement is reached by both the landlord and you (tenant), a one-month ‘booking’ deposit will be payable by the tenant to Knight Frank / the landlord.
5. Tenancy Agreement
Knight Frank will advise on your rental lease agreement but you should seek legal advice if unsure.
6. Utilities
Some serviced apartments charge a fixed rate for utility usage (electricity and water). For apartments charging according to tenant’s usage, both the landlord and tenant will confirm the meter reading at the beginning of the tenancy. Most serviced apartments charge electricity at a rate of USD$0.25 to USD$0.30 per kilowatt. Water is typically USD$5 to USD$10 monthly.
7. Telephone and Internet
Telecom Cambodia is one of the providers of fixed line, national and international telecommunications services in Cambodia. It is also one of the internet service providers, should the apartment you chose not be equipped with internet. Other providers included Metfone, Cellcard, Smart.
8. Handover
Depending on the tenant’s requirements this process can take as little as a week.
Please contact our professional team of real estate agents at +855 23 966 878 or enquiry@kh.knightfrank.com if you need any advice on your rental lease agreement in Cambodia.