Factors to consider for house rental business

Phnom Penh is a place of collective culture, civilization and the largest economic city of Cambodia. This city is a hub to absorb people across the country to work and study. As a result, this leads to higher demand for accommodation. Accommodation services are commercial activities that provide legal communications between landlords and tenants. These intend to ensure the rights and interests and to maintain a stable living environment and public order. Therefore, the National Assembly has passed the Special Lease Law on July 6, 2015 and was promulgated by Royal Decree No. NS / RK / 0715/009 on July 29, 2015. This law aimed at governing the legal relationship between landlords who determine the professional wages and the tenants who would be employees, students, and scholars, that rent the rooms for the purpose of residency. This relationship is a "special hiring agreement".                         This law sets out some special conditions that individuals who wish to rent a room for professional wages should consider:

1. creation of a special lease

In accordance with this law, to obtain legal leverage, the lease agreement must be in writing and certified by the commune chief. The landlord has a duty to carry out the necessary work to obtain confirmation from the commune chief of that particular lease. 2. Special lease term This law stipulates that the special lease must be no less than two years. In case the parties are not defined the contract term or the period of the contract whether it is less than two years or not, it shall be considered to be two years. 3. The rights of landlords and tenants to dissolve special leases. A) The landlord’s right to dissolve a special lease The owner of the rental house has the right to dissolve special leases in the following cases:

• The lessee does not pay the rent twice without acceptable reason
• The tenant uses the renting room out of the tenancy’s purposes
• The lessee intentionally causes any disorder and a serious impact on the living conditions of the neighbored
• The living room is renovated or rebuilt by the authorities

B) The tenant’s right to dissolve a special lease

• The hire holder has the right to dissolve the lease agreement at any time.

4. The ban on wage increases This law prohibits the increasing of wages during special leases.