Brian Jeffrey
On February 27, the People’s Committee of HCM City issued Decision 26, which regulates apartment management and usage, stipulating that apartments can only be rented for residential purposes and that short-term rentals, such as those for a day or even an hour, are strictly forbidden.
While many residents of apartments welcomed this regulation, it drew criticism from property owners engaged in the rental market.
The Ministry of Construction (MOC)’s Housing and Real Estate Market Management Agency has communicated with the Agency for Document Review and Administrative Violation Management under the Ministry of Justice regarding the legalities of housing.
Concerning short-term rentals in apartments using the Airbnb model, the agency clarified that the MOC has addressed queries from the public and the HCM City National Assembly Delegation.
The Ministry indicated that any rental agreement, including those through Airbnb, must comply with the Housing Law 2023 requirements, necessitating a formal contract as outlined. If a property is utilized for tourism purposes, its owner must adhere to tourism regulations.
Previously, the Document Review and Administrative Violation Management Agency compiled various viewpoints, challenges, and suggestions from different stakeholders.
Under the Housing Law 2023, as well as supporting documents, and the MOC’s reference 4757, using apartments for purposes other than residential living is expressly forbidden.
Renting an apartment on Airbnb implies that tenants are utilizing these spaces for living purposes. There are currently no established guidelines on what constitutes a ‘short-term rental’ nor restrictions preventing owners from renting out their units.
In reality, property owners can lease their apartments for extended residential use, making it inconsistent to prohibit short-term rentals via platforms like Airbnb. Owners who do not reside in their properties are entitled to rent them out, aligning with their rights under the Civil Code.
One major concern driving the government’s stance against short-term rentals is the potential disruption they may cause to the daily lives of long-term residents within the same buildings.
Experts argue that instead of an outright ban, regulatory measures should be introduced. For instance, property owners could be mandated to register their rental activities, maintain safety standards, and ensure minimal disruption to their neighbors.
The report advocates for the establishment of clear legal frameworks to regulate short-term rental practices in apartments. Should the ban remain in place, authorities could implement penalties for those who violate these rules.
The Housing and Real Estate Market Management Agency has stated it will present these matters to the relevant authorities for timely revisions.
Le Hoang Chau, Chair of the HCM City Real Estate Association (HOREA), mentioned that the association is urging the MOC to revise certain aspects of the 2023 Housing Law, Decree 95/2024, and Circular 05/2024.
According to initial data from HoREA, there are 8,740 apartments in HCM City across 24 developments that are currently rented out on a short-term basis through Airbnb.
