
Buildings in Ho Chi Minh City, October 2024. Photo by VnExpress/Quynh Tran
The Ministry of Construction is reviewing regulations that prohibit the short-term lease of apartments to ensure they do not fall foul of laws.
It said that a recent memo from the Ministry of Justice has raised concerns about inconsistencies surrounding the ban on Airbnb-like lease.
The justice ministry had pointed out that while the Housing Law prohibits such leases, there are no regulations defining “short-term rentals” or explicitly banning owners from renting out their homes.
“It is unreasonable that homeowners are not prohibited from renting out for the long term but short-term rentals are banned.
“If they are not living in the property, they have the right to rent it out, which is one of the property rights of owners as stipulated in the Civil Code.”
So prohibiting Airbnb-style rentals lacks a legal foundation, it warned.
In the event, it suggested regulation rather than a ban, pointing out that homeowners could be asked to register their rental business, ensure compliance with security and fire safety standards and ensure neighbors are not impacted by their tenants’ activities.
In March HCMC banned the use of apartments for non-residential purposes, including shot-term leases like on Airbnb.
There have been conflicts between short-term tenants and other occupants of apartment towers, who complain about guests making noise late at night and lacking cleanliness.
Many residents are also upset at having to share facilities such as elevators, gyms and pools with renters, some of whom also indulge in illegal activities such as gambling and drug use.
Le Hoang Chau, chairman of the HCMC Estate Association, criticized the city’s blanket ban and suggested management solutions instead.
“If managed well, this could be a form of accommodation that promotes tourism and generates tax revenues for the city.”
A VnExpress study in HCMC found nearly 10,000 apartments being used for short-term lease and generating monthly incomes of VND15-60 million for owners.