Experts push for ban on short-term apartment rentals in Vietnam

Real estate and legal experts are calling for a ban on short-term apartment rentals in residential buildings, arguing that the practice violates Vietnam’s housing laws and creates security, legal, and management challenges.

The 2023 Housing Law explicitly states that apartment buildings are designated for residential purposes and should not serve other functions, according to lawyer Pham Thanh Tuan, a real estate legal expert from the Hanoi Bar Association, who spoke to Tuoi Tre (Youth) newspaper.

Therefore, renting out apartments on a short-term basis does not legally align with the law’s provisions. Consequently, several local governments are considering banning short-term rentals in residential buildings.

Short-term accommodation, Tuan noted, falls under the hotel business, which is subject to stricter fire safety and management standards than residential buildings.

This distinction, he argued, makes banning short-term apartment rentals both reasonable and necessary.

Furthermore, short-term rentals, whether by the day or hour, are classified as lodging services that must meet specific business conditions.

“For that reason, apartment building management boards should prohibit tenants from offering this service,” Tuan said.

Nguyen Quoc Khanh, vice-chairman of the Vietnam Association of Realtors, highlighted the security risks posed by short-term rentals, as an influx of temporary residents makes monitoring difficult. Unlike hotels, apartment complexes lack professional staff to manage check-ins and security.

In high-rise buildings with hundreds or even thousands of apartments, the frequent turnover of short-term tenants makes it hard for local authorities to track temporary residency, potentially leading to security risks.

To address these concerns, Khanh suggested enforcing a new regulation that limits apartment leases to long-term contracts only.

“While waiting for legislative amendments, interim measures should be implemented to restrict short-term rentals,” he said.

A representative from a property management company echoed these concerns, noting that short-term rentals are causing disputes among residents.

Homeowners' leasing out their units to tourists disrupts permanent residents' peace, leading to noise complaints, overcrowding, and a decline in shared facility conditions.

Some short-term tenants, the representative added, show little regard for communal property, accelerating wear and tear on shared infrastructure like elevators, pools, and gyms.

The presence of unfamiliar faces in buildings also raises safety concerns, placing added strain on property management teams.

“In some cases, these disputes have escalated into major confrontations,” the representative said.

Vietnam is not alone in facing challenges with short-term rentals. Many cities worldwide have imposed strict regulations to address their impact on housing prices, tax compliance, and community stability, experts said.

Short-term rentals can drive up property prices, reducing housing availability for long-term residents. Additionally, local authorities struggle to track transactions, leading to potential tax revenue losses.

Despite these concerns, some believe that stricter regulation – rather than an outright ban – may be the best solution.

Nguyen Phuong Hoa, a short-term rental operator in Ho Chi Minh City, Vietnam’s southern hub, suggested that operators register as business entities and pay taxes accordingly.

Hoa also proposed requiring guests to register their stay with local authorities, follow security measures, and comply with building regulations.

“These measures,” she said, “could provide travelers with more accommodation options while maintaining order and security in residential buildings.”

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