Short-term accommodation boom in apartments and management solutions

Bustling short-term apartment tenants

According to Nguoi Lao Dong, in the context of the difficult real estate market over the past year, the rental apartment segment in Ho Chi Minh City and other big cities is considered to be less affected. In particular, the short-term apartment rental service under the Airbnb model (a form of sharing economy in accommodation activities) is quite bustling thanks to the increasing number of tourists.

Just go to social networks and type in the keyword "rent an Airbnb apartment" or access Airbnb and similar applications, renters can easily find many apartments for rent in the center of Ho Chi Minh City such as The Metropole Thu Thiem (Thu Duc City), The Goldview (District 4), Vinhomes Central Park (Binh Thanh District)... with an average price of 1.3-1.4 million VND/night.

At Vinhomes Central Park, depending on weekdays or weekends, 1-bedroom or 3-bedroom apartments will have different rental prices. Specifically, a 1-bedroom apartment here has an average rental price of 900,000 VND to 1.1 million VND/night; a 2-bedroom apartment from 1.2-1.4 million VND/night; a 3-bedroom apartment from 1.5-1.6 million VND/night.

However, this service has recently received strong reactions from residents in apartment buildings because it affects their lives and benefits. At the Millenium Masteri apartment complex (District 4, Ho Chi Minh City), many households are upset because of the noisy and disorderly situation when guests frequently come and go regardless of the time, causing overload of elevators, entertainment areas, swimming pools, gyms... during rush hours or weekends.

Real Estate - Short-term accommodation boom in apartments and management solutions — Recently, the Ho Chi Minh City market has recorded an increase in the number of strangers invited by legal residents to stay in apartment buildings. Illustrative photo from the internet

According to the management board of this apartment building, the fact that some people provide Airbnb services has disrupted the lives of residents. In October 2023 alone, the number of visitors and overnight stays was nearly 1,300 people, and more than 78% of them were foreign guests. The management board recorded 4 incidents of insecurity and disorder, mainly due to tenants not registering their information with the building management board.

According to Nhip Song Thi Truong , recently, the Ho Chi Minh City market has recorded an increase in the number of strangers invited by legal residents to stay in apartment buildings in the central areas of Ho Chi Minh City such as District 1, District 3, District 4 and Binh Thanh.

Ms. Tran Minh Ai, Senior Director of Savills HCMC Real Estate Management Department, discussed this issue.

According to Ms. Ai, recently, the situation of strangers being invited by legal residents to stay in buildings has shown signs of a sudden increase in apartment buildings in District 4. Legally, the management unit has no tools or authority to identify guests coming to the building as guests of short-term accommodation services. The news on the platforms also never clearly states the apartment number. The procedure for temporary residence registration is carried out directly by guests through the public administration management application.

According to the Housing Law, it is a violation for apartment owners to rent out their houses or rooms to tourists for short-term use as tourist accommodation. However, in the context of economic difficulties, many apartment owners still find ways to "evade" existing State regulations as well as the management of competent authorities.

Need a management mechanism for rental apartment business

According to VTV , instead of operating accommodation at hotels, motels, with signs, registered with authorities... apartment rentals are often transacted through online applications. Or transactions are conducted directly between the tenant and the landlord. This way of operating has many potential risks.

According to Lawyer Ha Hai - Ho Chi Minh City Bar Association, those who want to rent apartments short-term are not prohibited by law, but must comply with legal regulations.

"Apartment owners who want to rent out can do so, the law allows them to do so. They just need to register as individual business households. If the competent authority finds that they satisfy the conditions prescribed by law, they will grant a license, then you have the right to rent out," said Lawyer Ha Hai.

According to the opinion of apartment residents, they do not interfere with the business of any individual or organization, however, there needs to be strict management from the authorities to avoid the emergence of many unsafe risks.

According to Mr. Le Truong Son - Deputy Manager of Millennium Apartment Building, District 4, Ho Chi Minh City: "This is essentially an overnight accommodation model like a motel or hotel. Which apartment building is allowed, which apartment building is not allowed, also needs the management of a number of ministries and departments to coordinate and manage this service well."

According to the Ho Chi Minh City Real Estate Association, it is necessary to add to the Draft Law on Housing (amended) a regulation that if the owner wants to use the apartment for short-term tourist accommodation, he/she must register the business and be responsible for managing the tenants according to the apartment building regulations, thereby ensuring that the lives of apartment residents are not affected.

Dao Vu (T/h)

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