Ho Chi Minh City bans tourist accommodation rentals in apartments

On February 27, 2025, Ho Chi Minh City People's Committee issued Decision No.26/2025/QD-UBND on management and use of apartment buildings in the city.

 

Specifically, this regulation regulates the management and use of apartment buildings invested in and built for residential purposes and apartment buildings with mixed-use purposes, multi-storey houses with many apartments according to the provisions of Housing Law No. 27/2023/QH15.

 

Accordingly, Ho Chi Minh City stipulates that only tourist apartment projects are allowed to operate for short-term rental (short-term rental, by day, hour, airbnb...), apartments for living are not allowed to do this type of business. Ho Chi Minh City People's Committee stipulates that only projects built for mixed-use purposes (tourist apartments) are allowed to operate for tourist accommodation rental. Organizations and individuals operating in tourist accommodation services must meet the conditions and regulations on conditional investment and business sectors and professions, and at the same time register temporary residence for tenants according to current laws.

 

The above regulation of Ho Chi Minh City is considered necessary to more strictly manage tourism accommodation rental activities, returning the living environment to residents in apartments. This is also consistent with the provisions of the Housing Law 2023 in Clause 8, Article 3, which prohibits the use of apartments for non-residential purposes, effective from August 1, 2024.

 

Since its first appearance in Vietnam in 2015, the short-term apartment rental model under the Airbnb model has quickly become the focus of the current rental apartment investment segment. The number of apartments for rent in this form has increased more than 40 times compared to the time of launch.

 

According to brokers, the Airbnb business model is a business model based on sharing available housing, rooms, and homestays that the homeowner does not live in (or does not have a need to live in), and wants to rent to others to earn extra income. The average revenue of a short-term rental apartment in Ho Chi Minh City during peak season ranges from 9 to 12 million VND/month, equivalent to a long-term contract.

 

Because of the model's potential, investors have poured billions of dong into its implementation, with occupancy rates always reaching over 70-80%. However, in recent years, pressure from management and residents in the buildings has grown, causing investors' business operations to be significantly affected.

 


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These lease contracts do not require notarization or certification, but will serve as a basis for determining the responsibilities of both parties. In case the tenant uses the apartment for other purposes (not for living), he/she will be held responsible. In addition, the apartment management board and the operating management unit will also rely on the lease contract to require the tenant to comply with the rules and regulations of management and use of the apartment building, ensure security and order, and avoid affecting residents living in the project.

 

The 2023 Housing Law, effective from August 1, 2024, also prohibits the use of apartments for purposes other than residence. Article 6 of the 2014 Housing Law also prohibits the use of apartments for purposes other than residence. Accordingly, the activity of renting apartments by the day or hour is an accommodation activity, similar to hotel activities and requires a license for accommodation services. When operating this service, it is necessary to issue invoices, declare and pay taxes, and ensure fire prevention and fighting and security. In addition, guests must register for temporary residence with local authorities.

 

 

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A notice board prohibiting short-term stays at an apartment building in District 4, Ho Chi Minh City.

 

However, in reality, many apartment projects in Ho Chi Minh City, although prohibiting homeowners from renting out apartments for business purposes, especially the Airbnb model, are very difficult to control. This leads to instability and conflicts between residents and rental businesses, causing frustration, leading to loss of security and order and loss of fire safety.

 

The recent regulations of Ho Chi Minh City are considered necessary to more strictly manage tourism accommodation rental activities, returning the living environment to residents in apartment buildings.

 

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