HCM City reopens short-term apartment rental market under new rules

HCM CITY — HCM City has officially reopened the door to short-term apartment rentals under a new regulatory framework, a move expected to revive part of the urban accommodation market while raising fresh concerns over security, building management and residents’ rights.Under Decision 19 issued by the municipal authorities, apartment owners may provide short-term accommodation services through platforms such as Airbnb if they comply with requirements on lawful use purposes, business registration, tax obligations and temporary residence declarations.The new policy comes after more than a year of restrictions that significantly reduced short-term rental activity in many apartment projects across the city.Property owners and operators welcomed the decision, saying the previous tightening measures had left many units vacant and caused substantial financial pressure.“The market was almost frozen for us over the past year,” said Lê Thị Thu Trang, 37, who manages several short-term rental apartments in central HCM City.“Some apartments remained empty for months because they could not attract long-term tenants, while operating costs and bank interest payments continued. The new framework gives us confidence to return to the market legally and transparently,” she said.Võ Duy Phương, 42, an investor operating two short-term rental apartments in Xóm Chiếu Ward, said earlier restrictions had affected both revenue and business credibility.“We previously signed long-term arrangements with foreign clients but had to terminate them when regulations changed,” he said. “We lost deposits and, more importantly, trust from partners. Since the policy adjustment, some former clients have already contacted us again.”Industry representatives also said clearer regulations could help standardise a market that had continued operating informally despite restrictions.“A legal framework allows authorities and building management boards to supervise operations more effectively,” said a representative of a serviced apartment management company in HCM City.“Previously, many owners continued short-term rentals unofficially, making guest management and service quality difficult to control,” the representative said.Resident concerns remain unresolvedHowever, many residents expressed concern that the return of Airbnb-style accommodation could alter the living environment inside residential buildings.“At weekends, guests constantly move luggage in and out of the building, sometimes late at night,” said Lê Thị Thu Hương, 38, a resident of an apartment complex in Bình Lợi Trung Ward.“We often do not know who these visitors are or how long they stay. It creates a feeling of insecurity for long-term residents,” she said.Another resident in Tân Phú Ward said shared facilities were already under pressure during peak hours.“Apartment buildings are designed primarily for stable residential living, not hotel-style operations,” the resident said. “If short-term accommodation is permitted, management mechanisms also need to change accordingly.”Building management boards are expected to play a central role in balancing the interests of investors and residents.A representative of a residential project in Thủ Thiêm urban area said apartment complexes would likely need internal operating rules governing guest registration, security procedures, use of shared facilities and limits on the proportion of units used for short-term rentals.“Without clear internal regulations, disputes between residents and investors could continue,” the representative said.International comparisonsExperts said many major cities worldwide have adopted stricter supervisory mechanisms for short-term rentals.Singapore largely prohibits short-term rentals of less than three months in private residential properties, while Tokyo permits home-sharing activities under registration requirements and annual operating limits.Real estate expert Phạm Văn Bạch said HCM City’s policy adjustment could create both opportunities and operational challenges.“In the short term, the market may see an increase in accommodation supply for tourists and foreign professionals,” he said.“In the longer term, however, the city will need clearer standards on building operations, infrastructure management and security responsibilities to ensure sustainable development,” he added.Legal experts also warned that unresolved governance issues could remain a source of conflict.Lawyer Nguyễn Hoàng Anh of the HCM City Bar Association said residential apartment buildings were fundamentally different from hotels in terms of design and operational purpose.“Hotels are built specifically for accommodation services, while apartment buildings are designed for stable long-term living,” he said.“Frequent guest turnover increases pressure on security management, identity verification and infrastructure usage. In addition, responsibility for handling violations can become unclear because guests stay only temporarily,” he said.Experts said the city’s decision showed a trend of recognising short-term rental demand within urban tourism and property markets.However, they noted that the long-term success of the policy would depend on effective enforcement, operational transparency and consensus among resident communities.“If these governance issues are not addressed properly, tensions between economic interests and residential quality of life will likely remain a continuing source of debate,” Bạch said. — VNS