Currently, not only motels and hotels are rented by the hour, but the demand for renting and leasing apartments by the hour in Hanoi is booming with all types and prices.
Grasping this trend, many investors have spent billions of dong to buy apartments and rent them out by the day instead of by the month.
Posting an ad for an apartment for rent in Hanoi, Mr. N.K (phone number 0984.007.xxx) shared that apartments rented by the hour or day are very suitable for customers traveling for work, tourism, or vacation.
Mr. N.K. currently has many apartments for rent in Tran Duy Hung Street (Cau Giay District) and Nam Tu Liem District. These apartments are fully furnished, with prices ranging from 355,000 - 599,000 VND/hour, with additional hours of 99,000 VND/hour, or 850,000 VND to 2 million VND/day depending on the segment and location.
Sharing with reporters, Mr. Nguyen Duc Hung - an investor who is renting out apartments by the hour in Nam Tu Liem district - informed that many tourists recently often choose short-term rental houses partly because the price is about 30% cheaper than renting a hotel with similar quality, convenience and private space.
After more than 2 years of implementation, Mr. Hung's rental apartments have a fairly good profit margin, with an occupancy rate always reaching over 75%. However, since the end of July, the pressure from the management board and residents in the buildings has increased, causing his business activities to be significantly affected.
Mr. Hung added that a friend of his is borrowing nearly 2 billion VND to invest in this type of business and with the current situation, this investment could result in a loss.
Regarding this issue, according to Dr. Su Ngoc Khuong - Senior Director of Savills Vietnam, many countries in the world currently allow the use of apartments for rental business and have specific regulations attached.
This is a new form of accommodation, both creating income for homeowners and increasing accommodation facilities for tourism, so it needs to be supported.
Meanwhile, lawyer Le Van Hoi - Director of My Way Law Firm - said that the short-term apartment rental model is giving rise to many worrying problems.
These shortcomings are not only related to security and social order issues, but also affect the management and common life in buildings.
Failure to closely monitor the identity and activities of short-term tenants can lead to security risks, increasing the likelihood of complex situations that are difficult for building management to handle in a timely manner.
In addition, the constant turnover of tenants also causes disruptions in residents' lives, from noise, disorder to increased risk of property loss.
“The function of an apartment building is not to serve tourist accommodation and using it for this wrong purpose could destroy the inherent structure of a residential community, because the living environment and the tourist environment have completely different requirements and characteristics,” added lawyer Hoi.
