The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the Ho Chi Minh City People's Committee requesting permission and providing solutions to manage the short-term apartment rental model.
Since February 27, 2025, when Decision No. 26/2025 of the Ho Chi Minh City People's Committee officially took effect, many apartment buildings in the city have simultaneously issued notices prohibiting short-term apartment rental activities by day and week.
According to HoREA, this ban has directly affected the livelihoods of about 8,740 apartment owners in 24 apartment buildings, causing thousands of workers to lose their jobs.
Ms. Tran Minh Ai - Director of Real Estate Management Department at Savills Vietnam commented that Decision No. 26/2025 of the Ho Chi Minh City People's Committee was issued to clarify the concepts and conditions of application, creating a more specific legal basis for apartment management units and Management Boards to be able to control effectively. This is not an "absolutely banned" order, but a step to tighten and clearly classify the business model in apartment buildings.
From an objective perspective, the impact of controlling or limiting short-term apartment rental will depend largely on the actual supply-demand status of the accommodation market. Accordingly, if the supply of hotel rooms is abundant, tightening the short-term accommodation model from apartments can contribute to the market re-balancing, supporting official accommodation establishments to maintain stable operations.
On the contrary, in the context of a scarce supply market, especially during the peak season, short-term rental apartments can act as a flexible additional channel, meeting increased accommodation needs.
In reality, the hotel market in Ho Chi Minh City has not really caught up with the recovery and growth momentum of the tourism industry. According to Savills data, the supply of hotels in Ho Chi Minh City has only increased slightly in recent years. Meanwhile, the number of tourists to the city is recording double-digit growth. Notably, the number of luxury hotels expected to open in the next three years is still quite limited.
Long-term leasing is allowed while short-term leasing is limited, which may stem from differences in the purpose of use and the level of impact on the apartment living environment. From the perspective of the management board, it is possible to understand why short-term leasing activities are subject to more requirements and strict control.
In case the market is lacking rooms, the city's tourism industry needs a short-term apartment rental model to promote tourism, then the state management agency can consider building a clearer legal corridor to manage short-term rental types to avoid affecting residents' lives.
Currently, not all apartment complexes are qualified to operate as truly tourist accommodation establishments, from security systems, on-duty personnel, to guest management software. Therefore, to ensure the harmony of interests between residents, owners and management agencies, it is possible to consider some approaches.
Ms. Tran Minh Ai commented that it is necessary to issue a clear legal framework to determine the criteria for apartments allowed for short-term lease, thereby granting a business license instead of spontaneously.
Apply a separate operating fee for short-term rental owners to compensate for additional costs of personnel, protection, control software, and maintenance of utilities.
Issue specific instructions on temporary residence registration, operating hours, tax obligations and regulations on fire safety.
Strengthen linkages between owners, building management boards and authorities, ensuring transparent information, guests are recorded and effectively managed through specialized software. Assign more rights related to short-term accommodation management to local authorities, Management Boards, Management Boards...
When there is a strict and clear mechanism, short-term accommodation activities can be completely included in the legal framework instead of operating spontaneously. This will help reduce risks for residents and avoid tax losses, while still meeting the diverse accommodation needs of the tourism market.
