Rampant use of apartments for services and business

Cao Nguyên |

Although there are regulations on penalties for using apartments for improper purposes, many apartments in Hanoi are still transformed into company offices or service business locations.

Both living and doing business

The Government has issued Decree No. 339/2026/ND-CP stipulating penalties for administrative violations in the fields of construction, management of technical infrastructure works, management, housing development, and real estate business. This Decree takes effect from August 26, 2026, accordingly, the penalty for the act of using apartments for non-residential purposes is increased to 100-130 million VND, except for leasing for living according to regulations.

In fact, according to Lao Dong reporters' findings at many apartment buildings in Hanoi, there is still a situation of using apartments for services, business and even renting them out as offices.

At an apartment building in Tay Mo ward (Hanoi), an apartment on the 2nd floor hangs a service sign for a dental - maxillofacial specialist clinic. Also in this building, some apartments are used for living and beauty services such as shampooing and eyelash extensions.

Not only in Tay Mo ward, but also in some apartment buildings in An Khanh commune, there is a similar situation. Many apartments are used by homeowners to both live and open business services such as shampooing, massage or seafood trading... Service business owners here regularly post on the market group of apartment building residents to sell goods and invite customers.

Mr. Phan Minh (character name changed upon request) - a beauty service owner renting an apartment in building HH4C, Linh Dam urban area (Hoang Liet ward) said that previously he and his wife rented the 1st floor to open a store. However, due to excessive costs, he and his wife decided to move to rent an apartment in the same building at a cheaper price and with a more spacious space.

Ms. Nguyen Thi Phuong (39 years old, a resident living in an apartment in An Khanh commune) reflected that many people bought back apartments but did not live in them and then rented them out as offices and online business.

The apartment building is for residents to live in, carrying more customers outside will cause the elevator to be overloaded, not to mention the building security is difficult to control" - Ms. Phuong added.

In fact, there have been cases of using apartments as places to trade in counterfeit goods. Typically, in July 2026, Market Management Team (QLTT) No. 1, Hanoi Market Management Sub-Department inspected an apartment on the 9th floor, Binh Minh Garden apartment building (Viet Hung ward, Hanoi City) owned by Mr. N.V.T. Here, functional forces discovered 4,092 bottles of fake Epson brand ink and 186 bottles of fake Canon brand ink being protected in Vietnam.

Mr. Nguyen Duy Thanh - Chairman cum General Director of Global Home Management Company, Vice Chairman of Ho Chi Minh City Apartment Building Management Association (HCMO) said that for many years, the situation of using apartments for improper purposes has become a prominent problem in Ho Chi Minh City. Many apartments have been transformed into warehouses, offices, classrooms or unregistered short-term accommodation. This not only violates the law but also poses many risks to safety, security and urban order.

The management board and the management board have repeatedly proposed to the government, but the handling has not been finalized due to limited authority and sanctions. In addition, the situation of short-term leasing without business registration and without temporary residence declaration is also common, causing difficulties for population management.

Raising awareness of apartment owners

Talking to reporters, lawyer Nguyen Doan Hung - Hanoi Bar Association - said that the law not only prohibits the case of using the entire apartment building as an office or business establishment, but the case of both living and organizing business, providing services in the apartment can also be handled.

The fact that the apartment owner or some employees stay overnight does not make business activities in the apartment legal. Functional agencies must base on the purpose and method of actual use.

If the apartment has signs, desks, staff working regularly, receiving customers, organizing teaching, beauty, medical examination and treatment, or storing goods for business, there is a basis to determine that the apartment is being used for purposes not intended for living" - lawyer Hung analyzed.

However, it is also necessary to distinguish the organization of an apartment into a business location from the case of a legal resident in the apartment, occasionally working online or handling personal work at home. It is not possible to just rely on the fact that there is a computer, desk in the apartment or online sales activities to implicitly conclude that there is a violation; penalties must be based on records, evidence and actual usage status.

According to point d, clause 3, Article 62 of Decree No. 339/2026/ND-CP, individuals using apartments for non-housing purposes may be fined from 100 million VND to 130 million VND; if the violating entity is an organization, the corresponding fine is from 200 million VND to 260 million VND.

The person being penalized must be the actual subject performing the violation. If the owner directly engages in business, the owner is responsible; if the business leases the apartment and then organizes it as an office, the responsibility of the leasing business must be considered. It is not possible to automatically penalize the apartment owner just because they are the owner without verifying the lease contract, the purpose of leasing, the actions and faults of each party.

For this act, functional agencies and public officials in the locality can inspect and make records. However, because the maximum level of the fine frame exceeds the sanctioning authority of the Chairman of the Commune-level People's Committee, the dossier must be transferred to a person with sufficient authority; in the local government system, the Chairman of the Provincial-level People's Committee is the person with sufficient authority to issue a sanctioning decision.

Mr. Nguyen Duy Thanh - Chairman cum General Director of Global Home Management Company - said that the People's Committees of wards and communes need to coordinate with the Department of Construction to regularly supervise, especially at apartment buildings with violations reflected. Applying monitoring technology such as Online Operation Management System, monitoring abnormalities in electricity and water to detect apartments used for the wrong purpose.

Regarding sanctions, it is necessary to apply high penalties according to Decree 339, forcing functional restoration, and even coercion if the household owner does not comply. At the same time, clearly stipulate the responsibility of local authorities, avoiding avoidance and shirking, ensuring thorough handling right from the grassroots level.

Cao Nguyên
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