An Airbnb rental in HCM City. City authorities have prohibited short-term rentals such as Airbnb in residential complexes. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City authorities have banned short-term rentals, such as those on Airbnb, in residential apartment complexes due to rising tensions between long-term residents and short-term renters. 

Under the new regulations, only tourist-specific developments (known as condotels) can be legally rented for short stays. Regular residential apartments are prohibited from short-term rentals.

Renting out apartments for short-term stays or for tourism purposes requires specific legal compliance, including guest registration with local authorities. 

The new Housing Law, effective August 1, 2024, reinforces these restrictions, classifying daily or hourly rentals as hotel operations requiring proper licences.

In addition, under the 2023 Housing Law, residential apartments must be used solely for living, and misuse for business purposes can lead to severe consequences.

The growing popularity of Airbnb rentals over the years has led to complaints from long-term residents about noise and the misuse of shared facilities, local media reported.

Investors in short-term rental properties have been concerned about potential financial losses due to the ban, especially since many have financed their purchases with loans. 

Local media reports indicated that property owners can earn between VNĐ5-6 million (US$200-250) monthly per unit, with some managing multiple units generating up to VNĐ35-40 million after expenses. — VNS