An Airbnb rental in HCM City. City authorities are considering lifting a ban on short-term rentals such as Airbnb in residential complexes. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City will review its regulations for short-term apartment rentals following a recent ban on platforms like Airbnb that has sparked concerns among homeowners who rely on rental income.

The Department of Housing Management and Real Estate Market under the Ministry of Construction is set to suggest changes to the current regulations. 

The changes aim to address issues pointed out by the Department of Document Inspection and Management of Administrative Violations from the Ministry of Justice.

The Justice Department highlighted a contradiction in the 2023 Housing Law, which bans using apartments for non-residential purposes, while short-term rentals basically involve tenants living in these spaces. 

They said that the current ban lacks a solid legal foundation because it seems unreasonable to allow long-term rentals but not short-term ones.

While acknowledging the potential disruptions caused by short-term rentals, the Justice Department advocated for management solutions rather than a complete ban. 

They propose requiring homeowners to register their rentals and adhere to safety regulations.

If the ban remains in place, regulatory bodies may consider enforcing penalties for those who violate the rules. 

In February, the city imposed the ban on short-term rentals, including those of Airbnb, due to tensions between long-term residents and short-term renters.

While some residents support the ban, opinions among apartment owners vary, with many expressing concern over potential financial losses.

Lê Hoàng Châu, chairman of the HCM City Real Estate Association, suggested that rather than banning short-term rentals, the city should explore their benefits, as they could boost tourism and generate revenue.

Currently, nearly 10,000 apartments in the city operate as short-term rentals, contributing significantly to homeowners’ income and the city’s budget, according to a recent survey.

These short-term rentals reportedly generate an average monthly revenue of between VNĐ15 million and VNĐ60 million (US$630-2,520) for homeowners, which also contributes to the city’s budget.

Short-term rentals have emerged as a thriving business model in many countries. In case of violations, guests may be prohibited from utilising the service in the future.

However, the increasing popularity of Airbnb rentals has resulted in complaints from long-term residents regarding noise disturbances and the misuse of shared facilities. — VNS