HCM City is developing a legal framework for short-term rentals, considering lifting a recent ban on rentals in residential complexes based on feedback from renters and industry experts.
An Airbnb rental in HCM City. City authorities are considering lifting a ban on short-term rentals such as Airbnb in residential complexes.
The Department of Tourism is working with the Department of Science and Technology to establish licensing regulations for apartment owners in this sector, with policies aimed at enhancing the sharing economy in tourism expected to be finalised by 2027.
Agencies will be creating a legal framework for business registration and licensing of short-term rental operators, as well as develop tax policies for room rentals.
It will also establish a coordination mechanism between local authorities and sharing platforms to ensure compliance with public safety.
HCM City will also use information technology and big data to monitor business operations and analyse tourism demand and market trends.
In recent years, the sharing economy, especially short-term rentals in apartment complexes, has rapidly grown in the city, catering to diverse needs of tourists and young people seeking homestay experiences.
However, this model also presents challenges, including public order issues, inadequate fire safety compliance and insufficient oversight.
These limitations can pose risks for tourists, especially without clear contracts or legal invoices, potentially harming HCM City’s tourism reputation.
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.
Experts 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’ incomes 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.