Short-term apartment rentals are booming again

Short-term apartment rentals are booming again
Short-term apartment rentals are booming again

In the context of a difficult real estate market over the past year, the rental apartment segment in Ho Chi Minh City and major cities is said to be less affected. In particular, short-term apartment rental services based on the Airbnb model (a form of sharing economy in accommodation activities) are quite bustling thanks to the increasing number of tourists.

Bustling with tenants but residents are frustrated

Just go to social networks and type the keyword “rent an Airbnb apartment” or access Airbnb and similar applications, renters can easily find many apartments for rent in the center of Ho Chi Minh City such as The Metropole Thu Thiem ( Thu Duc City), The Goldview (District 4), Vinhomes Central Park (Binh Thanh District)… with an average price of 1.3-1.4 million VND/night.

In Vinhomes Central Park area, depending on weekdays or weekends, 1-room or 3-room apartments will have different rental prices. Specifically, a 1-bedroom apartment here has an average rental price from 900,000 VND to 1.1 million VND/night; 2-bedroom apartment from 1.2-1.4 million VND/night; 3-bedroom apartment from 1.5 to 1.6 million VND/night.

However, this service has recently received strong reactions from residents in apartment buildings because it affects their lives and benefits. At the Millenium Masteri apartment complex (District 4, Ho Chi Minh City), many households are frustrated because of the noise and disorder when guests frequently come and go regardless of time, causing overloading of elevators and entertainment areas. play, swimming pool, gym… during peak hours or weekends.

A luxury apartment building in Ho Chi Minh City has short-term apartment rental services. Photo: LE TINH

According to this apartment’s management board, some people using Airbnb services have turned residents’ lives upside down. In October 2023 alone, the number of visitors staying overnight was nearly 1,300 people and more than 78% of these were foreign visitors. The management board recorded 4 incidents causing insecurity and disorder, mainly due to tenants not registering information with the building management board.

Mr. TT, a person who works in this apartment building, said that the apartments for rent here cost 1-2 million VND/day, the number of residents is 4-5 people or more and are always fully booked. This makes residents unhappy.

“Previously, tenants were carefree in using elevators and public amenities, causing residents to constantly complain. After stressing, the management board did not allow tenants to use residents’ amenities such as swimming pools, gym… but the homeowner has a “resident card” so they still take guests in and out normally. Residents are very upset but have to endure it” – Mr. TT said.

Mr. Van Lam, living in the River Gate apartment building (District 4, Ho Chi Minh City), said that Airbnb guests usually stay from Thursday to Sunday. Previously, residents also complained because some tenants caused insecurity and order, but because the law did not prohibit everything, everything continued normally.

“Renters are mainly foreigners or from the North coming to Ho Chi Minh City for business or tourism. When using the Airbnb service, tenants just need to come to the apartment, get the key from the mailbox, then someone will guide them.” Leading them to check in is quite easy, so this service is increasingly flourishing” – Mr. Lam said.

It is difficult to ban but needs to be managed

According to Mr. Tran Quang Trung, Director of OneHousing Business Development, who has a lot of experience in the real estate field, while many other real estate segments are gloomy, rental apartments are still positive, rental prices are constantly increasing. The average rental price of apartments in Hanoi increased by 4.5% in the past year. This urges many investors to choose apartments as a form of investment that generates regular and long-term cash flow.

“Apartment rental service by the hour, by the day… is still a “fertile land”. For example, Masteries Homes’ Masteri West Heights project in Hanoi, the apartment design and amenities are very suitable. Suitable for making hotel apartments, many homeowners can equip it like a hotel and operate it as a chain, bringing a very good source of passive income.

Profit from apartment rental in this form can be 2-3 times higher than pure monthly rental. As far as I know, there are investors who own dozens of apartments, equivalent to a mini hotel, and are preparing to put them into operation upon handover” – Mr. Trung said.

Also according to Mr. Trung, usually in any area where there are foreigners renting, the rental price will be good, which means the price level in that area will be pushed up. Increasing rent also helps real estate prices there increase.

In the context of a difficult real estate market, apartment rentals are still steadily profitable, especially Airbnb services, which has attracted many investors to rush to rent apartments for short-term accommodation business via Airbnb (or Airbnb). also called host). Accordingly, hosts only need to register an account on the application platform and post news. Transactions made online are very fast and convenient. Sometimes owners and tenants do not need to meet face to face.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, admitted that apartment rental services via Airbnb actually cause trouble for residents but it is difficult to ban. Because if the owner does not live there, they have the right to rent it out.

However, to limit the situation that causes loss of security and order, there must be management solutions. He proposed that the draft Housing Law should stipulate that if owners want to use apartments for rent for tourist accommodation, they must register their business, pay taxes and be responsible for managing guests so as not to affect residents.

Residents and management need to be more drastic

A lawyer in the real estate field said that the law has regulations on using apartments for non-residential purposes. Specifically, Clause 11, Article 6 of the 2014 Housing Law prohibits apartment owners from “using the apartment for non-residential purposes”, meaning that renting an apartment is a prohibited act.

However, this regulation is almost impossible to implement in practice. “Therefore, for the regulations to be enforced, the most important thing is the will of the residents, followed by the opinion of the building’s management board. The management board only needs to show determination and clarity, and make sure the This kind of stay will no longer continue” – the lawyer noted.

The article is in Vietnamese

Tags: Shortterm apartment rentals booming


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