With rapid urbanization, apartment buildings are becoming increasingly popular in cities. Besides providing a place to live, many people intend to use their apartments for business purposes, such as renting them out by the hour or day in areas with tourism potential. Is this type of business legal?
The Housing Law of 2023 strictly prohibits the use of apartment units for purposes other than residential use.
Specifically, point c, clause 8, Article 3 states that it is prohibited for apartment owners to arbitrarily change the function or purpose of use of the common areas of the apartment building; use the apartment for purposes other than residential use; alter or damage the load-bearing structure; or divide or separate apartments without permission from the competent state authority.
This is also stipulated in Clause 11, Article 6 of the 2014 Housing Law.
Lawyer Pham Thanh Tuan stated that the 2020 Residence Law defines a legal residence as a place used for living, owned or used by a citizen, including houses, ships, boats, other means of transportation, or other residences as prescribed by law. Citizens are required to register their permanent or temporary residence as prescribed.
Furthermore, Clause 6 of Article 2 defines "staying" as a citizen's stay at a location other than their permanent or temporary residence for a period of less than 30 days. With this approach, hourly or daily rentals fall under the category of "staying" and are not considered "residential."
According to the lawyer, if the owner of an apartment rents it out to others for residential purposes, it does not violate any legal regulations.
A condominium project in Hanoi (Photo: Tran Khang).
What are the penalties for violations?
Government Decree 16/2022, in Clause 1, Point e, Article 70, stipulates a fine of 20-40 million VND for the act of using apartment units for purposes other than residential use.
Regarding the penalties, Point c, Clause 3, Article 4 of the Decree states that the aforementioned penalty applies to organizations committing violations. For individuals committing similar violations, the penalty is half the amount imposed on an organization, equivalent to 10-20 million VND.
In addition to being fined the aforementioned amount for administrative violations, organizations and individuals committing violations must also take remedial measures by using the apartment for residential purposes.
Furthermore, when using apartment units for short-term or hourly rental services, other violations may result in additional penalties.
For example, the act of using shared areas and equipment for private use may result in a fine of 30-40 million VND for individuals or 60-80 million VND for organizations.
Source: https://dantri.com.vn/bat-dong-san/co-duoc-dung-can-ho-chung-cu-de-kinh-doanh-cho-thue-theo-gio-20240807142652051.htm
