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Theship hỏa tốc newly enacted regulations on the use of short-term service apartments have sparked considerable controversy among property owners and customers.

Starting August 1st, 2024, the new Housing Law will ban the use of apartments for anything other than residential purposes. While this regulation is intended to address some community concerns, it begs an important question: is banning short-term apartment rentals the right course of action?

This week, the Words on the Street column of The Hanoi Times shares some perspective on the issue.

If I had a vacant apartment during the peak tourist season in Hanoi, like many other homeowners, I would consider renting it out as a means of income generation.

Short-term lets have become a lifeline for many homeowners. Renting out a room or an entire apartment for short periods can significantly increase your income and give you the financial flexibility that long-term leases often don’t offer.

Many Vietnamese, particularly those working in major cities like Hanoi, still struggle financially as the capital, while one of the safest, is also one of the most expensive cities in the country.

For many, renting out a room or an apartment for short-term stays is not just a lucrative opportunity but also an essential means of making ends meet. Completely eliminating these rental options could have dire repercussions.

For some, it’s a way to cover their mortgage, save for future goals, or simply make use of otherwise vacant space. It’s hard to see why this opportunity should be denied to those who need it, given its obvious advantages.

For travelers, short-term rentals offer more than just a place to stay. They provide a homey setting that allows for a more authentic experience of the local culture.

In ways that hotels are unable to, these rentals often bring visitors to neighborhoods they might not otherwise explore, supporting small businesses and contributing to the local economy.

Another important point to consider is how a ban on Airbnb-style apartment rentals could affect tourism, especially among Western visitors.

These travelers often seek out affordable options like homestays, studios, and other short-term rentals that provide a more authentic and budget-friendly experience.

In today’s fast-paced world, the demand for short, relaxing getaways close to home is on the rise, especially among young people.

Short-term apartment rentals cater perfectly to this need, offering an affordable and private space to unwind, socialize, and recharge. Convenience is important, but so is providing consumers with options that suit their modern lifestyles.

Given these advantages, short-term apartment rentals are a promising business opportunity, allowing for the use of the underutilized property while also attracting tourists to Vietnam, particularly to Hanoi, which is by far one of the most expensive cities in the country for lodging.

Furthermore, an apartment is a personal property. Therefore, the homeowner has complete control over how to use it for their gain, so long as they follow the law.

Should these alternatives disappear, tourists would be compelled to book hotels, which would result in a considerable increase in their travel expenses. As a result, Vietnam might become less appealing as a vacation destination, as the higher expenses might deter potential visitors who are looking for affordable and immersive travel experiences.

However, while short-term lettings are obviously beneficial to landlords, they also pose challenges for regulators and local authorities, as well as inconveniencing neighbors.

Regulators do indeed have a lot on their plate when it comes to short-term rentals. Among the infractions they must handle are noise pollution, safety concerns, and tax evasion. Recent informal surveys conducted by the city’s fire prevention committees showed many rental apartments in Hanoi still do not adhere to safety standards.

Lawyers ' catchphrase is that individuals and organizations are allowed to do whatever the law does not expressly forbid or address. However, this also means that new business activities may not be supported, as they are not currently covered by the law.

So a civil servant would applaud a ban on short-term rentals. But as a civil servant, if he or she goes the extra mile, everyone wins. These issues are not insurmountable if noise, fire safety, and public security regulations are enforced as they should be. Rather than banning short-term rentals altogether, we could introduce regulations that more effectively address these concerns.

Clear guidelines on noise levels, mandatory safety inspections, and proper registration could go a long way to ensuring that these rentals coexist harmoniously in our communities.

The burden on regulators may not be as heavy as it seems, as many homeowners in Hanoi are quite picky about renting out their apartments for fear that tenants might damage their property or tarnish their reputation.

For landlords, a ban on short-term rentals would be a major blow. They have invested considerable money and effort in upgrading their properties.

As opposed to an outright ban, a more balanced approach would allow us to reap the benefits of short-term rentals while minimizing any negative impacts. When analyzing the impact of a ban on short-term apartment rentals, it is essential to take the larger socioeconomic background into consideration.

Designated areas for these rentals, combined with robust oversight and community engagement, could provide a solution that satisfies both homeowners and tenants. This way, the cultural and economic benefits that come with short-term rentals may be maintained while the uniqueness of our neighborhoods is preserved. By banning these rentals, we risk losing a distinctive aspect of our local tourism that many have come to appreciate.

Moreover, it’s to understand that the demand for short-term rentals won't go away on its own. Instead, it may drive these rentals underground, where they become harder to monitor and control. This could lead to increased risks and reduced safety for those who continue to seek out these accommodations.

Bringing these properties up to code quickly would be incredibly difficult. The gap between existing conditions and the required standards could make enforcement problematic and could exacerbate safety concerns if these rentals are forced into non-compliance.

Balancing these factors with practical enforcement and safety measures will be crucial to ensure that the new regulations do not inadvertently create more problems than they solve.

To conclude, while the concerns surrounding short-term apartment rentals are legitimate, banning them outright may not be the wisest course of action. We can create a system that supports homeowners, enhances tourism, and respects the needs of local residents by focusing on thoughtful regulation and management.

There’s a middle ground that allows us to keep our communities vibrant and welcoming without taking away the opportunities that these rentals provide.

I believe there are better, more balanced solutions that can address the issues without taking away the benefits these rentals provide.

Shouldn’t we be embracing these evolving trends rather than restricting them?