Regulations on “Mini Apartments” under the New Law: Ensuring Consumer Protection and Legal Clarity

The New Law on Housing in Vietnam has imposed strict conditions on individuals operating “mini apartments” in an effort to protect the rights and interests of consumers. These “mini apartments” are typically housing with multiple floors owned by an individual, who leases or transfers the rooms inside at a cheaper price compared to apartments owned by organizations.

Under the new law, a “mini apartment” is defined as housing with more than 2 floors and either sub-divided accommodations on each floor or a total of more than 20 sub-divided accommodations for lease. Individuals looking to invest in such housing projects must meet certain construction qualifications, firefighting and fire prevention design standards, and conditions for traffic roads to ensure safety.

The amendments to the Law on Housing come in response to the increasing number of investment projects for housing with mixed-use, as well as debates surrounding the compatibility of current housing laws with other related regulations. The goal is to create a clear and safe business environment for real estate projects, while also ensuring consistency with other applicable laws.

However, there is some concern that the current regulations may hinder the “mini apartment” business, as only enterprises are allowed to become investors in housing projects. It remains to be seen how future guiding decrees and circulars will address or clarify this issue to provide a solid legal basis for individuals operating “mini apartments” in Vietnam.