Guidelines for managing revenue from the exploitation of houses and land by housing management and business organizations in Vietnam

Guidelines for managing revenue from the exploitation of houses and land by housing management and business organizations in Vietnam (Internet image)

On August 23, 2024, the Government of Vietnam issued Decree 108/2024/ND-CP stipulating the management, use, and exploitation of houses and land that are public assets not used for residential purposes and assigned to local housing management and business organizations.

Guidelines for managing revenue from the exploitation of houses and land by housing management and business organizations in Vietnam

According to the provisions in Article 23 of Decree 108/2024/ND-CP, the management of funds collected from the exploitation of houses and land by housing management and business organizations is as follows:

- Organizations and individuals renting houses from housing management and business organizations are responsible for fully paying the rent to the housing management and business organizations within the specified timeframe in the Rental Agreement. In the event of delayed payment or partial payment, the tenant must pay a late fee to the housing management and business organization.

- Agencies, organizations, and units temporarily using houses and land are responsible for paying the temporary usage costs of the houses and land to the housing management and business organization as specified in Clause 6, Article 20 of Decree 108/2024/ND-CP.

- The housing management and business organization must fully remit funds collected from house and land exploitation (rental money, late payment fees, temporary usage costs as stipulated in Clause 1, Article 23 of Decree 108/2024/ND-CP), and funds received from the installation of telecommunication works on houses and lands of the housing management and business organizations in accordance with telecommunications laws to the state budget by the 30th of each month.

- Handling, management, and use of the deposit from house rent applicants or auction participants:

+ For rentals under listed price format, if the applicant has submitted a Rental Application but does not participate in the draw to determine the lessee or has been identified as the lessee but does not sign the Lease Agreement/refuses the right to lease, they are not eligible to receive the deposit back.

+ If the applicant has been determined as the lessee and signs the Lease Agreement with the housing management and business organization as stipulated in Decree 108/2024/ND-CP, the deposit is converted to a security deposit to ensure the lessee's obligations and is refundable upon the termination of the Lease Agreement after settling any unpaid obligations to the state, and it is non-refundable if the lease agreement is violated.

+ For deposits that are not refundable in the cases specified in Point a, Clause 3, Article 23 of Decree 108/2024/ND-CP and as mentioned in Clause 6, Article 39 of the Law on Property Auction 2016 (amended 2024), the housing management and business organization must remit these funds to the state budget within 30 days from the date the deposit is determined to belong to the property owner (housing management and business organization).

+ For deposits converted to security deposits to ensure the obligations of the house tenant in rentals under the listed price format as prescribed in Point a, Clause 3, Article 23 of Decree 108/2024/ND-CP and in auctions as stipulated in Clause 5, Article 39 of the Law on Property Auction 2016 (amended 2024), the housing management and business organization is responsible for managing and fulfilling the obligations as specified in Point c, Clause 3, Article 16 of Decree 108/2024/ND-CP and any other unpaid obligations of the tenant (if any); any remaining funds (if any) must be remitted to the state budget within 30 days from the date of termination of the Lease Agreement.

More details can be found in Decree 108/2024/ND-CP, which comes into force in Vietnam from August 15, 2024.

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