Method for calculating rent of official housing in Vietnam

Method for calculating rent of official housing in Vietnam (Internet image)

Method for calculating rent of official housing in Vietnam

The rent of an official housing includes operating management costs, maintenance costs, and management costs for renting official housings. Article 31 of Decree 95/2024/ND-CP stipulates the method for determining the rent of an official housing in Vietnam as follows:

* Case 1: Investing in constructing an official housing project or purchasing the entire commercial housing project to use as an official housing:

- Operating management costs include: salaries and other expenses of the unit managing the official housing; costs for services in the official housing area as prescribed; costs for electricity, and water for the office of the managing unit; costs for public lighting, other electricity-consuming loads in the housing area, and other costs as prescribed; the service price for operating management of the official housing is implemented according to the price frame issued by the provincial People's Committee applicable in the area where the official housing is located;

- House maintenance costs include: all costs for regular maintenance, periodic repairs, and emergency repairs of housing structures, repairs, replacement of equipment, and furniture associated with the official housing; these costs are determined by the investor or managing agency based on the building maintenance process according to construction and housing laws;

- Management costs for renting houses include: indirect management costs of the official housing management agency and direct management costs of the unit managing the official housing; this cost is determined as a percentage (%) of the total operating and maintenance management costs decided by the housing owner representative agency.

* Case 2: Purchasing several commercial apartments in the investment project of commercial housing to use as an official housing:

- Operating management costs are implemented according to regulations on managing the operation of apartment buildings;

- House maintenance costs and management costs for renting houses are defined under Case 1.

Formula for determining the rental price of an official housing applicable to the above 2 cases:

In which:

- G_T is the rent per square meter of apartment use per month (VND/m²/month).

- Q is the total annual operating management and rental management cost of the official housing area (VND/year).

- B_t is the average annual maintenance cost inside apartment buildings and associated furniture (VND/year).

- T_dv is the revenue from business services in the official housing area as prescribed by law (VND/year).

- S is the total usable area of the apartments in the official housing area (m²).

- T is the VAT rate according to the VAT law.

The revenue generated from renting official housings is used for maintaining the official housing, interior equipment, and operating management costs; in case the revenue from renting official housings is insufficient for total maintenance and operating costs, the state budget will support the shortfall according to the principle that the central budget covers official housings managed by central agencies, and local budgets cover official housings managed by local agencies.

The provincial People's Committee is responsible for issuing rental price frames for official housings managed by local authorities in Vietnam.

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