Regulations on fees for apartment building management services in Vietnam

What is an apartment building?

Pursuant to Article 3 of the Law on Housing 2014, Apartment building means any multi-storey building which has multiple apartments, public stairs, hall ways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes.

Regulations on fees for apartment building management services in Vietnam (Internet image) 

Regulations on fees for apartment building management services in Vietnam

Pursuant to Article 106 of the Law on Housing 2014, the fees for the apartment building management services (hereinafter referred to as the service fees) must be determined publicly, transparently and according to tasks carried out regarding each type of apartment building.

The service fees do not include expenditures on maintenance of common areas, parking fees, expenditures on fuel, energy, tap water, television services, communication and other fees serving the private use of the homeowners or occupiers.

Regarding a multi-owner building, the service fees shall comply with regulations below:

- In case it fails to organize the Apartment building meeting for the first time, the service fees shall be the fees as defined in the agreement on housing sale or lease purchase,

- In case the Apartment building meeting has been organized, the service fees shall be determined by the Apartment building meeting.

Regarding any single-owner building, the service fees shall be charged according to the agreement concluded between the homeowner and the occupiers; regarding any state-owned apartment building, the service fees shall comply with Clause 5 of this Article.

The People’s Committee of the province shall issue the service fee bracket in order to apply to the following cases:

- Collect the service fees on state-owned apartment buildings in the province;

- Enable contracting parties to enter into agreements on housing sale or lease purchase or in case there is dispute over the service fees between the managing organization and the homeowners and the occupiers; in case it fails to agree about the service fees, the fees in the service fee bracket issued by the People’s Committee of the province shall be applied.

In addition, based on Article 30 of the Regulations on management and use of apartment buildings issued together with Circular 02/2016/TT-BXD, the service price shall be instructed in Article 106 of Law on Housing 2014 on Housing and based on types of apartment buildings and agreements with managing units. In case an apartment building is put into service but the first apartment building meeting is yet to be held, the service price shall be decided by the investor and specified in the purchase and lease purchase contract; after the first apartment building is held, the service price shall be based on negotiations with managing unit.

- The service price is expressed in Vietnam dong and calculated according to usable square meter (m2) or other areas within the apartment building (determined according to carpet area).

- For mixed-use apartment buildings, the service price for the functional area, and privately-owned area used as auto parking space is determined as follows:

+ The service price for office, service and commercial area shall be negotiated between the parties on the basis of actual business, service and office activities and specific positions of apartment buildings.

+ The service price for privately-owned area used as auto parking space shall be negotiated between parties and may be lower than the service price for apartment buildings in the same apartment building. These regulations also apply to privately-owned areas used as auto parking space of residential apartment buildings.

+ If the service price as prescribed in Points a and b, this clause cannot be agreed by the parties, the service price issued by People’s committees of provinces where such apartment building is situated shall be used instead.

- Managing units shall determine and collect expenditures on administration and operation of apartment buildings (herein ‘expenditures on services’) from owners and occupants on the basis of prices prescribed in Article 30 of Circular 02/2016/TT-BXD.

Mai Thanh Loi

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