need a harmonious solution

Although we know this is something that needs to be done, in the long term we need a solution to ensure the interests of both businesses and people in need of accommodation.

Smoldering worry

After a series of recent fire and explosion incidents that have caused serious consequences to people's lives and property in mini apartment buildings and boarding houses, Hanoi authorities have taken strong action, conducting a general inspection, reviewing and handling facilities that do not ensure fire safety.

Mini apartment building in Khuong Dinh ward, Thanh Xuan district, Hanoi. Photo: Pham Hung

Accordingly, by the end of June 2024, Hanoi City Police had inspected 36,972/36,972 lodging establishments; sanctioned 3,134 cases with 4,310 violations, fined more than 12.83 billion VND; temporarily suspended 672 cases, 75 cases are being suspended, required 16,479 establishments to stop operations; 100% of investors have signed a commitment to implement. For mini apartments, 193 establishments were inspected; temporarily suspended 14 cases, 4 cases are being suspended, required 22 establishments to stop operations.

“This is an unprecedented large-scale inspection of lodging and mini-apartment businesses in the capital. Through that, we have found many loopholes in ensuring fire safety for people, so when an incident occurs, there is no timely response solution. Currently, in the capital, the housing business is developing strongly with a large number, so in the coming time, the City Police will continue to tighten inspection and review work to promptly detect and strictly handle violations to ensure maximum safety for people's lives and property" - Lieutenant General Nguyen Hai Trung, Director of Hanoi City Police said.

Hanoi is one of the two largest cities in the country along with Ho Chi Minh City. Every year, in addition to having to receive a large number of migrants to live and work, the city also welcomes an additional 200,000 - 300,000 people, a mechanical increase in population right in the area. Therefore, housing is one of the pressing social security issues, posing many challenges for the capital's government.

Meanwhile, with the rapid urbanization, land funds for housing development are increasingly narrowing, leading to constantly escalating housing prices, so renting is the leading solution for low-income people (freelance workers, students, workers in factories, enterprises...).

“Cheap products often come with low quality, that is the reality. Most of the boarding houses that low-income people are renting are buildings that are not built to ensure quality, lack service facilities, and lack fire prevention and safety...

Along with that is the lack of awareness of people about ensuring safety in daily life, creating hidden risks that threaten the lives and property of people living there. Meanwhile, the legal system almost "forgets" the regulations on management and operation of this product" - Urban management expert, architect Tran Huy Anh acknowledged.

Tighten management

Nguyen Hai Linh, a second-year student at Hanoi University of Electricity, rented a room in the Ho Tung Mau area (Cau Giay district). He said that nearly a month ago, the landlord informed him that he had to move to another place because the facility had been temporarily suspended by the city's authorities due to not ensuring fire safety conditions.

“For nearly a month now, I have been looking for a room to rent in areas near my school for convenience, but I have not found one yet, so I had to move my belongings to stay with a friend from the same school. Finding a room to rent at this time is even more difficult because many lodging businesses have been forced to temporarily stop operating due to not meeting fire prevention and fighting requirements,” Nguyen Hai Linh shared.

Recently, the boarding house business has flourished in the capital Hanoi, considered a "money-making" real estate type for investors. Those who do boarding house business do not need to have a large amount of finance, with a huge demand for renting from freelancers, students, workers, office workers, even experts... so as soon as the construction is completed, there will be people coming to rent.

In particular, even if the investor has to use bank loans to do business, after only 5-7 months of operation, they can rotate the capital to repay the debt. According to the calculations of the landlords, it only takes 3-5 years to recover the initial investment capital, then they can rest assured to earn profits. An investor only needs to manage about 10 boarding rooms to have an income of 30-70 million VND per month.

“In a large city like Hanoi, the demand for housing is huge, but not all workers can afford to rent an apartment. They are forced to live in smaller boarding houses, even with worse facilities and services. This benefits both sides, the investor and the tenant. But in reality, in recent times, due to the lax management of the authorities, thousands of boarding houses have been built and operated without ensuring safety, amenities, fire prevention and fighting criteria” – Vice President of the Vietnam Real Estate Association - Dr. Nguyen Van Dinh analyzed.

According to experts, the Hanoi authorities' general review and inspection of lodging establishments regarding fire prevention and fighting safety in the past and in the near future is necessary and must be done, better late than never after the recent fire incidents. However, many opinions also believe that the authorities need to have a harmonious and legal solution while still ensuring the interests of all parties.

“At present, the type of mini apartments and boarding houses has developed strongly with a large number. After careful research and extensive consultation with people, experts, and managers, the Ministry of Construction has included specific regulations on the business of these types in the Housing Law 2023. Currently, the Ministry of Construction is continuing to complete the regulations guiding implementation, and has sent documents to localities on organizing the review, inspection, and classification of business establishments, tightening new construction activities; along with that, there are solutions to handle and overcome cases that do not meet the conditions for fire prevention and fighting so that they can continue to do business in the safest way" - Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) Hoang Hai said.

 

It is necessary for the authorities to step up inspection and handling of individual houses for rent or combining business with renting, to propagate and guide the addition of fire prevention and safety conditions, and to resolutely close down any establishments that do not meet them. In addition, the State management agency (the Ministry of Construction) also needs to soon issue a Decree and Circular stipulating specific, detailed standards and regulations, guiding implementation and putting the boarding house business into the conditional business sector, making it easier for local authorities to manage - Lawyer Trinh Huu Duc (Vietnam Lawyers Association)

Source: https://kinhtedothi.vn/hang-nghin-nha-tro-chung-cu-mini-tam-dung-hoat-dong-can-giai-phap-hai-hoa.html