Set up apartment building management training service business in Vietnam

Previously, apartment building management training service business was considered a conditional profession. However, with new changes in the law, regulations on business conditions have been significantly simplified. This creates more opportunities for organizations and individuals who want to participate in this field. Viet An Law will help clients better understand the latest changes and necessary conditions to set up apartment building management training services in Vietnam.

Set up apartment building management training service business in Vietnam

Previously, the business of training, fostering professional knowledge, apartment management, and operation skills was a conditional business and investment industry. However, officially from January 1, 2021, according to the Investment Law 2020, this industry and profession is no longer a conditional business and investment industry. At the same time, according to Decree 31/2021/ND-CP guiding the Investment Law and Circular 05/2021/TT-BXD, business conditions for this type of service have been abolished.

Principles of management and operation of apartment buildings

The principles of management and operation of apartment buildings must be implemented according to the principles specified in Article 4 of Circular 02/2016/TT-BXD amended and supplemented by Clauses 2 and 3, Article 1 of Circular 06/2019/TT-BXD as follows:

Firstly, the management and use of apartment buildings are based on voluntary commitments and agreements between the parties but must not violate housing laws, relevant laws and social ethics.

Second, fees for managing and operating the apartment building are paid according to the agreement between the owner and user of the apartment building and the operating management unit, which is based on the provisions of housing law. The use of funds must be public, transparent, and for the right purpose.

Third, owners and users of apartment buildings must pay costs for maintenance, operational management, activities of the apartment building Management Board, and other state fees during the process of using the apartment building according to regulations; Must comply with regulations on management and use of apartment buildings and legal regulations.

Fourth, the apartment building management board represents the owners and users to exercise the rights and responsibilities related to the management and use of the apartment building according to the provisions of the law; In cases where an apartment building is not required to establish a Management Board according to the provisions of the Housing Law, the owners and current users can agree on a management plan for the apartment building.

Fifth, all violations of regulations on the management and use of apartment buildings must be handled promptly and strictly according to the provisions of law.

Regulations on management and operation of apartment buildings

Functional conditions and capacity of the apartment management and operation unit

According to Clause 2, Article 105 of the Housing Law 2014, the apartment building management unit must meet the functional and capacity requirements according to the following regulations:

• Established and operating according to the provisions of the Enterprise Law or the Cooperative Law and has the function of managing and operating apartment buildings;
• There must be professional departments for apartment building management and operation, including technical, service, security, sanitation and environmental protection departments;
• Have a team of officials and employees who meet the requirements of housing operation management including the fields of construction, electrical and water engineering, fire prevention and fighting, and operating equipment attached to the apartment building, and have a certificate of having been trained and fostered professional knowledge on apartment building management and operation according to regulations of the Minister of Construction.

Other regulations

• The apartment building operation management unit performs the management and operation of technical systems, and equipment provides services for the apartment building, and maintains the apartment building if capable of performing maintenance and other tasks related to apartment building management and operation;
• The apartment building management unit may collect operating management fees from apartment owners and users according to the prices specified in Clauses 3 and 4, Article 106 of this Law; For state-owned apartment buildings, the price of operation and management services shall comply with the provisions of Point a, Clause 5, Article 106 of this Law;
• The apartment management unit manages and operates many apartment buildings in one or more different areas.

Price of apartment management and operation services

According to Article 30 of Circular 02/2016/TT-BXD amended and supplemented by Circular 06/2019/TT-BXD, the price of apartment building management and operation services is determined according to the provisions of Article 106 of Housing Law based on each apartment building and based on agreement with the operating management unit.

In case the apartment building has been handed over and put into use but the first apartment building conference has not yet been organized

• In this case, the price of operation management services is decided by the investor and is clearly stated in the apartment purchase and lease purchase contract.
• After organizing the apartment building conference, the service price will be decided by the apartment building conference based on agreement with the operating management unit.
• The price of apartment management and operation services is determined in Vietnamese Dong and calculated per square meter (m2) of the apartment’s usable area or other area in the apartment building (determined according to the common area). water).

In case the apartment building has mixed-use purposes

In this case, the price of operations management services applied to the office, service, commercial area, and privately owned area used for car parking is determined according to the following principles:

• Operational management service prices applicable to office, service, and commercial areas are agreed upon by the parties based on the actual situation of business, service, and office activities and each unit apartment decoration;
• The price of operations management services applied to the privately owned area used for car parking is agreed upon by the parties and may be calculated lower than the price of operations management services applied to the apartment in the same building. This regulation also applies to privately owned areas used for car parking in apartment buildings for residential purposes only;
• In case the parties cannot agree on the above service price, it will be determined according to the service price framework prescribed by the Provincial People’s Committee where the apartment building is located.

The apartment building management unit shall specifically determine and collect apartment management and operation fees from owners and users based on the price determined according to the provisions of this Article.

Frequently Asked Questions

Who is the manager of apartment building operations according to current regulations?

According to Article 105 of the Housing Law 2014, the management and operation of apartment buildings are regulated as follows:

• For apartment buildings with elevators, this will be carried out by a unit with the functions and capacity to manage and operate the apartment building;
• For apartment buildings without elevators, the apartment building conference will decide to self-manage and operate the apartment building or hire a unit with functions and capacity to manage and operate the apartment building.

How to calculate apartment management costs

According to Article 31 of Circular No. 02/2016/TT-BXD amended and supplemented by Circular 06/2019/TT-BXD, depending on the type of apartment building, the way to calculate high-rise apartment management and management costs depends on the type of apartment building. Luxury apartments will be different:

• For apartments: Clearance area of ​​the apartment (x) management service price;
• For low-rise buildings: Used floor area (x) management service price.

Above is the section providing information to set up apartment building management training service business in Vietnam. If you have any questions, please contact Viet An Law for the fastest support. Thank you!