Ho Chi Minh City Plans Legal Framework, Columbia Freezes Permits, Maui Ban Debate Intensifies

Ho Chi Minh City Reverses Ban, Plans Legal Framework for Short-Term Rentals

• In February 2025, Ho Chi Minh City banned short-term rentals in residential complexes following complaints about noise, safety, and misuse of shared spaces.
• Homeowners, renters, and tourism experts pushed back, warning the ban would hurt tourism and reduce income for thousands of apartment owners.
• Authorities are now considering lifting the ban and developing a legal framework to regulate, not prohibit, short-term rentals.
• The Departments of Tourism and Science & Technology are drafting rules for host licensing, business registration, and room rental taxes.
• Plans include a coordination system between platforms and local authorities, fire safety standards, and use of big data to monitor compliance and market trends.
• Final policies supporting a regulated short-term rental market are expected by 2027, with a focus on integrating STRs into the city’s broader tourism strategy.

Snigdha’s Views

• HCMC’s policy shift reflects a wider regional trend. Like Tokyo, Seoul, and Kuala Lumpur before it, Ho Chi Minh City is moving from blanket bans to regulated frameworks as cities recognize the economic value of short-term rentals.
• In a tourism-dependent market like Vietnam, outlawing STRs triggered backlash from owners and industry stakeholders, highlighting the need for a more balanced, enforceable approach.
• Clear rules around licensing, taxes, and platform compliance could help elevate professional operators while phasing out unregulated, casual listings.
• If the framework includes support for safety, guest verification, and data sharing, it could open the door for licensed operators to scale responsibly within residential buildings.
• Major OTAs like Airbnb and Booking.com are invested in Southeast Asia’s growth, regulatory models that enable hosting (versus banning it) are more likely to gain industry support and resources.

Columbia Imposes 12-Month Pause on New Short-Term Rental Permits After Airbnb Shooting

• Columbia City Council has approved a 12-month pause on new short-term rental (STR) permits in residential areas, following a fatal shooting at an Airbnb in Elmwood Park.
• The moratorium does not apply to existing permit holders or renewals, only to new applications within city residential zones.
• Officials say the pause will allow time to reassess STR regulations, enforcement systems, and their overall impact on neighborhoods.
• Columbia’s current point-based penalization system meant to flag problem properties was criticized for failing to issue violations, even in neighborhoods with ongoing complaints.
• Neighborhood leaders and long-time residents voiced frustration over noise, trash, parking issues, and a lack of enforcement of the 2023 STR ordinance.
• Local STR operators, including veteran host Kandie Wright, emphasized that many hosts are responsible, safety-conscious neighbors, not absentee investors.

Snigdha’s Views

• Columbia’s decision reflects a recurring pattern. In U.S. cities like Dallas and New Orleans, high-profile safety incidents have prompted abrupt policy shifts, even when STR rules were already in place.
• Regulation means little without enforcement. Columbia’s point-based violation system failed to flag problem listings, sparking community frustration and fast-tracking the moratorium.
• Public perception can shift overnight: One tragedy can turn STRs from tolerated to targeted. Cities often pause growth not because rules don’t exist, but because they’re not visibly upheld.
• Operators must go beyond box-checking: Safety protocols, trash and noise management, and parking enforcement should be treated as part of the guest experience and a tool for neighborhood trust, not just compliance tasks.
• Proactive communication is now critical: Managers should regularly share contact information with local associations, document their compliance practices, and engage with city officials to show good faith.
• What happens in one city rarely stays there: Moratoriums and accountability narratives spread. Professional STR managers should monitor these developments closely, especially if they operate in multiple markets.

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Maui Weighs Controversial Plan to Phase Out 6,000+ Vacation Rentals Amid Housing Emergency

• Maui County is considering Bill 9, which would phase out over 6,000 vacation rentals operating in apartment-zoned areas to help ease the island’s severe housing crisis.
• Introduced by Mayor Richard Bissen, the bill aims to return these units to the long-term rental market, particularly after the 2023 wildfires destroyed more than 2,000 structures.
• Debate has been intense, with fire survivors and residents calling for housing justice, while out-of-state STR owners warn of economic losses and potential lawsuits.
• Proposed changes include delaying the phase-out until 2030, exempting timeshares, and requiring formal notification to affected owners. A three-year amortization period is also being considered.
• The University of Hawaiʻi’s economic study predicts the bill could deliver a decade’s worth of housing and reduce condo prices by up to 40%, but also result in $900M in lost annual visitor spending and 1,900 job losses.
• Maui condo prices have reportedly dropped up to 25% year-over-year, with increased listings and market uncertainty tied to the pending legislation.

Snigdha’s Views

• With a final vote expected later this year, Bill 9 could become a model for other tourist-heavy regions grappling with housing pressure and disaster recovery.
• Even if passed, the bill faces likely court challenges that could delay enforcement, but politically, the narrative has already shifted. Operators should prepare for change, not rely on legacy protections.
• STRs are no longer just seen as economic lifelines. In Maui, they’re increasingly framed as barriers to local survival and that perception may shape future regulations as much as legislation itself.
• Many of the 6,000+ STR units targeted by Bill 9 are in older condos ill-suited for long-term tenants. Forcing conversions could trigger mortgage defaults and accelerate Maui’s condo market decline, a trend already visible in dropping prices and rising listings.
• Access to housing is critical, but so is local economic resilience. STR managers must engage constructively, advocating for data-driven policies that reflect both resident needs and owner realities.