Service Charges for Management and Operation of Apartment Buildings

Article 151 of the Law on Housing 2023 stipulates the Service Charges for Management and Operation of Apartment Buildings as follows:

1. The determination of service charges for the management and operation of apartment buildings must ensure publicity, transparency, and be based on the scope of work to be managed and operated, as well as the services used for each type of apartment building.

2. The service charges for the management and operation of apartment buildings do not include the costs of fire and explosion insurance, maintenance funds, parking fees, costs of fuel, energy, water supply, television services, telecommunications, remuneration for the Apartment Building Management Board, and other service costs for the private use of the apartment building owners or users.

The service charges for the management and operation of apartment buildings shall be determined in Vietnamese currency and calculated per square meter of the apartment’s usable area or other usable areas within the building.

3. For apartment buildings with multiple owners, the service charges for management and operation are determined as follows:

a) Where the first General Meeting of the apartment building has not yet been convened, the service charges shall be implemented in accordance with the agreement specified in the house purchase, lease-purchase contract;

b) Where the General Meeting of the apartment building has been convened, the service charges shall be agreed upon and jointly decided by the management and operation unit and the General Meeting of the apartment building.

4. For apartment buildings with a single owner, the service charges for management and operation shall be determined in accordance with the agreement between the owner and the apartment users under the house lease contract; in cases where the apartment building is public property, the service charges shall be implemented in accordance with Clause 7 of this Article.

5. For apartment buildings with mixed-use purposes, the service charges for management and operation applicable to the business and service areas, as well as the privately-owned car parking areas, shall be determined as follows:

a) The service charges for management and operation applicable to business and service areas shall be agreed upon by the parties based on the actual operational situation of the business area and the location of the apartment building;

b) The service charges for management and operation applicable to privately-owned car parking areas shall be agreed upon by the parties and may be lower than the service charges applicable to apartments within the same building.

6. For apartment buildings solely used for residential purposes, the service charges for management and operation applicable to privately-owned car parking areas shall be implemented in accordance with Point b, Clause 5 of this Article.

7. The Provincial People’s Committee shall be responsible for issuing the price framework for service charges for the management and operation of apartment buildings to be applied in the following cases:

a) Collection of management and operation expenses for apartment buildings classified as public property within the locality;

b) Serving as a reference basis for the parties when negotiating service charges for management and operation for apartment buildings not classified as public property, or in cases of disputes regarding service charges between the management and operation unit and the owners or users of the apartment building; where the parties cannot reach an agreement, the service charges shall be applied according to the price framework issued by the Provincial People’s Committee.

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