On April 21st, 2025, the Ha Noi People’s Committee issued Decision No. 33/2025/QD-UBND, setting the price framework for apartment building management and operation services, and providing a legal and financial basis for building management across the city. Following the decision, many residents and Building Owners’ Committees have raised questions about how the fees are applied, transparency, and their rights. This article summarises the key points to help everyone better understand apartment service fees in 2025.

Defining and calculating apartment service fees 

Apartment service fees are required payments made regularly by the owner. The fee is calculated in VND per square meter of the apartment's usable area, and covers essential services like security, cleaning, landscaping, and the operation of shared systems, including elevators, generators, and fire safety equipment.  

The fee rate is agreed upon in the sale or lease contract or approved at Owners' Committee meetings. 

Important notes:  

• According to Article 151 of the Housing Law 2023, service fees do not include fire and explosion insurance, the maintenance fund, parking fees, or utility costs (electricity, water, and fuel). They also exclude telecom, TV services, payments to the Owners' Committee, and other personal-use services. 

• Service fees and the 2% apartment maintenance fund are separate charges.

Read more: Structure of Apartment Service Fees 

Formula for calculating apartment service fees:

Service fees = Unit Price x Net Usable Area 

• Service fees unit price is determined by: 

- Before the first Owners' Committee meeting: The developer sets the price, and it must be clearly stated in the sale or lease agreement. 

- After the establishment of the Building Owners' Committees: The price is proposed by the Building Owners' Committees and the Management Teams, then approved at an Owners' Committee meetings. 

• The net usable area is the actual floor space inside the apartment, excluding the area of shared walls, columns, and technical shafts.

Read more: Differentiating the Building Owners' Committees & Management Team

Can apartment service fees change? 

Apartment service fees are not fixed and are often adjusted periodically, on an annual schedule, to reflect current conditions and maintain a high standard of service.  

Adjustments may be necessary due to several factors, including: 

• Variations in input costs: Regional minimum wages, electricity, water rates, or outsourced service costs. 
  

• Changes in the management agent or service quality upgrade requested by residents.

• A notable imbalance between revenues and expenses in the operating fund is observed in each financial period's summary. 

Important notes: Any adjustments to apartment service fees must be public and transparent, requiring approval from the Owners' Committee meetings. These changes are typically proposed by the Management Teams and the Building Owners' Committees. According to the Housing Law 2023 and Circular 05/2024/TT-BXD, a fee adjustment only goes through if over 50% of the owners present at the meetings vote in favour. For meetings to be considered valid, more than 50% of all owners must be in attendance.

Current regulations on apartment service fees 

• The Housing Law 2023 (Article 151): Stipulates that service fees are decided by the Owners' Committee meetings or by agreement between the involved parties. 

• Decree No. 95/2023/ND-CP (Article 59, Clause 3): Requires the provincial-level People's Committees to issue or adjust the service fee framework if costs fluctuate by 10% or more. 

• Circular No. 05/2024/TT-BXD: Fees should be based on agreements between developers, Building Owners’ Committees and Management Teams and reflect the quality and scope of services, but do not exceed any price ceiling set by the provincial People's Committee. 

Important note: In cases where regulatory legal documents stipulate different provisions on the same issue, the document with higher legal validity shall apply. 

Key facts from the recent decision by the Ha Noi People’s Committee  

Apartment service fees framework 2025 

These fees exclude revenue from premium services such as saunas, pools, cable TV, internet, and other luxury services. 

On April 21st 2025, the Hanoi People's Committee issued Decision No. 33/2025/QĐ-UBND regarding the framework of service fees for apartment building management and operation. This decision aims to establish a legal and financial basis for relevant parties. However, to properly understand and apply these regulations, residents should pay attention to these important points.   

Important notes: 

• Existing agreements prevail: The price ceiling does not apply if service fees have already been agreed upon in a sale, lease, or lease-purchase contract, or if they have been approved in Owners' Committee meetings. 

• When the framework applies: The framework serves as a reference for negotiating service fees for privately-owned housing.  It is also used in the event of a dispute over fees between the Management Teams and residents.  If the parties cannot reach an agreement, the rate within the city's official framework will be applied.

• Legal hierarchy: According to regulations, if there is a conflict between legal documents, the one with the higher legal effect takes precedence. Therefore, the Housing Law 2023 and its guiding decrees, such as Decree 95/2023/ND-CP, have higher authority than decisions from the Ha Noi People's Committee, and will be applied first.   

Savills recommends that apartment projects ensure transparency by openly publishing budget forecasts, financial statements, and clear periodic reports.  Choosing a reputable management agent helps guarantee stable and high-quality service.  Furthermore, residents are encouraged to actively participate in Owners' Committee meetings to stay informed, contribute opinions, and oversee financial activities, thereby fostering a transparent and civilised living environment. 

Conclusion 

A thorough understanding of apartment service fees and the relevant legal regulations provides Building Owners’ Committees, residents, and developers with a more comprehensive and practical outlook. A firm grasp of this information not only helps protect legitimate interests but also solidifies the foundation for residents to collaborate effectively with management teams, thereby contributing to a transparent, harmonious, and sustainable living environment. 

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