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  • toady
  • Explorer

    • 6

    • August 12, 2010, 06:08:57 pm
    • New York
question about key money system in korea
« on: September 05, 2011, 10:46:26 pm »
Hello,

In Korea, when signing a one-year housing contract, is it normal to pay one's key money AND the first months rent at the same time?

For example, say you found a house for 10 million key money + 500,000 monthly rent. When you first signed the contract and moved into that house, would you be responsible for paying upfront a total of 10,500,000 won OR would you just pay 10,000,000 won and then the rent AFTER you had lived there for month?

Thanks


  • Koreak
  • Super Waygook

    • 405

    • November 13, 2010, 08:15:43 am
    • South Korea
Re: question about key money system in korea
« Reply #1 on: September 06, 2011, 05:50:35 am »
From my experience, once you pay the key money, you can choose a day to move in.  The day you move in, you pay the rent for that month.  I have always paid the rent to live in the apartment for the month, not live in the apartment for a month then pay the rent.


  • cmgarlan
  • Waygookin

    • 24

    • July 11, 2010, 07:35:28 pm
    • 대전
Re: question about key money system in korea
« Reply #2 on: September 06, 2011, 08:02:10 am »
From my experience, once you pay the key money, you can choose a day to move in.  The day you move in, you pay the rent for that month.  I have always paid the rent to live in the apartment for the month, not live in the apartment for a month then pay the rent.

Exactly, like this.  My stuff was weird and I actually paid the 보증금 (key money) on the day I moved in as well, but definitely the first month's rent.  It makes sense, you pay ahead of time to secure a month to live there.  You don't live there then pay.  It's like this in the states too.  Is it different in other countries?


Re: question about key money system in korea
« Reply #3 on: September 06, 2011, 09:02:32 am »
It depends. It can happen this way....

From my experience, once you pay the key money, you can choose a day to move in.  The day you move in, you pay the rent for that month. 

...or it can happen that you pay your deposit (key money, if you must), move in, and your first month's rent becomes due exactly one month after you move in/the contract starts. Obviously, that means that at the end of the contract, you'll be paying the final month's rent on the very last day.

Incidentally, the former way of doing it is known as 전불 (advance payment) in Korean, and the latter is 후불 (deferred payment). I once moved from an apartment with 후불 to one with 전불, which meant paying two lots of rent on the same day  :o but I knew this was happening and it still comes to the same amount of money paid in the end.



  • Koreak
  • Super Waygook

    • 405

    • November 13, 2010, 08:15:43 am
    • South Korea
Re: question about key money system in korea
« Reply #4 on: September 06, 2011, 09:27:34 am »
A note for people doing the 전세 system (pay a large amount of key money).  You can do this yourself, by that I mean find an apartment and give the landlord your money with out the use of realtors.  However, if you want to be safe, go through a realtor that will offer you insurance.  They can usually give you about 60% of your key money deposit back incase the landlord skips town.  Also, the realtor should also give you a credit report of the landlord.  If the landlord is in serious debt, I would be hesistant to hand my money over.  It is entirely possible that he will take your money to pay off someone else's money.  Then when your contract is finished, the landlord doesn't have the money and might refuse to pay you.  In this case, you'll have to contact lawyers and all that nasty business.

Also, if the landlord doesn't give you your money, DO NOT move out.  Some slimy landlords have won court cases where the tenants have moved out and the landlords said they paid the tenants in cash.

Just be safe fellow waygooks.  It is a cool system if you have the money, and not paying rent is pretty awesome.  But there are some slimy business people out there.


  • seandon
  • Explorer

    • 5

    • October 04, 2010, 12:52:04 pm
    • seoul
Re: question about key money system in korea
« Reply #5 on: September 06, 2011, 09:40:01 am »
you have to pay a month up front. i have been here four years and it has always been like this.  some landlords will then give you a month after the expiration of your contract to locate a new place, but you still have to pay for it of course.


Re: question about key money system in korea
« Reply #6 on: September 06, 2011, 09:48:53 am »
If the landlord is in serious debt, I would be hesistant to hand my money over. 

I quite agree but I'd go a bit - no, a LOT - further than that and say that if the landlord is in serious debt I wouldn't touch it with a 50 foot pole.

If you're doing 전세 (where you put down a massive deposit of 60-80% of the value of the property and pay zero rent) you really should do your due diligence on the landlord's and the property's financial background and then some. In fact, I'd always check these things out even for a 월세 contract. 10 or 20 million is still money that you don't want any problems getting back at the end.

전세 can be a very good deal for some people. But I really wouldn't recommend even considering it unless you were intending to be in Korea pretty long term.