Korean Job Discussion Forums

[jondepoer]

**UPDATE: I'll leave the original message intact - scroll to p. 3 if you're interested in the update**

Hello,

Does anybody have experience dealing with a landlord who refuses to return key money? What legal recourse do I have?

I made a legal contract for 12 months in the presence of a real estate agent. 12 months is up, and I have already put a deposit on another apartment. Now the landlady says she will not return the key money until another tenant has been found for my apartment.

If I leave before another tenant has been found, she has threatened to deduct the rent from my key money for each month that it is empty.

I mean - what the hell!! This can't possibly be legal! My employer has even suggested that I should lose my 1,000,000 deposit on the new place, and continue to live in the old place, letting the landlord deduct the rent from my key money.

How can this woman possibly think that she can simply take my 10,000,000, even though the contract is finished? What can I do about this? I'd really like to hear from any experienced expats.

[highstreet]

I'm in the same situation sort of.

My contract ran out in Nov. of last year and I've been waiting for a new person to move in so that I can get my deposit back and find a new place.

I've heard that technically it's illegal to hold your deposit after the contract date.

But it seems the norm here in Korea, to not move out until a new tenant moves in. This is what my Korean friends and their parents tell me.

I suppose there could be a clause in your contract about this.

[byrddogs]

This is the main reason I always took provided housing while there. I couldn't bring myself to entrust that my key money would be returned. There is none of that crazy stuff here in Shanghai. I was let out of my lease 4 months early just by agreeing to forfeit a 1 month rent deposit. I hope things work out for you getting the full return and you don't pay squat extra.

[jondepoer]

Holding the deposit, maybe. It's slightly understandable that she doesn't want to pay out of her own pocket, and instead just "transfer" the new deposit to me. But threatening to deduct the rent from it? If I just move out, and my contract is complete, that's theft, right?

Where else in the (developed) world would people be able to get away with this garbage?

[jrwhite82]

Only Korea has shady landlords? Really?

[jondepoer]

Does anybody else have some advice? I want to consider all options.

[The Floating World]

[r122925]

When did you notify the landlord that you planned to leave? My understanding is that you must notify the landlord at least one month before the end of the contract, likewise the landlord must notify you at least one month in advance if he wants you to leave or plans to raise the rent. If no contact was made then the term of the original rental agreement is automatically renewed, in your case for an additional year.

So basically, if you didn't properly notify her your landlord may be in the right on this situation.

If you did everything you were supposed to then hopefully the real estate agents will back you up. If they won't, it may be worth getting a lawyer involved... problem there is that the lawyer is going to take a decent chunk of that 10 million when you get it back. Certainly makes more sense for much larger deposits though.

Another issue is that if you do persue this through the courts that it may very well take forever. I know a Korean couple involved in a dispute with the landlord over a deposit. The process started nearly 2 years ago. They just recently had a judgment in their favor, but they still haven't got the money back.

The other option is to play the landlord's game. Try to help find someone else to take the apartment and get your money back. As much as this sucks, it may be the easiest/fastest option.

[NYC_Gal 2.0]

Yikes. While I've heard that holding the money until a new tenant moves in is common practice, she can NOT deduct rent, because you won't live there and your agreement was for the contracted amount of time.

My husband's friend was able to get our key money down from 5 to 1 million (Incheon, not Seoul) with a slightly higher rent per month. We figured it was safer that way. We'll also have our last month's rent and utilities deducted from our key money, so, in the event that they try to hold it, it won't really be that bad. That, and there's been some wear and tear that they'll likely over-charge us for.

I wish you the best of luck!

[Adam Carolla]

[Savant]

Landlords who can only repay Key Money to a previous tenant until the next tenant pays their Key Money, should be legally prevented from renting out further properties. Or at least monetary penalties should be applied for each day a landlord fails to repay Key Money.

It's why I think the housing/rental situation in Korea is so precarious.

[jondepoer]

I found some other threads talking about pro-bono (free) legal services for foreigners. Any personal experience with this? I think a call from a lawyer might be enough to scare the money out of her.

[jrwhite82]

[jondepoer]

Please stop taking over my thread. Start your own. I'm just looking for help. Thanks to those who have offered advice.

[Adam Carolla]