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| Think Monthly Rent Is Safe? One Mistake Can Cost You Millions

“Jeonse feels risky… Monthly rent should be safer, right?” 

 That’s what many first-time renters believe. Because the deposit is smaller, they assume the risk is lower. But the truth is different.

 Without proper knowledge, even a monthly rent contract can lead to serious financial loss. Disputes over rent settlement when moving out, sudden “10% VAT excluded” demands, hidden management fee increases, agency fraud, and long-term repair reserve refunds most tenants never claim.

 These issues happen more often than people think. Today, we summarize the six essential points every renter must check before signing a monthly rent contract. 

 Spend just five minutes reading this. It might protect your savings — and your peace of mind.

| One Clause Can Prevent Rent Settlement Disputes

One of the most common conflicts in monthly rent contracts occurs when the tenant moves out early. Imagine paying 700,000 KRW per month in advance. If you move out after staying only 15 days, should you pay the full month? Without a clear clause, disputes are very common. The solution is simple: “In case of early termination, the monthly rent shall be settled on a daily basis.” With this clause, the calculation becomes clear and fair. For example: 700,000 KRW ÷ 30 days = 23,333 KRW per day 15 days stay = approximately 350,000 KRW For young renters and first-time tenants, this clause is not optional — it is essential.

| The “VAT Excluded” Trap – An Extra 10%

Just before signing, some tenants hear this: “The monthly rent is 600,000 KRW, but VAT 10% is separate.” This often happens when the landlord is a corporation or a registered business owner, especially in officetels or commercial buildings. Always ask clearly: “Is VAT included in this rent?” Make sure it is written in the contract. 600,000 KRW including VAT or 600,000 KRW + VAT excluded The difference may seem small, but over two years, it can exceed 1 million KRW. Always confirm before signing.

| Management Fee Increase Trick – Protect Yourself

Sometimes landlords keep the rent the same but significantly increase the management fee. For example: Rent stays at 600,000 KRW, but the management fee increases from 100,000 KRW to 180,000 KRW. Legally, it may not look like a rent increase, but your real monthly burden rises sharply. To prevent this, add a clause such as: “The management fee shall not increase more than 5% compared to the previous contract.” Tenants also have the right to request a detailed breakdown of management fees. Always ask for itemized details before agreeing.

| Photos & Videos Before Move-In Protect Your Deposit

When moving out, disputes often begin with this sentence: “It was already broken.” “No, it was damaged during your stay.” Without evidence, tenants often lose part of their deposit. Before moving your furniture in, take detailed photos and videos of the empty property. Check ceilings, corners, bathroom tiles, kitchen cabinets, boiler display, and built-in appliances. If you find any defect, notify the landlord immediately in writing. This small action can protect hundreds or even thousands of dollars in deposit.

| Is This the Real Owner? Always Verify

One of the most dangerous situations in rental fraud is signing a contract with someone who claims to represent the landlord. Always verify three things: 1. Obtain the official property registry and confirm the owner’s name. 2. Check the ID of the landlord and match it with the registry. 3. Transfer the deposit only to the owner’s bank account. Never transfer money to a third-party account. This simple verification process protects your entire deposit.

| Don’t Forget the Long-Term Repair Reserve Refund

If you lived in an apartment or officetel, you likely paid a “Long-Term Repair Reserve” every month. Legally, this cost is the landlord’s responsibility. Tenants usually pay it first as part of the management fee and claim it back when moving out. Over two years, this amount can exceed 1 million KRW. Before moving out, request a payment statement from the management office and ask the landlord for reimbursement. If you don’t ask, you usually don’t receive it.

Final Checklist Before Signing a Monthly Rent Contract

• ✔ Daily settlement clause included?
• ✔ VAT included or excluded clearly written?
• ✔ Management fee increase limited?
• ✔ Photos and videos taken before move-in?
• ✔ Property registry and bank account verified?
• ✔ Long-term repair reserve refund planned?

Monthly rent contracts may seem small, but the financial impact can be significant. Always review before signing.

Conclusion | Five Minutes Before Signing Can Save Millions

A monthly rent contract may seem small, but small mistakes can lead to significant financial loss. One clause, one confirmation about VAT, a few photos, and a registry check — these simple actions protect your money. Before signing, review the six key points again. The more you know, the safer you are. If this guide was helpful, share it with someone preparing to rent their first home.