[Report] College Students Paying Rent for Empty Rooms... What Will Happen to the Burdensome Studio Apartments?

University areas' one-room apartments empty due to online classes
Single rooms become burdens... Students living away from home return to family homes
One-room landlords suffer from lack of inquiries
Legal experts say "Refund or reduction requests possible but refunds legally difficult"

On the afternoon of the 8th, a one-room apartment area near Ewha Womans University in Seodaemun-gu, Seoul. Flyers seeking tenants were posted on utility poles, but due to the impact of the novel coronavirus infection, the university area appears quiet. Photo by Seulgi Kim, intern reporter sabiduriakim@asiae.co.kr

[Asia Economy Reporter Seunggon Han, Intern Reporters Junyoung Min and Seulgi Kim] "I don't even go to school, but I still pay my studio apartment rent on time. It's really frustrating."

The worries of students who rented studio apartments near universities are deepening. Due to the impact of the novel coronavirus disease (COVID-19), universities nationwide have switched to online lectures, causing the purpose of the hard-to-find studio apartments for commuting to disappear. However, since they cannot cancel their lease contracts, students are suffering silently.

On the afternoon of the 8th, University student A, whom we met in a studio apartment-dense area near Ewha Womans University in Seodaemun-gu, Seoul, said, "I signed a lease for a studio apartment near the school last year," and added, "It's a waste to just leave it empty, so I'm living there."

The area where A's studio apartment is located has a high demand for student housing, but student movement has noticeably decreased. Ji Haechang (73), a real estate agent near Ewha Womans University, explained, "Even the popular studio apartments around here see almost no student movement because offline classes are not held."

A boarding house sign is hung at the entrance of the one-room apartment area. However, only a few landlords who came to repair the facilities and a small number of students were seen in the alley around here. Photo by Min Junyoung, intern reporter mjy7051@asiae.co.kr

Seong Yukyung (25, pseudonym), a student at Yonsei University, also expressed dissatisfaction, saying, "I signed a contract with a deposit of 40 million KRW, monthly rent of 500,000 KRW, maintenance fee of 50,000 KRW, and separate utility bills," and added, "There is no talk of rent reduction, and since the contract runs until May, I am just staying in the studio apartment."

He continued, "Two tenants in the same building had to move out urgently because their rent was reduced or refunded."

According to the '2019 Seoul Studio Apartment Monthly Rent Trend' released by the real estate information platform Dabang Data Analysis Center, in August 2019, the monthly rent for studio apartments near Seoul National University of Education and Hongik University reached up to 570,000 KRW based on a deposit of 10 million KRW. Yonsei University was around 510,000 KRW, and Hanyang University about 470,000 KRW. Paying such high rent is burdensome, and since they cannot properly use the apartments, the studios have become a real nuisance.

In fact, according to a survey conducted by the National University Student Council Network on March 3 regarding cases of class disruption in university areas, out of 6,261 students, 1,920 (30.7%) cited 'housing instability' as damage caused by the delayed semester start. They have to pay unnecessary rent or suffer from adjusted dormitory move-in dates.

Hyun Youngjin (21, pseudonym), a student at a university in Jeonju, Jeollabuk-do, signed a lease for a studio apartment but is currently living at his family home. He signed a contract for 300,000 KRW per month including maintenance fees, but since he attends online lectures from home, he is paying rent for an empty room. He appealed, "I want to get at least part of the rent refunded, but I don't think they will refund it. If there is a related law, I want to use it as a basis to get a partial refund."

The one-room apartment area near the university, which should be bustling with students in the afternoon, is quiet without a single sign of life. Photo by Seulgi Kim, Intern Reporter sabiduriakim@asiae.co.kr

Studio apartment landlords are also frustrated with the situation. Mr. C, who rents out studio apartments in Sinchon, expressed concern, saying, "We don't even get inquiries from students about moving in, and if the students who are here start asking for refunds, it will be difficult." He cautiously added, "No students have contacted us yet asking for rent refunds, but we are worried that conflicts might arise because the economy is tough."

Given the situation, some university dormitories have decided to refund dormitory fees. Ewha Womans University dormitory announced on the dormitory website on the 2nd that "the university has decided to conduct remote classes (online lectures) for the entire first semester of 2020," and "the dormitory fees paid for the first semester of 2020 will be refunded in April."

They plan to allow limited move-ins only for majors requiring unavoidable face-to-face classes such as experiments, practical training, and skills practice. Yonsei University also announced that students who moved in during the first move-in days on the 14th and 15th of last month will receive a one-week dormitory fee refund.

As some universities announced dormitory fee refund policies, university students are hopeful, saying, "Isn't it possible for studio apartment landlords to refund rent as well?"

Regarding this, the Korea Legal Aid Corporation responded, "It is practically difficult to get studio apartment rent refunded." A representative explained, "A studio apartment contract is a lease agreement between the landlord and tenant with a fixed contract period. Although you can request a rent reduction from the landlord due to the special circumstances caused by COVID-19, legally getting a refund is difficult."

However, regarding some universities' dormitory fee refund policies, they explained, "Since the school could not hold classes and on-campus activities were blocked, students can legally demand refunds."