Seongdong-gu Provides Text Notification Service 3 Months Before Lease Expiration

Seongdong-gu Rental Business Operators Receive Text Alert Service 3 Months Before Lease Contract Expiry... Preventing Rent Increases Over 5% Annually and Preempting Fines for Non-Compliance

A scene of submitting a lease contract change report after receiving a text notification service 3 months before the lease contract expiration.

[Asia Economy Reporter Park Jong-il] Seongdong-gu (Mayor Jeong Won-oh) conducts a monthly 'Lease Change Report Compliance Notice Text Alert Service' three months before the expiration of lease contracts for 12,475 registered private rental housing operators in the area.

This service provides tenants with advance notifications via mobile text messages about rent increase restrictions of no more than 5% per year, the use of standard lease contracts during lease agreements, and the obligations of rental business operators, aiming to prevent fines due to violations of these obligations.

The district first implemented the text alert service one month before lease contract expiration nationwide in September last year. Reflecting the reality that contract renewals and condition changes typically occur three months before expiration, the service was changed to send alerts three months prior to lease contract expiration starting May this year.

A district official stated, "Although the registration of rental business operators has recently increased significantly, violations due to lack of awareness of obligations have also risen, leading to an increase in subjects liable for fines."

For violations of rent increases exceeding 5%, fines are imposed as follows: 5 million KRW for the first violation, 7 million KRW for the second, and 10 million KRW for the third or subsequent violations. Violations of the rental obligation period can result in fines up to 30 million KRW.

Rental business operator Kim Jung-jae (68) said, "I did not know that increasing rent by more than 5% during the lease contract would be a violation, but after receiving the text notice informing me of the 5 million KRW fine, I was surprised. I am grateful that I can now report lease contract changes without violating obligations."

Jeong Won-oh, Mayor of Seongdong-gu, said, "By implementing the text alert service for rental business operators, we expect to prevent problems that may arise from unreported lease contracts through proactive administration rather than passive processing." He added, "We will continue to do our best to improve the quality of life for Seongdong residents through active administrative services for the community."