"Old Houses, No Reason for Landlords to Repair"... Harder Times for Ordinary People Under Lease Protection Act

Landlord-Tenant Conflicts Escalate, Tenants Growing Anxious
Many Repairs in Aging Homes... Tenants Feeling Pressured
Even as Landlords Use Tricks, Ordinary People "Lack the Means to Respond"

[Asia Economy Reporter Moon Jiwon] "There are many repairs needed for old houses over 30 years old, so the relationship with the landlord is important, but since the implementation of the three Lease Laws, conflicts have only increased." (Kim, 60s, tenant in Dobong-gu, Seoul)

The enforcement of the Housing Lease Protection Act, which includes the rent ceiling system and the right to request contract renewal, has rather intensified the housing insecurity of tenants in mid-priced houses in the outskirts of Seoul.

On the 13th, at the 'On-site Meeting with Tenants Affected by Real Estate Policies' held at a brokerage office in Chang-dong, Dobong-gu, Seoul, hosted by Song Seok-jun, chairman of the Real Estate Market Normalization Special Committee of the United Future Party, concerns from tenants and frontline real estate agents poured out.

At the site, there were continuous complaints that the rent ceiling system and the right to request contract renewal, introduced by the government to protect tenants, are instead fueling conflicts between landlords and tenants of mid-priced houses in the outskirts of Seoul.

Mr. Kim (Chang-dong, Dobong-gu) said, "There are many old houses built decades ago in this area, so during the stay, there are many repairs needed such as wallpaper, flooring, sinks, and window frames," adding, "Now, even if I ask for repairs due to problems, I worry that if the landlord is not satisfied, they might tell me to leave."

A representative of brokerage office A in the area said, "The monthly rent here is not very high, but if there is a 5% cap on rent increases, landlords have no reason to fix the house when it gets damaged," adding, "The damage caused by this inevitably falls on the tenants. Transactions will become more difficult in the future."

In particular, many tenants worried that landlords in the outskirts are more likely to refuse contract renewals citing their own residence. Compared to areas like Gangnam, the jeonse (key money deposit) prices are relatively low, and in the case of deposit-based monthly rent, the deposit is low, so landlords face less financial burden when returning the deposit.

A newlywed couple in their 30s, Mr. Hwang, currently living in a jeonse with a deposit of 120 million won, said, "At least Chang-dong is affordable, but I am worried that the rent here will continue to rise," adding, "Two years pass quickly. There is also the issue of our child's school, and I don't know which neighborhood we should move to next."

Representative Song said, "Applying the same rules without considering the circumstances of working-class neighborhoods creates another blind spot and suffering," adding, "Since landlords still hold a superior position, conflicts inevitably end with tenants being disadvantaged."

Some also raised concerns about various loopholes in response to the Lease Laws. Even if landlords refuse the legally guaranteed contract renewal, evict existing tenants, and secretly bring in new tenants, how could this be verified one by one? A tenant in the area pointed out the government policy, saying, "Working-class people who live day by day do not have the capacity to disclose who the landlord has newly brought into the house or legally challenge it."