Abstract

The purpose of this study is to examine the current status of the practice of levying management fees by landlords on tenants. Contrary to the regulated maintenance fees imposed by management entities as specified in the “Multi-Family Housing Management Act,” there are currently no regulations regarding maintenance fees imposed by landlords. Therefore, in non-apartment residences without management entities, maintenance fees are imposed arbitrarily by landlords. The widespread practice of imposing what is often referred to as a “blind maintenance fee” leads to various problems, including poor management, a lack of transparency, and a portion of the rent transferring towards increased maintenance fees. Especially, following the amendment of the House Leasing Act, the transfer of rent to management fees is becoming increasingly severe for purposes such as the weakening of the right to request contract renewal, avoidance of lease registration, and tax evasion of rental income. This issue is also prevalent in publicly supported housing types such as Jeonse Rental Housing and Registered Private Rental Housing, causing a reduction in the effectiveness of public support policies. It is estimated that there are 4.296 million households potentially affected by this issue. To address this, the “Housing Lease Protection Law” should establish provisions related to maintenance fees, specify the composition and calculation of maintenance fees and usage fees, principles of burden, duties of keeping and accessing records, etc.