Suncheon City Council Member Kim Mi-yeon Proposes Urging Amendment to the Special Act on Private Rental Housing

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] The Suncheon City Council (Chairman Heo Yoo-in) urged the amendment of the Special Act on Private Rental Housing at the 3rd plenary session of the 2nd regular meeting of the 247th session held on the 21st.

According to Councilor Kim Mi-yeon, who proposed the urging resolution, the Special Act on Private Rental Housing was enacted in 2015, and in order to increase the supply of private rental housing, regulations such as tenant qualification restrictions, initial rent limits, and mandatory conversion to sale were abolished.

As a result, rental business operators can set the initial rent independently and increase the rent by 5% annually. Due to the abolition of tenant qualifications, speculative applications have increased, and ordinary citizens who actually need housing are forced to pay premiums to move into rental housing.

Furthermore, there is no obligation for rental business operators to convert to sale after the mandatory rental period expires. In the case of rental housing, there is no reporting obligation for the resale of lease rights, nor is it subject to capital gains tax, resulting in premiums being attached to lease rights of rental housing as well.

Councilor Kim proposed the following measures to resolve these issues in future amendments to the law: ▲ establish regulations restricting the resale of rental housing and penalties for violating rental business operators ▲ introduce a clause giving priority to current tenants when converting to sale after the rental period ends ▲ have the Minister of Land, Infrastructure and Transport set tenant qualifications and initial rental deposits for private rental apartments similarly to public rental apartments ▲ lower the annual rent increase limit from 5% ▲ include transactions of lease rights for private rental housing in the actual transaction reporting system.

Accordingly, the Suncheon City Council passed the urging resolution and called on the National Assembly and government to ▲ amend the Special Act on Private Rental Housing to enhance tenant rights and protect property rights ▲ immediately implement related systems and interdepartmental joint measures to stabilize the real estate market.

Meanwhile, the urging resolution passed at the plenary session will be sent to the President (Chief of Staff), Speaker of the National Assembly, Prime Minister, leaders of each political party, Chairperson of the National Assembly Land, Infrastructure and Transport Committee, and the Minister of Land, Infrastructure and Transport.

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