Detailed Management Fee Included... Improvement of Standard Residential Lease Contract Form

The Ministry of Justice and the Ministry of Land, Infrastructure and Transport have introduced an improved standard housing lease contract form that requires detailed breakdowns of maintenance fees of 100,000 KRW or more per month when signing monthly rent contracts.

On the 6th, the Ministry of Justice and the Ministry of Land, Infrastructure and Transport announced that as part of follow-up measures to the "Small-scale Maintenance Fee Transparency Plan," aimed at reducing unfair maintenance fee burdens through transparency in maintenance fees for one-room apartments, officetels, and the like, they will improve the standard housing lease contract form to specify detailed breakdowns of fixed maintenance fees of 100,000 KRW or more per month when signing monthly rent contracts.

Standard Lease Agreement Form for Housing prepared by the Ministry of Justice and the Ministry of Land, Infrastructure and Transport.

The newly improved standard contract form includes a separate section to record the amounts of each detailed item such as electricity charges, water charges, heating fees, and TV usage fees, in addition to general maintenance fees, when the maintenance fee is 100,000 KRW or more per month.

Until now, officetels and multi-family (one-room) units, where mainly young people such as university students and early-career workers reside, had no separate regulations regarding maintenance fees, making it difficult for tenants to obtain information in advance about how much maintenance fees would be charged when searching for listings or signing contracts.

Accordingly, the Ministry of Justice and the Ministry of Land, Infrastructure and Transport have promoted institutional improvements to enhance transparency in the rental market, such as requiring detailed breakdowns of fixed maintenance fees above a certain amount to be displayed in monthly rent listings and establishing standardized input functions on online brokerage platforms.

Han Dong-hoon, Minister of Justice, stated, "Following the addition of a maintenance fee item to the standard housing lease contract last November, we have further improved it to specify the detailed breakdown of maintenance fees, thereby enhancing transparency. We will continue to make efforts to protect citizens in the rental sector, including this revision of the standard contract."

Won Hee-ryong, Minister of Land, Infrastructure and Transport, said, "After visiting the field in early May to devise effective measures, we announced the 'Small-scale Maintenance Fee Transparency Plan' and have been fully committed to ensuring the follow-up measures proceed smoothly. We ask that the revised standard contract be actively utilized when signing monthly rent contracts to prevent opaque maintenance fees and block structures that are abused as a 'second rent'."

This content was produced with the assistance of AI translation services.