We are always fascinated by how different countries and cultures tackle the problem of their citizens no longer being able to afford to purchase a property, and instead, having to turn to renting their home.
South Korea’s answer has been an agreement called “JEONSE”, but what is it?
Jeonse is a system in South Korea where the renter does not pay the Landlord a monthly rent BUT instead, gives the landlord a large deposit upfront, this is often hundreds of thousands of dollars. The landlord gets to earn the interest from the deposit and returns the deposit to the tenant at the end of the tenancy.
If you have the money for the large deposit it sounds great but it’s not without risk even with an insurance policy to protect the renter in case the Landlord does not pay the money back or spends it!
Villa King leaves renters Millions of dollars out of pocket
A recent case in South Korea of a Landlord nicknamed “Villa King”, who owns over a thousand properties in Soel, could leave renters millions of dollars out of pocket.
Link to the full story reported in the Washington Post here
If you are renting in England or Wales don’t take unnecessary risks renting sign up at Very Wise Renter
- Safety Check your rental property
- On-going safety checks
- 24/7 access to a Solicitor
- 24/7 access to a Well-being counsellor
- Report any repairs or issues
- Enforcement of Landlord/Letting Agent’s legal responsibilities