Key Money

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Definition of 'Key Money'

Key money, also known as key deposit, is a sum of money paid to a landlord by a tenant in addition to the security deposit and monthly rent. It is typically used to cover the costs of preparing the property for the new tenant, such as cleaning, painting, and repairs.

Key money is most common in Asian countries, such as Japan, China, and Hong Kong. In these countries, it is seen as a way for landlords to ensure that tenants will take good care of the property and stay for a long time.

Key money is not as common in the United States, but it can sometimes be found in high-demand rental markets. In these markets, landlords may charge key money in order to discourage tenants from moving out early.

Key money is a controversial practice. Some people believe that it is unfair to charge tenants extra money simply for the right to rent a property. Others argue that key money is a fair way for landlords to recoup the costs of preparing a property for a new tenant.

Ultimately, the decision of whether or not to pay key money is a personal one. There are pros and cons to both sides of the argument. If you are considering paying key money, be sure to weigh the costs and benefits carefully before making a decision.

Here are some additional things to keep in mind about key money:

* The amount of key money charged can vary significantly from one property to another. In some cases, key money can be equal to or even more than the security deposit.
* Key money is typically not refundable. This means that if you move out of the property early, you will not get your key money back.
* Key money is not always required. Some landlords may be willing to rent a property without charging key money.
* If you are considering paying key money, be sure to get the agreement in writing. This will help to protect your rights in case there is any dispute later on.

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