How far would you raise rent for a reliable Seoul tenant?

[bikesAndEcho]

I am reviewing the rent on a small multifamily home in Seoul. Comparable asking rent appears to be around ₩3,448,000, while the current tenant pays about ₩3,105,000.

They pay on time, care for the home and report maintenance problems before they become expensive. I could move closer to the asking level, but turnover could mean vacancy, refurbishment and deposit-related work. Would you propose a smaller increase to retain them, and how would you handle the conversation while complying with current South Korean notice and renewal rules?

 

[knitsAndAtlas]

I would not chase the full asking figure automatically. An advertised rent is not the same as a completed letting, and one vacant month can erase much of the gain. Work out your minimum justified increase, then give the tenant plenty of warning and explain it without presenting ₩3,448,000 as an ultimatum. Confirm the current local rules before naming an amount.

 

[wide_yard]

What is the lease renewal date, and how is the deposit structured? Those details affect both timing and the practical cost of a change. I would also compare genuinely similar units in the same area—condition, floor, size and deposit terms—not just a broad asking-rent figure.

 

[knitsAndAtlas]

Good questions. I would add the tenant’s maintenance history to the calculation. Early reporting has real value even if it does not appear in the rent comparison. Estimate vacancy, advertising, cleaning, repairs and your time, then divide that turnover cost across the period you expect a replacement tenant to stay. That gives you something more useful than the headline market gap.

 

[esme.snow]

The gap between ₩3,105,000 and the apparent market level of ₩3,448,000 is easy to see; what remains unclear is whether those asking rents are truly comparable after condition, deposit terms and maintenance history are considered. I would not make retention the sole objective, because leaving the rent unchanged indefinitely could force a sharper adjustment later.

There is a middle course between freezing the rent and closing the whole gap at renewal. A modest increase, supported by close comparables and followed by a clear review schedule, recognises the tenant’s reliability without allowing the rent to drift permanently. I would compare that option with the likely vacancy and turnover cost before deciding.

 

[kai_james]

Before contacting the tenant, I would make a one-page comparison: current rent, a few closely matched asking rents, known upcoming maintenance, likely vacancy time and turnover costs. Then verify the permitted increase, notice procedure and any renewal restrictions with someone familiar with the current South Korean rules. Keep deposit changes separate and clearly documented rather than bundling several moving parts into one vague proposal.

 

[knitsAndAtlas]

A sensible sequence seems to be: confirm the legal timing, narrow the comparable evidence, calculate the break-even vacancy cost, and then offer a modest adjustment rather than jumping straight to ₩3,448,000. I would also invite the tenant to discuss timing. If cash flow is the concern, a smaller increase with a clear future review may preserve the relationship without freezing the rent indefinitely.