Seoul townhouse: raise rent or retain a reliable tenant?

[theo_cedar]

The turnover calculation changed my view more than the rent gap itself. Similar Seoul townhouses are being advertised around ₩4,924,000, while this tenant pays approximately ₩4,079,000, but even a short vacancy plus cleaning, repairs and reletting could absorb much of the difference.

The tenant has been dependable and has looked after the townhouse, so I am considering an evidence-based increase below the highest asking rent. Before proposing anything, I need to verify the applicable notice and rent requirements along with the deposit terms. How would you turn that into a repeatable review process that also records maintenance history and likely vacancy time?

 

[theo.reed]

Start by treating ₩4,924,000 as an asking figure, not proof of achievable rent. Compare genuinely similar townhouses by location, size, condition, deposit structure and contract terms. Then estimate what one vacant month plus cleaning, repairs and reletting would cost. A moderate increase that preserves reliability can outperform the headline market rent.

 

[otis_valuations]

How old are the comparable listings, and do they use the same deposit arrangement? In Seoul, two rents that look similar can represent different overall deals once the deposit is considered. I’d also want to know when the current agreement began and whether any previous increase affects what can lawfully be proposed now.

 

[otis_valuations]

For a consistent process, make a one-page worksheet: current rent and deposit, comparable properties, tenant payment record, maintenance caused by ordinary wear versus tenant damage, likely vacancy time, refurbishment estimate, and the minimum increase worth pursuing. Keep the legal timing and notice requirements as a separate item to verify before contacting the tenant.

 

[bikesAndEcho]

My preferred outcome would still be retention, but not if it means allowing the gap to widen without review each year. That can make the eventual conversation much more difficult.

Use comparable homes, deposit terms and the townhouse’s condition to support a reasonable figure. If those checks justify more than a token rise, propose it clearly rather than defaulting to the smallest possible increase. The highest advertisement alone is not enough evidence.

 

[bikesAndEcho]

That said, the conversation matters as much as the number. Give the tenant proper notice, avoid surprising them near a payment or renewal deadline, and allow time for a response. If the townhouse has unresolved maintenance items, deal with those before asking for more. A rent discussion lands badly when the tenant is still waiting for repairs.

 

[xavi_wren]

I’d calculate three scenarios: no increase and retention; a modest increase with retention; and full market asking rent with an allowance for vacancy, work and reletting. Include deposit return timing and available cash in the turnover scenario. Even without perfect estimates, this exposes how many months of the higher rent would be needed to recover one turnover.

 

[ada.heath]

Before sending a figure, confirm the current South Korean rules with someone familiar with Seoul leases, because the permitted increase, timing and notice may depend on the agreement and circumstances. Then put the proposal in writing with the effective date and any unchanged terms. Keep the same worksheet and supporting comparables for every review, but don’t force identical outcomes where tenant history or property condition differs.