The system of leasing

(Regular practice in leasing properties.)

(1) What are the costs tenant pays at the start of lease.

• Key money ( Appreciation to the owner for letting move-in to the property)
  The payment is to the owner same amount as 1 month of rental fee
• Deposit
  The payment is the same amount as 1 or 2 months rental fee(s)
• Commission
  The payment is the same amount as 1 month rental fee.

(2) What the owners have to pay at the start of lease.

• Commission
  The payment is the same amount as 1 month rental fee.

The owner uses key money received from the tenant to make a payment of commission

(3) Renewal of the contract

• Tenant pays the amount of 1 month rental fee for renewal of the contract.

(4) Explanation.

Standard term of lease is for 2 years. After 2 years, the tenant has a choice to renewal, by paying the renewal fee to the owner.

At the end of lease when the tenant moves out, property management inspects inside utilities and equipment to decide the payment allocation on repairs. If those utilities and equipment inside the property was damaged by the tenant, the owner has right to repair those damages by using the deposit received from tenants at the start of lease.