In Korea, rental contracts are often signed for one or two years, meaning that tenants must decide whether to renew their lease or move to a new place when the contract expires. This decision directly impacts monthly expenses, moving costs, and housing stability. Foreign tenants may find this process even more complex due to unfamiliar regulations and local customs of Korean rental.
In this article, we analyze the pros and cons of renewing a lease vs. moving out and share practical cost-saving tips to help you make the best financial decision.
1) Renewing: Familiar Environment, No Moving Costs
Pros: Stay Without the Hassle of Moving
One of the biggest advantages of renewing a lease is avoiding the cost and effort of moving. Packing, hiring a moving company, and reinstalling furniture or appliances can be expensive and time-consuming. Additionally, staying in the same neighborhood allows you to continue enjoying familiar local amenities, transportation options, and social connections without disruption.
Cons: Rent or Deposit Increase Pressure
Landlords usually attempt to raise the rent when renewing a lease. In Korea, the Tenancy Protection Act limits rent increases to a maximum of 5% (for two-year contracts), but landlords may still try to negotiate higher rates. Foreign tenants unfamiliar with these regulations might unknowingly accept excessive rent hikes. To avoid overpaying, it’s essential to check both legal limits and market rates before renewing.
2) Moving: Finding a New Place, Dealing with Costs
Pros: Potential for Better Housing Conditions
If the rent increase negotiations fail, or if you’re dissatisfied with the neighborhood, moving could be the best solution. Additionally, if rental prices have dropped or if better housing options are available elsewhere, you might secure a larger, newer, or better-located apartment for the same price.
Cons: Moving Costs, Brokerage Fees, and Time Investment
Relocating comes with several financial burdens, including moving expenses (such as hiring a truck or professional movers), real estate brokerage fees, and initial deposit payments for the new rental. Additionally, searching for a new home, negotiating contracts, and handling the logistics of moving requires significant time and effort.
3) Cost-Saving Tips: Renewal Edition
(1) Negotiating Rent Increases
If your landlord proposes rent increases, don’t accept them outright. Instead, use concrete data for negotiations:
- Compare with market rates in your area to argue for a fair price.
- Highlight property wear and tear requiring maintenance costs.
- Leverage Korean Tenancy Protection Laws, which allow tenants to extend their lease for up to two years while capping the rent increase at 5%.
(2) Proposing Partial Repairs Instead of Rent Increases
If the landlord is open to property improvements, suggest a trade-off: “Instead of increasing my rent, could you replace the boiler or fix the mold issue?” This strategy creates a win-win situation—the landlord upgrades the property without losing a tenant, and the tenant enjoys better living conditions without higher rent.
(3) Avoiding Brokerage Fees
Renewing a contract directly with the landlord, without involving an agent, eliminates brokerage fees. However, if you need professional assistance with lease documents, a small administrative fee may still apply—but it’s far lower than the cost of hiring a real estate agent for a new rental.
4) Cost-Saving Tips: Moving Edition
(1) Negotiating Brokerage Fees
Even though real estate agencies charge legally regulated commission fees, negotiation is possible. Visiting multiple agencies and comparing listings may result in lower fees, as brokers compete to secure tenants. Make sure to check the legal maximum brokerage fees in advance to avoid overpaying.
(2) Choosing the Best Moving Time & Method
- Peak moving seasons (Feb–Mar, Aug–Sep) are expensive due to high demand. Scheduling your move for April or October could save money.
- Compare different moving options:
- Full-service moving (packing, delivery, unpacking) is the most expensive.
- Semi-packed moving (you pack small items, movers handle big furniture) is more affordable.
- Simple truck rental is the cheapest option, ideal for minimal belongings.
(3) Exploring Direct Contracts or Online Rental Platforms
Directly renting from the landlord without an agent avoids brokerage fees, but be cautious of scams. Always verify property documents such as land registry records and consider using contract notarization. Apps like Zigbang and Dabang now allow direct landlord-to-tenant transactions, making the process more transparent.
5) Key Decision Factors: When Is It Better to Renew?
(1) If Market Rent Has Increased and Your Current Rent Is Still Low
If rental prices in your area have risen, your current rent may still be a better deal—even with a slight increase. Compare deposit and rent hikes with costs at other nearby properties.
(2) If Moving Costs Are Too High
Moving expenses—including moving services, brokerage fees, and early contract termination penalties—can be substantial. If the cost of relocating surpasses the total rent increase over the next year, renewing could be the more economical choice.
(3) If You’re Happy with the Neighborhood and Have Easy Commutes
If you enjoy the current surroundings, local conveniences, and a short commute to work or university, staying put reduces stress while saving time and transportation costs.
6) Case Study: International Student “M” and His Decision
M, an international student in Seoul, had been renting a one-room apartment on a D-2 visa for ₩500,000/month with a ₩5,000,000 deposit. When his lease was up for renewal, the landlord suggested raising the rent to ₩550,000/month.
M calculated potential moving costs:
- Moving fee (~₩300,000, for a small-truck service)
- Real estate commission (~₩200,000)
- Possible financial strain from deposit changes
Even though the rent increase meant an extra ₩60,000 per year, moving would cost at least ₩500,000 upfront. After considering these factors, M chose to renew his lease, successfully negotiated minor repairs (bathroom + wallpaper refresh), and ultimately felt satisfied with his decision.
Conclusion: Choosing Stability vs. New Opportunities
When deciding between renewing your lease vs. moving, consider the economic, time, and convenience factors.
- Pros of renewing: No moving costs, familiar neighborhood, stable routine
- Cons of renewing: Potential rent hikes
- Pros of moving: Potential for better housing, location improvements
- Cons of moving: High upfront costs, time-consuming process
To make the optimal choice, compare rent increase + possible negotiations vs. moving costs + new rent rates. Whether you’re a local or a foreign tenant, Korean Tenancy Protection Laws safeguard your renting rights—so don’t overlook potential cost-saving opportunities.
By strategically assessing this decision, you can reduce unnecessary expenses, negotiate better deals, and maintain a comfortable living environment in Korea. Rather than simply accepting rent hikes, leverage your rights and explore alternative solutions. An informed approach will save both money and hassle, allowing you to keep your housing situation secure and affordable.
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