Rent increase or tenant retention for a ₩1,994,000,000 Seoul multifamily?

[bikesAndEcho]

An empty month, minor refurbishment and deposit administration could easily outweigh part of a rent increase, so I do not want to treat the highest listing as the obvious target. This Seoul small multifamily is valued around ₩1,994,000,000, with the current rent at ₩7,578,000 against advertised comparables near ₩8,620,000.

The existing tenant has a strong payment record and keeps the property in good condition. I am leaning towards a smaller, clearly explained adjustment, but first need to confirm that the listings use comparable deposit and lease terms. What sequence would you follow for checking South Korean notice and renewal requirements, estimating turnover costs and then approaching the tenant?

 

[theo_cedar]

A dependable tenant has measurable value. The gap is ₩1,042,000 per month, so even one vacant month at the higher rent would consume more than eight months of that extra income, before refurbishment or letting costs. Assuming the figures are directly comparable, I would discuss a smaller increase and explain how it was reached rather than demand the full asking figure.

 

[asha.reed]

Are those asking rents genuinely comparable on deposit, condition, included charges and lease structure? In Seoul, a rent figure without the accompanying deposit terms may give a misleading comparison. I would also clarify whether ₩8,620,000 is an achieved figure or merely an advertisement, and whether both numbers cover the whole property or equivalent units.

 

[NimblePlan]

I agree about checking comparables, but I would not let vacancy arithmetic decide everything. Keeping rent materially below the local level year after year can make the eventual adjustment harder for both parties. Maintenance history matters too: a careful tenant reduces wear, but postponed owner-funded work should not be treated as a tenant benefit or used to justify the increase.

 

[amber_reed]

I would prepare three numbers: the present rent, a defensible like-for-like market range, and the minimum increase that makes the review worthwhile. Then confirm the applicable notice, renewal and increase restrictions locally before discussing figures.

Approach the tenant early, acknowledge the payment and care history, and present one moderate proposal in writing. If appropriate under the lease and local rules, you could also discuss alternatives involving the timing of the increase or the deposit rather than treating the headline monthly rent as the only variable.

 

[lookTheRiver]

Also calculate the full turnover scenario before deciding: likely vacancy time, cleaning or repairs, administration, and when the existing deposit must be returned or reconciled. Compare that with the extra rent over the next renewal period, not just one month. If the moderate increase still wins without assuming a perfect replacement tenant, it is easier to defend as a business decision rather than an attempt to chase an asking price.