Can't Raise Rents, So Raise Management Fees and Usage Charges? ... Mandatory Reporting Starts Next April

Amendment to Private Rental Housing Act Approved
Fines Reduced for Failure to Report Lease Agreements

Starting in April 2027, when rental business operators report information related to lease agreements, they will also have to report management fees and usage charges, as well as how the amounts are calculated.

A property listing is posted at a real estate agency in Gangnam-gu, Seoul. Yonhap News Agency

The Ministry of Land, Infrastructure and Transport said that the Cabinet approved a partial amendment to the Enforcement Decree of the Special Act on Private Rental Housing at a Cabinet meeting held on October 20, 2026.

The amendment requires rental business operators, when reporting information about lease agreements, to report the amount or calculation method for management fees and usage charges in addition to the lease term, rent and loan amount. The measure is intended to curb practices such as raising management fees or charges for using optional appliances and furniture to get around limits on rent increases.

Going forward, rental terms will also have to be announced online. Until now, mayors and county and district heads have announced rental terms reported by rental business operators only in government gazettes.

Metropolitan cities and provinces will also be allowed to set, by ordinance, the rate at which rents can be increased in private rental housing complexes with 100 or more households. Information on enrollment in rental deposit guarantee programs will be available through the Rental Housing Information System (RentHome).

Fines will also be reduced in part, reflecting local governments' view that they are excessively high for minor violations, such as simply failing to report a lease agreement. The fines will be lowered from the current 5 million won for a first offense and 7 million won for a second offense to 3 million won and 5 million won, respectively.

The amendment to the Enforcement Decree of the Special Act on Private Rental Housing will be promulgated on November 27, 2026, and take effect on the date six months have elapsed after promulgation.

This content was produced with the assistance of AI translation services.