A Study on the Management Stability in Private Rental Housing Market

Abstract

This study analyzed the factors affecting the actual residence period of tenants using limited data, based on the recognition that the supply of private rental housing can play an important role in establishing housing stability for the middle-income class. The most important result confirmed by the empirical analysis is that the larger the amount of Jeonse-Deposit, which can be understood as the size of total housing services, the longer the period of residence becomes in the private rental housing markets. From the perspective of private rental housing management, it is understood that an increase in the total rental fee (Jeonse-Deposit) will help bring stability to management because it means an increase in sales volume as far as other conditions are the same. On the other hand, among the same size of total rental fee (Jeonse-Deposit), the higher the proportion of the monthly rent is, the shorter the residence period becomes. The size of the deposit and monthly rent are both related to the creditworthiness of the lessor and the lessee, so it is very important to properly adjust the proportion of monthly rent and deposit. Results of the empirical analysis also show that corporate tenants have longer tenancy than individual tenants, and that as the size of private rental housing increases, the tenancy period decreases.