Problems of revised Housing Lease Protection Act and the solution

After the Housing Lease Protection Act is revised, the problems of revised Act was criticized by many people. At first, adoption of the tenant’s right of request for renewal of contract makes supplies of Chonse to reduce because existing tenants exercise the right of request for renewal of contract retroactively. In addition, when the landlord sells the house with the existing Chonse contract, the new owner of the house by buying the house cannot against with the existing tenant’s exercise the right of request for renewal of contract. Therefore, the landlord has difficulty to sell the house if the house has existing Chonse contract so they choose to live the house by themselves gradually. As the result, the portion of monthly rent is increased in the market and vicious circle which are increase of deposit money of Chonse, monthly rent fee and the tenant’s hosing expense is caused. Next, when a lease agreement is renewed, deposit may be increased within 5%. Therefore, the deposit money rises sharply because the landlord decides the deposit money when new lease agreement is made considering inflation rate, depreciation of the house and the increase ration comparing with the neighborhood during 4 years which are the period the landlord cannot increase the deposit money. These problems of revised Housing Lease Protection Act are caused from the application the Act to the every house of whole country all at once. Designation of region where the resident stability of tenant is required relatively strong and range of economical weak who cannot pay the increase deposit money and rent fee is required. When the Act is applied only to lease agreement which are made in the region and with the range of economical weak, the problems can be solved. For this limitation of the application of the Act, the following solutions are suggested in this article referring to the legislation cases of USA, England and Germany. First, deciding the standard of the area where the supply of the high quality house is insufficient and rent fee is increased sharply is required for every certain period. The Act needs to be applied only to these areas. Second, excluding application of limitation on increase of deposit money when the agreement is renewed or new agreement is made can be considered when huge improvement cost is invested into the house by the landlord. Third, excluding application of the Act when the agreement for the house where the rent fee is high or with the tenant who household income is over the certain standard can be considered. Forth, excluding application of the Act into the house where is vacant for certain period and evaluating the house again for every certain period can be considered. Fifth, providing the tenant who are regulated by the Act with a tax favor can be considered. Sixth, Reflection of inflation, improvement cost of the house needs to be considered when the limitation on increase of deposit money or rent fee is decided.