[Q&A] Landlord demands 30% rent increase and threatens eviction. Is there a legal cap?

The Dilemma

"My landlord suddenly claims market prices went up and demands a 30% rent increase, threatening to evict me if I don't agree. Isn't there a legal cap on how much they can raise the rent?"

The Legal Shield: The 5% Rent Increase Cap

The short answer is YES. Under the Housing Lease Protection Act, there is a very strict limit on how much a landlord can increase the rent or deposit. This is widely known as the '5% Cap Rule'.

1. When does the 5% Cap apply?

This protection is triggered when you exercise your 'Contract Renewal Request Right' (2+2 Rule). If you decide to stay for another two years, the landlord cannot legally increase the rent or deposit by more than 5% of the existing amount.

2. What if I already signed for a 30% increase?

Even if the landlord pressured you into signing a new contract with a 30% increase, if you were exercising your renewal right, the portion exceeding 5% is legally invalid. You have the right to demand a refund for any excess amount paid, or you can refuse to pay the extra from the start.

The Landlord's Eviction Threat

A landlord cannot evict you simply because you refuse an illegal 30% increase. As long as you have properly exercised your renewal right, your residence is legally protected for the next 2 years. Threatening to evict a tenant for following the 5% cap rule is a violation of the Act.

How to Properly Exercise Your Renewal Right

To gain this 5% protection, you must notify the landlord of your intent to renew between 6 months and 2 months before your lease expires.

• Action: Send a clear message (KakaoTalk, Email, or Content Certification) stating: "I am exercising my Contract Renewal Request Right under the Housing Lease Protection Act."
• Effect: Once sent, the lease is automatically extended, and the 5% cap is locked in.

Exceptions: When is 30% Legal?

The 5% cap does not apply if:

• You are signing a brand new contract for a house you haven't lived in before.
• Both parties voluntarily agree to a new lease without using the formal Renewal Request Right (though we advise foreigners to always use their right first).

Why Hoam Law Firm?

Many landlords assume foreign tenants don't know about the 5% cap. Hoam Law Firm provides formal legal representation to call out these illegal demands. We verify the calculations and send certified legal responses to landlords to stop eviction threats and keep your housing costs stable.

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