Tenant Screening Proposal: Interviews & Internships

Within the existing unclear system, there's no way to determine if a former prisoner or someone with poor credit is moving into my house...

Within the existing unclear system, there's no way to determine if a former prisoner or someone with poor credit is moving into my house.

On the 12th, a petition entitled “Implementation of a Tenant Interview System to Avoid Damage Caused by Unreliable Tenants” was uploaded to the National Assembly's public petition platform. It stated, "A 'Malicious Tenant Prevention Act' needs to be enacted urgently to safeguard landlords' property rights," suggesting a three-stage procedure: initially, document verification; then, interviews; and finally, a six-month internship to complete the tenant selection process. Once it received 100 pre-approvals, the petition quickly gained attention after being posted online the following day. "This initiative aims to choose trustworthy tenants in order to reduce potential risks like unpaid rent, property damage, and disputes with neighbors."

A post titled "Tenant Interview Documents" has recently become a popular trend, clearly reflecting current developments. "The competition for rental properties is intense as the availability of jeonse and monthly rentals has decreased. Now, tenants also need to be vetted. Please check the shared interview-related documents: ① Pay stubs and PT materials related to the workplace; ② Proof of full payment of local and national taxes; ③ A good credit score (tenants with scores below 900 are not eligible); ④ Criminal record certificate and sex offender history check; ⑤ Monthly rent and jeonse deposit payment plan; ⑥ Family relation certificate to determine the number of household members…."

Supporters of "tenant verification" are becoming more vocal. In the current landlord-dominated market, which is experiencing a shortage of jeonse, the proposed revision to the Housing Lease Protection Act, referred to as the "3+3+3" system—permitting tenants to renew their leases for a maximum of nine years—has increased landlords' concerns. One landlord stated, "If I lease now, I could be tied up for nine years. I need to be careful about whether the tenant will take good care of the property and avoid any problems," and added, "Although the term 'interview' might seem like an inconvenience, checking a tenant's background appears essential."

Last month, a post shared within an online community about similar experiences generated considerable interest. "A jeonse property was listed 30 million Korean won below the market price and completely renovated, but the landlord mentioned they would choose tenants through interviews. No young children, no nails on the walls, no stickers, no pets... The real estate agent told me I could skip the interview if I didn't want to, but since this is a rare property and many applicants (?) have already applied for interviews, I might miss out if I apply late. Also, all family members who will be living there must attend the interview. Is this typical?"

In Europe, these kinds of practices are already common. Kim Narae, a 36-year-old well-known pastry chef working in France, managed to get a monthly rental in central Paris for 240,000 South Korean won. As she explained during a TV variety show last year, obtaining a home required having a guarantor, along with the guarantor's income and tax records for a full year, the tenant's employment contract, and evidence of past monthly rent payments. These are all precautionary steps. Kim noted, "There were roughly 30 applicants." Germany and Spain also have similar procedures, where applicants must go through a document review before being interviewed by the landlord.

During the Moon Jae-in government in 2020, when property prices became a major societal concern, similar ideas about interview systems were brought up. That year also experienced a significant shortage of jeonse, as illustrated by an image showing more than 10 people waiting in line in a hallway of an apartment complex in Gayang-dong, Seoul. However, the focus of these interviews changes according to market circumstances. In 2023, with reverse jeonse shortages resulting from jeonse fraud and declining home prices, a new trend developed where tenants, now holding more power, requested detailed financial information from landlords or asked for proof of tax payments and employment to ease worries about getting their deposits back.

New laws have been passed to reveal landlord details in order to stop fraudulent activities and enhance tenant security, with intentions to broaden the range of information shared. Nevertheless, the opposite situation still lacks legal regulation. This is the reason behind the complaints regarding "reverse discrimination." Yoo Seon-jong, a professor in the Department of Real Estate at Konkuk University, stated, "Private multi-homeowners provide approximately 80% of today's jeonse and monthly rental market," and noted, "If the pattern of belittling and limiting them persists, the challenges tenants face in finding housing will only increase."