Key money is one of several forms of payment made to a landlord. The term has various meanings in different parts of the world. It sometimes means money paid to an existing tenant who assigns a lease to a new tenant where the rent is below market. It sometimes means a bribe to a landlord. In other parts of the world, it is used synonymously with normal security deposits, which are used to cover nonpayment of rent and excessive damage to a rental unit.
What is ‘Key Money’
A payment made to a building owner, manager or landlord by a potential tenant in an attempt to secure a desired tenancy. Key money can be considered a type of deposit on a housing unit such as an apartment unit.
Key money also refers to a security deposit paid by a lessor or a lessee for a leased property.
Explaining ‘Key Money’
Key money is paid by a prospective tenant to a property owner or manager in the hopes of securing a rental contract in a particular property. In certain circumstances, key money can be considered a bribe to ensure that a property coming up for rent is secured by the payer of the key money, and as such, the transaction is conducted in an unofficial manner.
Key Money FAQ
What is key money in NYC?
What is key money in Korea?
What is key money Japan?
Is key money an intangible asset?
What is the meaning of key money?
What does key money mean in commercial real estate?
- Evaluating fashion retailers' intellectual capital: key money as a part of customer capital – www.emerald.com [PDF]
- Selection of performance objectives and key performance indicators in public–private partnership projects to achieve value for money – www.tandfonline.com [PDF]
- Responses to the financial crisis, Treasury debt, and the impact on short-term money markets – papers.ssrn.com [PDF]
- The Private Finance Initiative in the UK: A value for money and economic analysis – www.tandfonline.com [PDF]
- The financial instability hypothesis – papers.ssrn.com [PDF]