Procedure and Settlement Checklist for Recovering the Long-Term Repair Reserve When Moving Out of a Rental

If a tenant has paid apartment management fees and also paid the long-term repair reserve fund on the owner’s behalf, the tenant may request reimbursement from the owner, who is generally responsible for the fund. However, it is also necessary to check whether the lease agreement provides a different allocation of responsibility, whether payment was actually completed, and whether the owner changed during the tenancy.

Documents to prepare include the lease agreement, management fee statements, a certificate of payment of the long-term repair reserve fund, management fee transfer records, a certificate of registered matters, and the account into which the reimbursement should be paid. Because this is not a government-administered lump-sum refund program, there is no separate public refund application deadline or integrated application website. The basic procedure is to verify the payment details with the management office and then request reimbursement directly from the landlord.

1. First Check Whether You Are Eligible for Reimbursement

Check all of the following conditions.

• The long-term repair reserve fund was actually charged as part of the apartment management fees.
• The tenant paid the relevant management fees with the tenant’s own money.
• The amount has not already been reimbursed by the landlord.
• You have checked whether the lease agreement contains a separate provision requiring the tenant to bear the final cost of the long-term repair reserve fund.

The Multi-Family Housing Management Act and related regulations provide that the long-term repair reserve fund must be collected from apartment owners and accumulated, and that if an occupant pays it on the owner’s behalf, the owner must reimburse that amount. However, if the lease agreement provides otherwise, the terms of the agreement may affect the reimbursement determination.

The long-term repair reserve fund is not imposed on every home. Even for apartments and other multi-family housing, you must check whether the property is subject to the legal requirements to establish a long-term repair plan and accumulate a reserve fund, and whether the relevant item actually appears in the management fees.

2. Distinguish the Long-Term Repair Reserve Fund, Repair and Maintenance Fees, and Management Fee Advance Deposits

Although their names may sound similar, the basis for liability and the party responsible for reimbursement differ.

The repair and maintenance fees shown on a management fee bill must not be added to the long-term repair reserve fund. Likewise, a management fee advance deposit merely has a similar name and is not automatically included in the reimbursable amount of the long-term repair reserve fund.

3. Obtain a Payment Certificate from the Management Office

Request the following information from the management office or management entity.

1. The period during which the long-term repair reserve fund was charged and paid for the relevant unit
2. The monthly amounts charged and the amounts actually paid
3. Details of any reductions, nonpayment, refunds, or corrections
4. The total amount for the tenancy period
5. A payment certificate showing the issue date and verification by the management entity

The Enforcement Decree of the Multi-Family Housing Management Act provides that when an occupant requests confirmation of payment of the long-term repair reserve fund, the management entity must issue a certificate. Because management fees, the security deposit, and the handover of keys may all be handled simultaneously on the move-out date, it is safer to request the certificate several days in advance if possible.

The management office does not directly return the money to the landlord. The management office verifies the payment history, while the party from whom reimbursement is generally requested is the owner or the person who succeeded to the landlord’s position.

4. Check the Agreement and Ownership Change History

Look for the following language in the lease agreement.

• The landlord bears the long-term repair reserve fund.
• The tenant bears all management fees.
• The tenant bears the long-term repair reserve fund.
• The landlord settles the long-term repair reserve fund when the tenant moves out.

If the agreement merely states that management fees are borne by the tenant, a dispute may arise over whether this provision means that the tenant must ultimately bear the long-term repair reserve fund as well. The wording of special provisions, explanations provided when the agreement was signed, and the method of paying management fees should all be reviewed together.

If the homeowner changed during the tenancy, check the date of the ownership transfer using a certificate of registered matters. The claim regarding liability may differ depending on whether the buyer of the home succeeded to the landlord’s position and how the former and new owners settled the long-term repair reserve fund during the sale.

If ownership changed, it is advisable to divide the documents by period, as shown in the following table.

It is difficult for a tenant to know the details of the internal settlement between the seller and buyer. If the responsible party is unclear, it is useful in practice to first provide all documents to the current landlord, notify the former owner as well by specifying the relevant period and basis of the claim, and retain a record of the responses. If there was an auction, public sale, or complex change in rights, the succession relationship may differ from that of an ordinary sale, so an individual legal review is necessary.

5. Calculate the Amount to Request

The safest basis is not an estimated amount but the amount actually paid as verified by the management entity.

Amount requested for reimbursement = Total long-term repair reserve fund actually paid during the tenancy - Amount already reimbursed - Amount recognized under the agreement as ultimately payable by the tenant

For example, simply assuming that the same amount was charged each month and multiplying it by the number of months of occupancy may overlook an increase or reduction during the tenancy, nonpayment, or prorating for the move-in and move-out months. If the totals on the monthly statements and payment certificate differ, first ask the management office which month the discrepancy occurred and why.

Prepare a settlement table that separately lists the security deposit, unpaid rent, ordinary management fees, restoration costs, and the long-term repair reserve fund. If any amounts are to be offset, it is advisable to document which claim is being offset and by how much so that both parties can verify it.

6. Request Reimbursement from the Landlord in Writing

Include the following information in the reimbursement request.

• The address, building number, and unit number of the leased home
• The term of the lease agreement and the actual period of occupancy
• The payment period and total amount of the long-term repair reserve fund
• A statement that the payment certificate is attached
• The account into which reimbursement should be paid
• A reasonable date by which a response or payment is requested
• Contact information

Even if the request is made by text message or messenger, send the payment certificate file and amount calculation table together and retain the transmission records. If a dispute is expected, you may consider a method that allows you to verify the contents sent and whether they were delivered, such as certified-content mail.

The reimbursement request may be worded as follows.

I have attached the certificate of payment for the long-term repair reserve fund that I paid on your behalf through the management fees during the lease term. Based on the total amount actually paid shown on the certificate and the amount previously settled, the amount requested for reimbursement is ○○ won. Please review the attached details and respond by ○ month ○ day.

Do not state that approval or payment is certain. Clearly present the basis for the calculation so that the other party can raise objections based on any special lease provisions or prior settlement.

7. Move-Out Day Settlement Checklist

• I received the final management fee bill or interim settlement statement.
• I checked the start and end dates on the long-term repair reserve fund payment certificate.
• I did not mix repair and maintenance fees or the management fee deposit into the reimbursable amount.
• I rechecked the special provisions concerning the long-term repair reserve fund in the lease agreement.
• I listed the security deposit, rent, utility charges, and restoration costs as separate items.
• I provided the landlord with the requested reimbursement amount and account information in writing.
• If I received cash, I prepared a receipt or settlement confirmation.
• I checked the terms of the agreement to ensure that the handover of keys and move-in registration-related procedures were not completed before receiving the security deposit.
• I retained the payment certificate, settlement table, remittance records, and conversation records.

8. What to Do If You Discover It After Moving Out

Even after moving out, if you can prove that you paid the amount on the owner’s behalf during the tenancy, you may promptly gather the documents and request reimbursement. First, ask the management office at the time or the current management entity whether it can issue a payment certificate by unit and period.

Prepare the following documents.

• Former lease agreement
• Documents verifying the move-in and move-out period
• Monthly management fee bills
• Bank transfer or card payment records
• Long-term repair reserve fund payment certificate
• Certificates of registered matters from the relevant time and the present
• Records of the reimbursement request sent to the landlord and the response

This is not a program with a separate short-term refund application deadline, but monetary claims are subject to a statute of limitations. The limitation period and its starting point for a monetary claim may be determined differently depending on the parties and the nature of the agreement, so they should be confirmed through legal consultation with the Korea Legal Aid Corporation or another legal service. For an old claim, it is safer not to determine the starting point on your own and to seek legal advice promptly.

9. An Easily Overlooked Verification: Distinguishing Amounts Charged from Amounts Paid

The mere fact that a long-term repair reserve fund appears on a management fee bill does not mean the entire amount is eligible for reimbursement. Because reimbursement is based on the amount the tenant actually paid on the owner’s behalf, the following differences must be checked.

• Amounts billed but unpaid
• Amounts paid directly by the landlord in certain months
• Amounts reduced or refunded due to management fee corrections
• Amounts charged for periods before move-in or after move-out
• Amounts already returned in a previous settlement
• Amounts incorrectly associated with the unit’s information

If past records are dispersed because the management entity changed, records for each management period must be obtained separately and linked together. This verification reduces duplicate claims and omissions that can arise from simply multiplying the monthly payment by the number of months of occupancy.

10. If the Landlord Refuses Reimbursement

First, request the reason for the refusal in writing. Organizing documents by issue, such as special lease provisions, a claim that payment was already made, a change of ownership, or a discrepancy in the amount paid, will make it easier to explain the facts during mediation or litigation.

If no agreement can be reached, you may check whether the matter is eligible for mediation by the Housing Lease Dispute Mediation Committee or obtain legal advice from the Korea Legal Aid Corporation or another legal service. Mediation is a dispute resolution process between the parties, and filing an application does not automatically establish entitlement to reimbursement. If the amount is substantial or the matter involves an ownership transfer or auction, the responsible party and statute of limitations must be reviewed individually.