Tenant Move-Out Day Settlement Order for Management Fees, Utilities, and the Long-Term Repair Reserve Fund

Moving-day settlement is not simply a matter of paying the final maintenance fee bill. The maintenance fee billing cutoff date may differ from the actual move-out date, and the contract arrangements for electricity, water, and city gas vary by home. When the return of the long-term repair reserve fund and deductions from the security deposit are also involved, disputes can easily arise over who must pay how much.

The safest approach is to confirm the settlement method with the management office and each utility provider before moving, record the meter readings and condition of the home immediately before moving out, and then compare the documents before handing over the keys and settling the security deposit.

Three Things to Check Before Moving

1. Check whether utilities are included in the maintenance fees

In apartments and some other multi-unit housing, the management office reads electricity or water meters collectively and includes the charges in the maintenance fees. Other homes have individual electricity contracts, individual water meters, or individual city gas contracts.

Confirm the following with the management office or landlord.

• Whether electricity charges are included in the maintenance fees or settled directly with Korea Electric Power Corporation
• Whether water charges are based on individual household meter readings or allocated according to the number of occupants, floor area, or another standard
• Whether city gas is supplied under an individual contract or central heating costs are included in the maintenance fees
• Whether there are separate charges for parking, elevator use, moving work, or other services
• How interim maintenance fees through the move-out date are calculated

You must first distinguish the contract arrangements to prevent the same charge from appearing both in the maintenance fees and on a utility provider’s bill.

2. Check the maintenance fee billing cutoff date

If the maintenance fee billing period does not match the move-out date, usage after the last regular bill must be calculated separately. This is commonly called an interim maintenance fee, but there is no single calculation formula used nationwide.

Items that can be metered, such as electricity and water, can be calculated based on actual usage. Fixed charges, such as general management, cleaning, and security fees, may be prorated according to the management bylaws or the management office’s standards. Therefore, do not ask only for the total amount; request the applicable billing period and the amount for each item.

3. Schedule the city gas move-out procedure

If you use individually supplied city gas, notify the local city gas provider that you are moving out. Depending on the region and equipment, a technician’s visit, meter inspection, or safety measures may be required, so it is better to apply several days before the move rather than on moving day.

When applying online or by phone, have the address, account holder’s information, customer number, scheduled move-out time, and meter location ready. City gas providers vary by region, so check the relevant provider with the landlord or on a previous bill.

Order for Settling Maintenance Fees and Utilities on the Move-Out Date

Step 1: Photograph the meters after the home is empty

After you have finished using the appliances and lights, photograph the electricity, water, and gas meter readings. It is best for the photographs to show not only the readings but also the meter identification numbers and the time they were taken.

Also record the following:

• The condition of each room, wall, floor, window, and built-in fixture
• Equipment included in the rental property, such as the boiler, air conditioner, and door lock
• The number of keys, access cards, parking cards, and remote controls
• Wide views of the empty home showing that no waste or belongings have been left behind

Meter readings establish the cutoff for final usage, while records of the home’s condition provide evidence in case of a dispute over deductions for restoration costs.

Step 2: Have the management office calculate the interim maintenance fees

Inform the management office of the actual move-out date and meter readings, and request the settlement details for the household. If electricity and water are included in the maintenance fees, the management office’s settlement comes first.

Check the following on the settlement statement:

• The start and end dates of the billing period
• The distinction between general management fees and usage charges
• Meter readings and unit rates for electricity, water, heating, and other services
• Whether unpaid balances, late fees, or advance payments are included
• Whether the long-term repair reserve fund is shown as a separate item
• The names and calculation basis of any additional moving-related charges

If you paid the amount, keep the receipt or bank transfer record. If the management office issues certificates of full payment, you may request one, but not every management office issues a document under the same name or in the same format.

Step 3: Close out individually billed utilities

Utilities not included in the maintenance fees must be settled separately with each provider.

Before immediately canceling automatic payments, check how the final bill will be withdrawn. If settlement and cancellation of automatic payments are handled in the wrong order, an unpaid balance or duplicate payment may result.

Step 4: Calculate the long-term repair reserve fund separately

The long-term repair reserve fund is money accumulated to replace or repair major facilities in multi-unit housing in the future. Under the Multi-Family Housing Management Act, the management entity generally collects it from the owner. If a tenant, as the occupant, paid it on the owner’s behalf, the owner is to reimburse that amount.

If the long-term repair reserve fund is listed separately on the maintenance fee bill, request a payment certificate or payment statement from the management office. The Enforcement Decree of the Multi-Family Housing Management Act requires the management entity to issue a certificate when an occupant requests confirmation of payment.

However, the following must be distinguished:

• Long-term repair reserve fund: A reserve for replacing and repairing major facilities under a long-term repair plan, for which the owner is generally responsible.
• Repair and maintenance expenses: Maintenance fee expenses for routine repairs and upkeep, which may ordinarily be charged to the actual occupant.
• Maintenance fee deposit or advance maintenance fees: An amount deposited at the beginning of occupancy; the name and refund arrangement must be confirmed separately with the management office.
• Special provisions in the lease agreement: If there is a separate special provision concerning responsibility for the long-term repair reserve fund, its wording and effect must be reviewed. Legal advice may be needed if there is a dispute.

For officetels, multiplex housing, and similar properties, the long-term repair reserve fund system under the Multi-Family Housing Management Act may not apply in the same way, depending on the building’s legal classification and management method. First check whether the item was actually charged on the bill.

Step 5: Reconcile all amounts on one sheet

The final settlement sheet should distinguish at least the following items.

The long-term repair reserve fund should be shown on a separate line rather than combined with other unpaid maintenance fees to reduce calculation errors.

Documents to Obtain from the Management Office

Document names may vary by complex, so check the contents rather than the names.

1. Maintenance fee settlement statement as of the move-out date: A document showing the settlement period, charges by item, unpaid balances, and payments
2. Maintenance fee receipt or proof of payment: A document proving that payment was actually made
3. Long-term repair reserve fund payment certificate: A periodic or total record of the long-term repair reserve fund paid during the tenant’s occupancy
4. Full-payment confirmation records: If issued by the management office, a document showing whether the household had any unpaid balance at the time of settlement
5. Household meter-reading records: The opening and closing readings for electricity, water, and heating usage included in the maintenance fees

If the management office does not issue a document called a certificate of full payment, you can keep a settlement statement showing a balance of KRW 0 together with the payment receipt. It is advisable to request the long-term repair reserve fund payment certificate separately from the general maintenance fee records.

How to Calculate the Long-Term Repair Reserve Fund Refund

The most accurate refund amount is the total of the actual payment records issued by the management office. Simply multiplying the number of months of occupancy by the current monthly charge may fail to reflect changes in the rate during the tenancy or records of nonpayment or reductions.

The calculation procedure is as follows.

1. Confirm the start and end dates of occupancy under the lease.
2. Obtain the long-term repair reserve fund payment records for that period.
3. Identify any amounts paid directly by the landlord or another person.
4. Add only the amounts actually paid by the tenant on the owner’s behalf.
5. Present the payment certificate and bank account information to the landlord and request reimbursement.

If the contract contains a special provision concerning the long-term repair reserve fund, check it before settlement. If the parties interpret the provision differently, the management office is not an institution that determines legal liability, so you must consult with the landlord or seek legal advice.

Matters to Check When Settling the Security Deposit and Handing Over the Keys

At the end of the lease, the landlord must return the security deposit, and the tenant must hand over the home. In practice, it is safest to agree in advance to handle the security deposit transfer, final inspection of the home, and handover of the keys and access devices at the same time.

What to check before deductions are made from the security deposit

• A settlement sheet listing the name and amount of each deduction
• The billing period and items for unpaid maintenance fees
• Photographs showing whether damaged areas existed before move-in
• The basis for calculating the amount, such as repair estimates or receipts
• Whether the condition is deterioration or wear from ordinary use, or damage for which the tenant is responsible
• Whether the long-term repair reserve fund refund has been omitted

You do not need to immediately agree to a full deduction without supporting evidence simply because the landlord claims repair costs. Conversely, continuing to retain the keys solely because of a settlement dispute may create an additional dispute over when the handover of the home was completed. It is advisable to distinguish disputed amounts from undisputed amounts and document any agreement in text messages or on the settlement sheet.

Final handover records

• Confirm actual receipt of the security deposit
• Record the number of keys and access cards
• Agree on how the door lock password will be handled
• Cancel parking registration and common entrance access privileges
• Record the time of key handover and the recipient
• Share the final settlement sheet and photographs with the landlord

If settling in cash, prepare a receipt. If paying by bank transfer, keep the transfer completion screen and transaction record.

How to Check a Previous Occupant’s Unpaid Balance When Moving into a New Home

Before moving into a new home, separate the household’s maintenance fees and baseline meter readings from those of the previous occupancy. You should not conclude that a new tenant is immediately obligated to pay merely because the previous occupant has an unpaid balance. Check the period in which the unpaid balance arose, the nature of the costs, the terms of the lease agreement, and the legal basis, and ask the landlord to resolve the matter.

Follow these steps on the move-in date.

1. Register the move-in date with the management office and confirm the date on which charges to the new tenant begin.
2. Ask whether any unpaid balance from the previous period remains on the household ledger.
3. If there is an unpaid balance, request a document showing the period and items, and forward it to the landlord.
4. Photograph the electricity, water, and gas meter readings to establish the move-in baseline.
5. Record the condition of the walls, floors, windows, appliances, and equipment on the move-in inspection sheet.
6. Share the photographs with the landlord and notify the landlord of existing defects by text message or email.

The management office may decline to provide detailed information about the previous occupant for privacy reasons. In that case, request confirmation not of personal information, but of the billing period for the household, the unpaid items, and whether the balance as of the move-in date has been separated.

Final Moving-Day Checklist

Maintenance fees and utilities

• I confirmed the maintenance fee billing end date.
• I photographed the electricity, water, and gas meters and their identification numbers.
• I distinguished utilities included in the maintenance fees from items requiring separate settlement.
• I completed the city gas move-out procedure or safety measures.
• I confirmed the cancellation of automatic payments and the final withdrawal schedule.
• I received the interim maintenance fee settlement statement and payment receipt.

Long-term repair reserve fund and security deposit

• I received the long-term repair reserve fund payment certificate.
• I distinguished repair and maintenance expenses from the long-term repair reserve fund.
• I checked the relevant special provisions in the lease agreement.
• I confirmed the security deposit deductions and the basis for their calculation.
• I coordinated the timing of the security deposit payment and key handover.

Handover of the home

• I photographed or recorded video of the empty home.
• I confirmed the number of keys, access cards, and remote controls.
• I documented responsibility for any damage or repairs required.
• I shared the final settlement sheet with the landlord.
• I stored all documents and conversation records separately.

The key to moving settlement is not paying the total amount quickly, but separating the billing period, responsible party, and calculation basis for each amount. In particular, separating utilities included in the maintenance fees from individually billed utilities, and general maintenance fees from the long-term repair reserve fund, can prevent most duplicate payments and omitted refunds.