Once you have decided on a property to rent, one thing you will want to check is the types of dates involved in the rental agreement.
There are various dates in a rental contract, such as the application date, contract date, move-in date, and rent start date, and there are differences between them.
Remembering this difference will also help you plan your move-in date and avoid paying double rent.
In this article, we will explain in detail the types of dates related to rental contracts and how to avoid paying double rent when moving.
What are the application date, contract date, and move-in date for a rental contract?
A rental contract has four different dates: the date of application, the date of contract, the date you can move in, and the date rent is due.
Understanding these types of dates will help you plan your move smoothly, including giving notice of termination and the move-out date.
In addition, the move-in date and when rent begins to be paid vary depending on the property, making it difficult to plan your move.
Remembering the types of rental dates will help you when scheduling your move, so first let's learn the definitions of the three types of dates:
- Application date
- Contract date
- Move-in date
First, let's explain the definitions of the three dates above.
Rental contract application date
When you have decided on the property you want to live in, the date you submit your application to the real estate agency will be the date of your rental contract application.
Through the real estate company, you will inform the landlord or management company of the property you have applied for that you would like to move in.
From this point on, the management company or landlord will find out the applicant's attributes, such as their occupation and annual income, and will then screen them to see if they are eligible to move in.
The rental application process will take approximately 3 to 7 days, at which point you will be contacted by the real estate company.
Also, if other people have applied for the same property, you will be put on the waiting list as the second and third applicants.
If the first applicant fails the screening or cancels their application for the property, the right to enter into the contract will be passed on to you.
Rental contract signing date
After you have been approved for renting the property, the real estate agency will explain the lease agreement and important information for renting the room .
This is the date on which the rental contract is signed.
The real estate company will explain the property contract and important details to the tenant, and if there are no issues, the tenant will sign and stamp the contract and pay any fees such as the deposit and key money.
When attending a property contract, there is a lot of explanation to be given, so we recommend that you leave at least an hour free in your schedule.
When you attend the signing session, you will be given the date to move in and the date when you will be handed over the keys.
Also, the management company and landlord may be mistaken in thinking that the "contract date" is the date rent starts, so be sure to check when rent will start to start.
Rental contract move-in date
The move-in date will be the date when the property is handed over, approximately one week after the rental contract is completed.
On the day you move in, you will receive the key to your room from your landlord or management company and you will be able to move in.
However, the property will not have been restored to its original state since the previous tenant moved out, and renovations and cleaning may be required, so your move-in date may be postponed.
Especially if there are tenants living in the property, it is not guaranteed that you will be able to move in immediately after they move out, so be sure to consult with the real estate agency and decide on a move-in date with plenty of time to spare.
Also, I think many people would like to clean their new home themselves on move-in day.
Therefore, in this case, we recommend that you schedule the moving of your belongings by a moving company at a later date.
When does the rental fee start?
The rent start date for a rental property is, as the name suggests, the date on which rent is due.
However, the date on which rent starts varies depending on the property, so you will need to check with the real estate company in advance to find out when rent will start to start.
In principle, the rent due date is usually the move-in date of the rental contract , but there are some properties where the rent due date is the contract date.
As we will explain in a later chapter, if you are using free rent or if you have signed the contract first and will move out at a later date, the move-in date is not necessarily the date on which rent is due.
Therefore, be sure to check with the real estate agency on the date on which rent will be paid.
In addition, when moving out of a rental property, the cancellation procedure must be completed at least one month before the move-out date, making it difficult to move on the same day.
Therefore, if you are unable to adjust your rent due dates properly, you will end up paying rent twice.
In particular, if you are moving to a popular property, such as a rented detached house or a condominium in a popular area, you will need to apply and sign a contract first, which can mean you end up paying rent twice.
Depending on the property, the rent start date may be possible to negotiate and adjust, so be sure to consult with your real estate agent.
What is double rent in rental property?
Double rent means that you have to pay rent for both the property you are moving out of and the new property you are moving into in the same month.
Most properties calculate rent on a monthly basis, so you will end up paying one month's rent for both your old and new residence, which can be a big expense.
In order to keep the initial costs of moving as low as possible, many people want to avoid paying double rent.
However, if you are asked to move suddenly or move without checking the cancellation notice period, you may end up paying double rent.
There are two main reasons why double rents occur:
- I was forced to move suddenly
- The notice period for cancellation is more than two months in advance
I will explain each one in order.
I was forced to move suddenly.
If you are suddenly required to move due to work-related reasons, such as a transfer, you may have to pay double rent.
In order to move out of a property, you must give notice at least one month in advance, and there are some properties where you may need to give notice even earlier.
However, in the case of a sudden move, you will need to first decide on a new property and then go through the cancellation procedure, which means there will be a period of overlap between the contracts for your new and old homes.
Therefore, during that period, you will incur double rent and have to pay both.
The notice period for cancellation is more than two months
Some properties require you to give notice to terminate the lease two to three months before your move-out date, which can mean paying double rent.
If your new home is an immediate occupancy property, the normal rental procedure takes 2-3 weeks from application to occupancy, and you can move in within a month.
Therefore, in properties where notice of termination is given two months before moving out, there will be a time lag of one to one and a half months, and double rent will be charged for both the old and new residences.
Landlords and management companies often require rent payment one month after the contract is signed, so it is often difficult to avoid having to pay this one month's rent.
How to avoid paying double rent when renting
Double rent can occur depending on the timing, such as if you move suddenly or give notice of termination more than two months in advance.
For those who want to keep moving costs down, this can be a major expense and is something you want to avoid at all costs.
However, you can reduce the burden of double rent by delaying your move and reducing the initial costs of moving.
Next, we will introduce six ways to avoid paying double rent when renting.
- Check the contract for rules regarding notice of termination and move-out date
- Choose a free rent property
- Choose a zero-zero property
- Choose a new, unfinished property
- Choose a property with daily rent
- Move out at the end of the month
The explanation will be easy to understand, so please refer to it.
Check the contract for rules regarding notice of termination and move-out date
To avoid paying double rent, it's important to schedule your move once you've decided to move.
To do this, be sure to check the rental agreement for the property you live in and confirm the "notice period for termination."
The general notice period for cancellation is one month, but some properties have a two to three month notice period.
In particular, properties that require a cancellation notice period of two to three months are likely to result in double rent, so be sure to plan your move in a way that avoids paying rent.
Cancelling a rental contract can easily lead to problems, such as the timing of paying rent when moving out, so be sure to understand everything at the scheduling stage.
Choose a free rent property
By applying free rent, it is possible to prevent double rent payment.
A free rent property is a property with a contract that avoids paying rent for a certain period of time (approximately 1 to 2 months).
Recently, in order to secure tenants, real estate companies sometimes negotiate and offer free rent.
For example, if the termination notice date is January 15th and the moving date is February 15th, if one month's free rent is applied, rent will start to be charged from March.
In other words, even if you move out in February, the rent for February will be free and you will start paying rent from March.
However, be aware that if you cancel a free rent contract, you may be charged a penalty.
Choose a zero-zero property
A property where there is no deposit or key money required upon moving in is called a zero-zero property .
With a zero-zero property, you can move in with only the advance rent, brokerage fees, and miscellaneous expenses (such as fire insurance and guarantor fees), so your initial costs when moving in are kept low.
Even if you have to pay double rent, by choosing a zero-zero property you can save on initial costs when moving in.
However, while zero-zero properties have low move-in costs, there are also disadvantages to not charging a deposit.
The deposit is originally intended to be used for repairs to the room during your tenancy and when you move out, so if you do not have a deposit, you may be charged a house cleaning fee when you move out.
Furthermore, with zero-zero properties, if you move out within the specified tenancy period, you may be charged a penalty , which could result in a significant expense.
If you have any concerns about a zero-zero property, be sure to consult with a representative at the real estate company before signing a contract.
Choose a new, unfinished property
With unfinished new buildings, the planned move-in date may be more than a month from the application date, so double rent is unlikely to be incurred.
Rent is charged after occupancy, but most new build properties require advance contract solicitation as a prerequisite.
Since the contract cannot be canceled and you cannot view the property, you will need to check the size and facilities in advance, but it is recommended as you do not have to worry about paying double rent.
However, there is a chance that you may not be able to move in as planned due to construction delays or other issues, so be sure to share the situation with the real estate company.
Choose a property with a move-in date of at least one month in advance
For properties where you plan to move out for more than a month, rent payments are due from the date of move-in, so double rent is unlikely to occur.
If you are moving into a room that still has tenants, you may need to postpone your move-in date by more than a month.
In this case, you will be shown similar rooms and check the facilities in the rooms.
However, in the case of a property that is available for occupancy one month in advance, there is a possibility that the occupancy may be extended unexpectedly due to house cleaning or restoration work.
If you are willing to accept the risk that your lease may be extended, you should also consider securing a place to stay for a short period of time just in case.
Choose a property with daily rent
You can reduce double rent by choosing a property with daily rent.
Basic rent is often calculated on a monthly basis, but there are also properties where the rent is calculated on a daily basis.
Daily rent is calculated as "rent / number of days in the month x number of days occupied", where the number of days in the month is divided by the actual number of days.
For example, if you move out of your old residence on March 15th and into your new residence on the 16th, you will have to pay two months' rent for your old residence, but only the rent for the 16 days (from the 15th to the 31st) for your new residence.
While pro rata properties won't completely prevent you from paying double rent, you can reduce your expenses by simply paying rent for your new home by the number of days.
Move out at the end of the month
By moving out at the end of the month, you can avoid paying double rent.
Rent is generally calculated on a monthly basis, with the first day of the month being the starting date and the last day of the month being the closing date.
By setting the move-out date for your old residence at the end of the month and the move-in date for your new residence at the beginning of the month, you can schedule your rent payments so that they do not overlap.
However, please note that you will need to remove your belongings on the day you move out of your old residence and store them elsewhere for a while.
summary
This time, we explained the differences between the "application date," "contract date," "move-in date," and "rent start date" in a rental contract.
Knowing the types of rental dates will help you clearly determine the schedule from signing the contract to moving in and the date rent is due, which will be very helpful when scheduling your move.
Generally, rent is due on the move-in date, but there are some properties where rent is due on the signing date, so be sure to check with the real estate company before signing the contract.
This time we also introduced the types of rental dates and how to prevent double rent.
If you move suddenly or there is a time lag between giving notice to cancel and moving out, you may end up paying double rent, so be sure to be aware of this in advance.
If this is your first time moving and you are unsure of the terms of the rental contract, be sure to understand the contents of this article and check the terms of the contract.
