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.
In Japan, reikin (礼金, literally, "gratitude money") is a mandatory payment to the landlord that is often the same amount as the original deposit (shikikin).
There are regional variations – in Kantō (Eastern Japan, including Tōkyō), a renewal fee (更新料, kōshinryō) is typically charged at contract renewal, similar to repetition of key money, while in Ōsaka key money is instead deducted from a large security deposit, which is known as shikibiki (敷引き), from "rental deposit" (敷金, shikikin).
[4] The Swedish Union of Tenants believes that the illegal practice of demanding key money or other compensation happens at most private landlord companies,[5] while the landlords' advocacy group Fastighetsägarna believes that as much as half of the rental contracts are wrongly obtained at any time,[6] and proposes a reduction of rent control as a solution.
In the Netherlands, key money (sleutelgeld) is a payment without consideration, often required by either the landlord or by the vacating tenant.
[9] As the Netherlands experience a shortage in living space (especially in Amsterdam and other large cities in the west), landlords and tenants nevertheless often ask for key money despite it being illegal.
It is illegal but common for unscrupulous landlords to refuse to refund some or all of this deposit, instead keeping it for unneeded "cleaning" or "repairs".
The new tenant can then junk the existing, outdated trailer and replace it with a modern one while keeping the terms of the original lease for the land under it.
[citation needed] Since key money is in many cases illegal for the reason that it is a payment without consideration or even a bribe, it is often disguised as other costs: