A Study on the Application of Monthly and Jeonse Conversion Ratio in the Calculation of Real Estate Brokerage Fees

Recently, landlords prefer monthly rent to jeonse and the increase in jeonse loan interest rates have increased the proportion of jeonse in housing lease transactions and decreased the proportion of jeonse due to the increase in damage from jeonse fraud and the standard of housing price applied when purchasing jeonse deposit return guarantee insurance to 126%. In calculating real estate brokerage fees, monthly rent has been uniformly applied until now, but in the current situation where monthly rent transactions are increasing, a calculation formula has been derived that allows the monthly rent conversion rate to be linked to interest rate fluctuations. This was derived by converting the calculation formula of the existing ｢Enforcement Decree of the Housing Lease Protection Act｣, which converts the deposit to monthly rent in conjunction with the base rate, and was calculated to divide the total monthly rent for 10 months by the base rate + 2%, and if the transaction value calculated was less than 50 million won, the total monthly rent for 7 months was calculated to be divided by the base rate + 2%. Through this, it is possible to calculate a reasonable transaction amount in calculating the brokerage fee according to changes in interest rates in the future and changes in jeonse and monthly rent in the housing rental market.