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The Most Bizarre Rules Renters Face Around the World

• David (Viacheslav) Davidenko

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Our global tour of rental practices reveals mind-bending differences that reflect deep cultural values about home, stability, and tenant-landlord relationships.

• Germany rents apartments without kitchens, requiring tenants to install their own and take them when they move
• In UAE, tenants typically pay an entire year's rent upfront before getting keys
• Japan's "key money" tradition requires non-refundable gifts to landlords just for the privilege of renting
• Quebec's synchronized "Moving Day" creates province-wide chaos when most leases end July 1st
• Italy offers substantial tenant security with 4+4 year leases and strong protections
• France's detailed condition reports document every scratch to protect security deposits
• Sweden's two-tiered system creates decades-long waiting lists and a widespread subletting market
• Spain balances flexibility with security, allowing easy exits but automatic long-term extensions

What single aspect from another country's rental system would have the biggest positive impact if implemented in the US?

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Speaker 1:

You know that feeling filling out another rental application, hoping the credit check goes okay, wondering if you'll find somewhere decent that doesn't cost like half your income. Yeah, renting here in America it can be. That can be a lot.

Speaker 2:

It really can, a real roller coaster, sometime Exactly.

Speaker 1:

But have you ever thought maybe the way we do it isn't the only way, or even the standard way everywhere else?

Speaker 2:

Ah, well, that's where things get interesting, because it definitely isn't.

Speaker 1:

So today we're diving into some frankly mind-bending rental practices from around the world. We've been looking at some fascinating reports.

Speaker 2:

Really eye-opening stuff.

Speaker 1:

Get ready, because your whole idea of what renting means might get seriously shaken up.

Speaker 2:

Yeah.

Speaker 1:

Our goal is to explore these international quirks, figure out why they exist.

Speaker 2:

And maybe uncover some surprising cultural values hidden in there too.

Speaker 1:

Okay, let's unpack this and we're starting in a place where finding an apartment might mean finding well an empty space where the kitchen should be Germany.

Speaker 2:

Right. So what's fascinating about Germany? One of the first big differences you notice is that apartments are typically rented completely unfurnished.

Speaker 1:

Okay, unfurnished, I get that. No sofa, no bed.

Speaker 2:

No, no, it goes way beyond that. We mean no kitchen like zero kitchen no cabinets, no countertops, no sink, no oven, no fridge, nothing.

Speaker 1:

Wait, hold on no sink.

Speaker 2:

No sink. It's entirely up to you, the tenant, to buy and install your own kitchen, and this is the kicker.

Speaker 1:

You have to take it all with you when you move out. That I can't even picture that. Walking into a new place and there's this pipe sticking out of the wall where you expect to cook dinner. That sounds completely alien compared to the US.

Speaker 2:

It's a massive contrast, absolutely. Here we just assume a functional kitchen is, you know, table stakes non-negotiable, like you said. Assume a functional kitchen is, you know, table stakes non-negotiable, like you said. But if you look at the bigger picture in Germany, it's actually deeply tied to their culture of long-term renting Leases. There can often last for years, maybe five, 10 years, even longer sometimes.

Speaker 1:

Oh, okay, 10 years.

Speaker 2:

Exactly so. The logic is, if you're going to be somewhere for that long, you'll probably want to invest in a kitchen. That's exactly right for you. It becomes a worthwhile personal thing.

Speaker 1:

Okay, that adds some context, because here with our standard one-year leases, spending thousands on a kitchen you might have to rip out in 12 months, it just doesn't make any sense.

Speaker 2:

It wouldn't be practical at all. It really shows different priorities, doesn't it? In Germany, it seems, there's this greater emphasis on the tenant really shaping their own space almost like a homeowner, even while renting.

Speaker 1:

It implies a different level of, maybe responsibility or ownership, even if you don't technically own the place.

Speaker 2:

What's fascinating here is how it reflects underlying cultural views, maybe about permanence, stability and that personal investment in your home, rental or not, it's less about transience than you often see in the US.

Speaker 1:

Definitely a different idea of home. Okay, so Germany, byok, bring your own kitchen. Got it? Let's jump somewhere else now. How about the United Arab Emirates? I heard their payment system is well, let's just say it makes our monthly rent seem pretty simple.

Speaker 2:

That's one way to put it. Yeah, in the UAE the standard practice generally is paying your entire year's rent up front. The whole year 12 months worth before you even get the keys. Now, sometimes maybe you can arrange post-dated checks for, say, two or three payments. But, the default is one lump sum. The default expectation, yes is that single large payment right at the start. It's largely tied to the UAE's economy which historically has had a very significant transient workforce, so for landlords it provides a lot of financial security.

Speaker 1:

Wow, a full year's rent Just thinking about that here. Our big upfront cost is usually first month's rent and the security deposit right.

Speaker 2:

Right, maybe less months too in some places.

Speaker 1:

But 12 months, yeah, that would be, I mean, completely out of reach for so many Americans. It's just an incredibly different approach to financial stability in the rental market.

Speaker 2:

It really is the US system, paying monthly. It's built for more flexibility, maybe more mobility. The UAE system reflects well different economic realities and maybe different assumptions about tenants.

Speaker 1:

Imagine saving up for that. It's like needing the down payment for a house almost just to rent an apartment for a year.

Speaker 1:

It's a significant hurdle, no question especially if you're moving there for, say, a shorter contract. Yeah, totally, it's like imagine having to pay for your entire year of Netflix or something all at once. To pay for your entire year of Netflix or something all at once yeah, that level of financial commitment right away. Okay, here's where it gets really interesting. Let's switch gears again. Japan and this thing called key money. This one, this one, kind of baffled me.

Speaker 2:

Ah, reichen. Yes, what's fascinating about the Japanese system is this custom Key money, or Reichen is basically, well, it's a non-refundable gift, a gift, a gift you, the tenant, give to the landlord just for the privilege of being allowed to rent their property.

Speaker 1:

You're kidding. How much are we talking?

Speaker 2:

It's usually not small change. Typically it's about one or maybe two months rent and, crucially, this is on top of your regular security deposit and any fees you pay to a real estate agent.

Speaker 1:

So deposit agent fee Potentially thousands.

Speaker 2:

Exactly, and the concept isn't just, you know, a random fee. It's actually pretty deeply embedded in Japanese social customs. It's about showing gratitude, establishing a good relationship, acknowledging the landlord's position. It's a less purely transactional than just to be allowed to pay rent.

Speaker 1:

If you tried that here, people would think you were running a scam. We pay deposits maybe a broker fee if we use one, but an extra thank you payment that would feel so out of place, unnecessary even.

Speaker 2:

It highlights a huge cultural difference, doesn't it? The Japanese system seems to prioritize this cultural decorum, this politeness and respect, maybe over pure ease of access or cost effectiveness. It points to a different kind of landlord-tenant dynamic.

Speaker 1:

Less adversarial maybe.

Speaker 2:

Perhaps Less purely commercial. Certainly, this raises an important question, though how much should cultural norms influence something as basic as finding a place to live? It makes you think.

Speaker 1:

It really does About those unspoken rules. It makes you think it really does About those unspoken rules. Okay, wow, from thank you gifts to coordinated chaos, let's pop over to Quebec, canada. Apparently, they have a rather unique approach to moving.

Speaker 2:

Oh yes, quebec's moving day. It's quite the spectacle. Essentially, by law, almost all residential leases in the province end on the very same day. All of them, the vast majority, yes July 1st. So what happens is you get this massive province-wide scramble where tens, maybe hundreds of thousands of people are all trying to move house simultaneously.

Speaker 1:

That sounds insane, like pure pandemonium.

Speaker 2:

It can be pretty chaotic. The streets are absolutely jammed with moving trucks. You see furniture piled up everywhere on the sidewalks. It's a logistical nightmare, frankly.

Speaker 1:

I can only imagine Leases end all throughout the month, all year round. It spreads things out Booking movers, getting utilities switched. It's usually manageable.

Speaker 2:

Exactly, the US system is much more decentralized, which makes the individual move less stressful logistically. Anyway Quebec's system while maybe creating a kind of quirky shared cultural moment.

Speaker 1:

Shared moment of stress.

Speaker 2:

Right. It definitely creates huge bottlenecks and challenges that we mostly avoid here. Think about the demand for moving trucks just on that one day.

Speaker 1:

Or trying to get an elevator in a big apartment building Nightmare. Okay, so from mass moves to maybe more staying power. Let's head to Italy. Sounds like tenants there might have a bit more security than we often feel here.

Speaker 2:

That's generally true. What's quite notable about Italy is the standard lease. It's usually a four plus four model, so an initial four year contract which then typically has an automatic right to renew for another four years.

Speaker 1:

Eight years of potential stability.

Speaker 2:

Potentially yes. And the laws provide pretty strong protections against just arbitrary evictions or sudden huge rent hikes during that time. It fosters a much greater sense of long-term housing security.

Speaker 1:

That is a world away from the standard US one-year lease where at the end of the year everything can be up for grabs rent increase, new terms or just non-renewal.

Speaker 2:

And tenant protections here vary so much state by state, even city by city. Sometimes you might only get 30 or 60 days notice if your lease isn't renewed, which can feel incredibly precarious.

Speaker 1:

Definitely so. Italy sounds much more tenant. First, maybe prioritizing that stability.

Speaker 2:

It leans that way. Yes, you could say the American model tries to balance landlord and tenant rights and flexibility more, but the result often is less predictability for the renter.

Speaker 1:

Less predictability is a good way to put it. Ok, speaking of potential friction points, security deposits, that's always a fun one. France apparently has a very, very detailed way of handling those.

Speaker 2:

They do. It's called the établis. Basically, it's an extremely thorough condition report. Landlord and tenant go through the entire place together, documenting every single little thing, every scratch, every mark, every scuff, every tiny bit of damage, both when you move in and when you move out.

Speaker 1:

Every single thing Like tiny paint chip.

Speaker 2:

Potentially. Yes, it's incredibly detailed. The whole point is to have this meticulous record to protect the tenant's security deposit from unfair claims about pre-existing issues or just normal wear and tear.

Speaker 1:

We do walkthroughs here, sign checklists, but it's usually much less intense, Minor stuff. Normal wear and tear is generally expected and not something you lose your deposit over. Hopefully.

Speaker 2:

Right. The French system, while it can feel quite bureaucratic and time consuming, does offer a very high degree of clarity and, theoretically, protection for that deposit. The less formal US approach is simpler up front, but well, it can definitely lead to more arguments later about what counts as damage versus wear and tear.

Speaker 1:

Yeah, I think many renters have stories about that. Yeah, Okay, let's shift again. Sweden Sounds like they have a kind of layered rental market secondhand rentals.

Speaker 2:

That's right. Sweden has this interesting two-tiered system. You've got firsthand contracts which are directly with the property owner or housing company. These often have rent controls, which sounds great. There's a catch. There's a huge catch. They are incredibly hard to get because demand massively outstrips supply. There can be waiting lists that are years, even decades long in popular areas.

Speaker 1:

Decades Wow.

Speaker 2:

So because of that shortage, a very large and active secondhand market has developed. This is where existing tenants sublet their apartments, or parts of them, to other people.

Speaker 1:

OK, we have subletting here, but it's not usually the main way people find places, is it?

Speaker 2:

Not typically on this scale, no, and in Sweden, these secondhand contracts often mean paying higher rent than the official controlled rent and you generally have less security because your agreement is with the primary tenant, not the actual owner.

Speaker 1:

So it's a workaround born out of scarcity, basically.

Speaker 2:

Exactly. It really shows how specific housing policies, like strict rent control combined with low construction rates, can create these unique and sometimes difficult market structures. The US system, for all its flaws, generally gives more direct access between tenant and owner-manager.

Speaker 1:

Interesting trade-offs. All right. One last stop, spain. It sounds like they might have found a kind of sweet spot, maybe balancing flexibility for the tenant with some security.

Speaker 2:

It's an interesting model for sure. Spanish rental law offers tenants quite a bit of flexibility. After the first six months of a lease, you can usually terminate it with just one month's notice, without any financial penalty.

Speaker 1:

One month's notice, no penalty, after only six months.

Speaker 2:

Correct. That's quite different from the US, where breaking a lease early usually means hefty fees, losing your deposit or being on the hook for rent until they find someone new, unless you negotiate something specific.

Speaker 1:

Definitely. That sounds very tenant-friendly. What about the security side?

Speaker 2:

Well, on the flip side, the standard contracts tend to automatically extend for quite a while, usually up to five years for a private landlord, or even seven if the landlord is a company. Unless the landlord gives proper notice, they need the property back for specific, legally defined reasons, like needing it for themselves or a close family.

Speaker 1:

So the tenant gets easy exit flexibility but also default long-term security if they want to stay.

Speaker 2:

That's the general idea. Yes, it aims to provide that balance flexibility to leave without massive penalties, but also stability, if you choose to remain. It's quite different from our typical annual renegotiation cycle here.

Speaker 1:

That combination. Yeah, that sounds pretty appealing compared to some aspects of the US system.

Speaker 2:

It certainly prompts you to think about what the ideal balance might actually look like, doesn't it?

Speaker 1:

It really does. So we've gone from no kitchens in Germany to year upfront payments in the UAE. Thank you, money in Japan. Moving day madness in Quebec, long leases in Italy.

Speaker 2:

Wow.

Speaker 1:

Quite the tour.

Speaker 2:

So what does this all mean? Stepping back and looking at all these different ways of renting, it's clear it's not just about putting a roof over your head, is it?

Speaker 1:

Not at all. These systems reflect some really deep-seated economic priorities cultural values about stability versus mobility, tradition versus maybe pure commerce, and even ideas about individual responsibility.

Speaker 2:

It's honestly eye-opening how different it can be and it makes you think, for all the headaches we have, renting in the US, maybe, just maybe, our system isn't all bad in comparison. That's a fair point. The relative ease of finding something, the flexibility of shorter leases for people who need to move, the sheer volume of choices in many places, you could argue it's surprisingly accessible compared to, say, waiting years for a firsthand contract in Sweden.

Speaker 1:

True, but you also see things like the tenant security in Italy or Spain, or even the clarity around deposits in France, and you think maybe we can learn a thing or two.

Speaker 2:

Absolutely. There's always room for improvement, particularly around strengthening tenant protections and offering pathways to more long term security, especially as renting becomes a longer term reality for more people, not just a temporary thing. As renting becomes a longer term reality for more people, not just a temporary phase.

Speaker 1:

Yeah, exactly as the world gets more connected, more people move internationally. Maybe adopting some of these global best practices could lead to better, more balanced housing markets everywhere.

Speaker 2:

It's certainly possible. A more tenant-centric approach in some areas could make a big difference.

Speaker 1:

So what does this all mean for you listening? Here's something to chew on. Considering everything we just talked about, all these diverse ways of renting, what's one single aspect from another country's system that you think would have the biggest positive impact if we brought it to the US, and why that one?

Speaker 2:

That's a great question to ponder. What would really move the needle here?

Speaker 1:

Definitely something to think about.

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David (Viacheslav) Davidenko

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