Key money is one of several forms of payment made to a landlord. The term has various meanings in different parts of the world. It sometimes means money paid to an existing tenant who assigns a lease to a new tenant where the rent is below market. It sometimes means a bribe to a landlord. 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. Oceania Australia In many states of Australia (New South Wales, Victoria, etc.), the Retail Leases Act calls key-money a payment or benefit without true consideration, expected from a tenant in order for a lease being granted, renewed or modified, and makes such payment illegal. Asia Japan In Japan, is a mandatory payment to the landlord that is often the same amount as the original deposit (shikikin). However, reikin can be the equivalent of six months (or more) of rent, but is typically the same as one to three months of rent. This money is considered a gift to the landlord and is not returned after the lease is canceled. There are regional variations – in Kantō (Eastern Japan, including Tōkyō), a 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 , from . In recent years, an increasing number of landlords and real estate agencies have begun to offer reikin-free rental housing, and the semipublic Urban Renaissance Agency does not charge key money or renewal fees. South Korea In South Korea, the key money system (as opposed to monthly rent or ) requires the lessee to make a deposit of about two-thirds the total cost of the leased property in lieu of monthly payment. The key money is returned when the lease expires. The key money deposit will not be returned before termination of the lease unless another lessee replaces the outgoing lessee. Pakistan It is goodwill and non-refundable. It is known as PAGHRI. Europe France In France, a tenant who has a lease that is below market can assign that lease to a new tenant. The new landlord is required to accept the original rent from the new tenant. The new tenant essentially buys the lease from the original tenant. The capitalization factor is financial