Denial is the Key To making money with Real Estate

When Renting To Tenants key Money will pay(poor locations) to 12 (top locations e.g. Champs
your bills and make it hard for them to fight youElysées). Remaining number of years of the
in court because it is near untracable. Key moneycontract has little/no impact unless it falls under
is used differently in different parts of the worldthe legal provision of "déplafonnement du
and sometimes means money paid to an existingloyer", meaning the owner is automatically legally
tenant who assigns a lease to a new tenantallowed to ask for a new rent irrespective of the
where the rent is below market. In other parts ofrent paid so far :
the world it is used synonymously with securityIt is also common in many countries to require
deposits.'Key Money' in the form of a security deposit. In
In the United States and the United Kingdom, it isthe United States, for example, it is common for
illegal for landlords to require key money. A casha landlord to require the equivalent of one or two
payment of key money may be required in thosemonths rent as a security deposit to offset
parts of North America with strict rent controls,delinquent rent payments or damage to the
most notably New York City. Because it is paid inproperty during occupancy. This deposit is held in
cash, it is very difficult to trace and usuallyescrow and is refunded when the tenant moves
impossible to prove in court.out, less any repair costs. It is common for
In France it is the norm that a tenant that assignslandlords to take some or all of this deposit and
a lease is paid an amount for a lease that is belowclaim spurious costs for nonexistent repairs. Don't
market. The Capitalization factor is financial andbe the victim of Tenants always require key
strategic, depending on cost of money,money and if a court appearance is needed simple
importance of the site to the taker and thedeny it because no one can prove you ever
location of the site. The ratio used goes from 0accepted it.