Key Money - United States

United States

Generally in the United States, apartment leases are not transferable without the consent of the landlord. The primary exception is the right to rent a space in a mobile home park, which is frequently transferable, frequently rent-controlled, and frequently subject to French-style "key money" payments to the original tenant in the form of buying the current mobile home at an inflated price. The new tenant can then junk the existing, outdated trailer and replace it with a modern one while keeping the terms of the original lease for the land under it.

In the United States, it is illegal for landlords to require off-the-books key money. The terms of the written lease can be enforced in court. However, a cash bribe, styled as "key money," may be demanded in cities with strict rent controls. Because it is paid in cash, it can be very difficult to prove in court.

When renting commercial properties in which the premises already contains various trade-fixtures, equipment, electric, and plumbing (items typically left when a former tenant vacates), such items have a value above the typical rent for an empty "vanilla shell" premises. The landlord would charge the tenant key money in order for the tenant to have the right to use and take over all of the existing equipment.

It is also common to require key money in the form of a security deposit. It is common for a landlord to require the equivalent of one or two months rent as a security deposit to offset delinquent rent payments or damage to the property during occupancy. This deposit is held in escrow and is refunded when the tenant moves out, less any repair costs or unpaid rent. 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."

Landlord-tenant laws in the United States typically specify that a landlord must provide a detailed accounting of all deductions from a security deposit on request and normally cannot charge for "normal wear and tear," such as replacing old carpets or painting walls that have not been painted for many years.

Read more about this topic:  Key Money

Famous quotes related to united states:

    The professional celebrity, male and female, is the crowning result of the star system of a society that makes a fetish of competition. In America, this system is carried to the point where a man who can knock a small white ball into a series of holes in the ground with more efficiency than anyone else thereby gains social access to the President of the United States.
    C. Wright Mills (1916–1962)

    I am colored but I offer nothing in the way of extenuating circumstances except the fact that I am the only Negro in the United States whose grandfather on the mother’s side was not an Indian chief.
    Zora Neale Hurston (1891–1960)

    The boys dressed themselves, hid their accoutrements, and went off grieving that there were no outlaws any more, and wondering what modern civilization could claim to have done to compensate for their loss. They said they would rather be outlaws a year in Sherwood Forest than President of the United States forever.
    Mark Twain [Samuel Langhorne Clemens] (1835–1910)

    The United States themselves are essentially the greatest poem.
    Walt Whitman (1819–1892)

    I do not know that the United States can save civilization but at least by our example we can make people think and give them the opportunity of saving themselves. The trouble is that the people of Germany, Italy and Japan are not given the privilege of thinking.
    Franklin D. Roosevelt (1882–1945)