Feeling as though renting in America is complicated? High rent, competitive markets, and background checks can be stressful enough. But, tenants elsewhere have the additional challenges of types of rental regulation that make America’s system look rather tame by comparison.

From putting together your German kitchen for yourself to forking out a year’s rent as a down payment in the UAE, international rent arrangements have all sorts of surprises. They reveal not only legal systems, but cultural norms that go deep into history.

Let’s examine some of the world’s most quirky rental traditions—how they’re different from the experience of renters in the U.S.

Germany: No Kitchen Included

In Germany, an apartment is typically rented unfurnished, meaning it doesn’t usually have a built-in kitchen. Tenants have the task of fitting their own cabinetwork, appliances, as well as sinks. When they move out, they usually remove the whole setup.

That would never happen in most American cities, where rentals are supposed to have an included, working kitchen. Most American tenants would be discouraged by the prospect of furnishing one from scratch.

Germany’s model is consistent with its longstanding culture of long-term rentals, where leases can last for a whole decade. In contrast, U.S. leases are normally short-term—typically 12 months—which makes such a big personal investment less feasible.

United Arab Emirates: Single Payment, Single Year

In the UAE, tenants mostly have to make a year’s rent payment upfront before taking up occupation. Some landlords receive post-dated cheques for quarterly or six-monthly rent, but upfront lump payments are generally the standard.

In America, most leases have a monthly payment plan, with initial outlays generally being restricted to a security deposit, plus the first month’s rent. Prepaying for a year would be extremely unusual—and prohibitively expensive—for the majority of U.S. tenants.

The reason for the stark contrast is the UAE’s transient labour market and ownership culture, while the U.S. is set up for economic flexibility and short-term mobility.

Japan: Expressing Gratitude through “Key Money”

In Japan, numerous tenants are required to provide reikin, or “key money”—a non-refundable gift to the landlord as a token of gratitude. This is usually the equivalent of one or two months’ rent and is given as well as deposits and agent commissions.

In contrast, there is no expectation of American renters making goodwill payments themselves to landlords. Fees are generally restricted to deposits and, depending on the market, broker commissions. Paying additional money simply as an expression of gratitude would probably strike most U.S. renters as out of place or unnecessary.

Japan’s rent system puts cultural decorum over ease of access, considerations that are not often replicated within the more commercialized American market.

Quebec, Canada: We All Take the Same Day Off

In Quebec, most leases run out on July 1, causing so-called “Moving Day.” Mounds of discarded furniture clog the streets, as well as moving trucks, as thousands of tenants make their transitions all at once.

Such a mass relocation would be practically impossible within US cities, as start and end dates of leases are staggered across the year. The rolling structure creates greater flexibility, less traffic, and simpler service coordination for things such as movers and utilities.

Whereas Quebec’s scheme produces a uniform renting pace, it introduces logistical hassles that the decentralized American one evades for the most part.

Italy: Strong Tenant Rights, Long Leases

In Italy, leases are generally four years with automatic extensions included. Legislation provides powerful safeguards from arbitrary evictions or rent rises, granting tenants stability in housing for extended periods of time.

The U.S., by comparison, generally provides for shorter leases—typically one-year terms—with the terms of renewal normally being renegotiated. Tenant protections can vary immensely from state to state, with renters being subject to non-renewal on as little as 30 days’ notice, or 60 days, depending on the state law.

Italy’s tenant-first approach focuses on security and permanence, whereas the American model balances the rights of tenants with landlord considerations, leaving tenants with less predictability.

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France: Thorough Move-In Inspections

Rental tenants in France have to fill out a very detailed condition report, called état des lieux, when moving into and out of a rented apartment. Each scratch, spot, or ding needs to be noted so deposits will not be deducted.

Though move-in condition reports do exist within the U.S., they are less formalized and much less detailed. Minor wear is usually not taken into consideration unless it is extensive.

France’s detail-intensive process provides complete security, though it is complicated. American tenants enjoy a less rigorous approach, though it can create conflicts over what counts as damage.

Sweden: The Second-Hand Rentals Phenomenon

Sweden’s housing market is two-tiered: first-hand leases from landlords, and second-hand subleases from current tenants. Because of a shortage of housing, as well as rent controls, many individuals depend on second-hand arrangements, frequently paying higher rent for less security.

Subleasing is practiced in the U.S., too, though not as pervasively. Most tenants negotiate directly with landlords or their agent companies, and subletting is often subject to approval and additional paperwork.

Sweden’s distinctive structure is the result of its housing policies, whereas the American renting process—while not optimal—tends to provide greater direct access to owners of properties and more choices overall.

Spain: Flexibility and Long-Term Security

Spain’s laws of rent provide tenants the right to terminate leases with a one-month notice after a six-month minimum, penalty free. Contracts automatically extend for five to seven years unless the landlord opts out.

In America, tenants who prematurely terminate their leases usually incur penalties except where they have identified a new tenant who will replace them, or have negotiated for an early exit. Renewal of leases is normally done yearly and is subject to rent adjustment or terms variation.

Spain’s framework develops a desirable combination of tenant adaptability and long-term security—components not as prevalent within the patchwork of American renting. 

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Conclusion

The manner by which people rent houses says as much about economic systems as it does about how societies prioritize stability, tradition, and responsibility for oneself. Japan’s cultural ceremonies, Germany’s do-it-yourself kitchens, are only the tip of the iceberg of international rent controls, which seem utterly alien to Americans. For all its imperfections, the U.S. system is surprisingly easy, flexible, and accessible, perhaps envied by many renters globally.

However, there is much that the U.S. can learn from international models, not least where tenant rights and long-term housing security are concerned. As mobility becomes increasingly international, as renting becomes lifelong for more, borrowing the world’s best practices could make housing markets all over the world more balanced, tenant-centric.

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