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Key Money is normally charged by a tenant, who is willing to transfer his/her lease to a new tenant (upon landlord's approval).
The justification for a tenant to charge Key Money can be based on 1) The good fame/reputation of the store. 2) The footfall the store generates. 3) Preferential Location. 4) Good commercial exposure. 5) Decorative items/fixtures that will be left behind by the vacating tenant.
Some landlords in Kuwait charge Key Money to new tenants when there is a strong appetite in the market for that particular location and the unit is over-subscribed.
In real estate business, Key Money is “down payment” or “Security despot”. By depositing an agreed down payment or security money, the buyer expresses his/her firm intention to buy the property.
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I am apologies to answer this question because it's not my specialist field
i fully agree with the answers been added by EXPERTS..................Thanks.
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