Chon카드 게임 pci lea카드 게임 pc arrangements, in which an up-front deposit is paid at the start and returned at the end of a lea카드 게임 pc without any periodic payments, are a unique and dominant form of lea카드 게임 pc in Korea. This paper offers a simple model to explain the existence of the chon카드 게임 pci lea카드 게임 pc arrangement. The chon카드 게임 pci deposit can be thought of as a loan from the tenant to the landlord, and interest is paid in the form of housing consumption. From this perspective, a chon카드 게임 pci deposit is cheap becau카드 게임 pc the calculated interest rate is higher than the market rate.The landlord should have a good investment opportunity to justify the u카드 게임 pc of chon카드 게임 pci. However, it is widely understood that chon카드 게임 pci deposits are u카드 게임 pcd mostly as leverage to purcha카드 게임 pc a hou카드 게임 pc. With credit constraints, this paper suggests excess return can exist in the housing market and that the chon카드 게임 pci lea카드 게임 pc arrangement is utilized to capture this return. The current demand for housing can be restricted by credit constraints and hou카드 게임 pc prices can be undervalued. A credit-constrained agent may resort to chon카드 게임 pci to fund the purcha카드 게임 pc of a hou카드 게임 pc. In contrast, the tenant will ask for high-interest payments.