Key money is a term used to refer to payments given to secure a benefit from a person, business or other entity. It is both a useful tool relied upon by landlords and real estate professionals as well as a potentially forbidden and dangerous form of under-the-table payment.

In the real estate field, key money refers to a payment given to a landlord or real estate broker, usually in cash and often in addition to the security deposit, when renting or leasing a property. This payment is often thought of as a sort of bribe, making the process smoother and more likely to be successful. In markets where there is a high demand for apartments, the payment of key money can be a means of securing rental property. In these cases, the tenant pays an amount of cash to a broker or landlord in addition to the security deposit and other fees stated as part of the rental contract. This lump sum can be a one-time payment or could be collected over time. The amount of key money to be paid can vary depending on the availability of the property - for highly desirable properties key money could be much higher, and sometimes the payment is required in entire before the tenant can move in.

In other areas of business, the term key money can also refer to payments made to secure a favor, benefit or agreement from another party. In this context, the payment is illegal and should be avoided at all costs. In the case of key money in the real estate context, it is important to acknowledge the potential for fraudulent use of such deposits in order to secure apartments. The legal status of key money in this context varies by country or region - in some cases, key money is outright forbidden, while in other places it is a legal and acceptable part of the rental process.

In either case, key money plays an important role in shaping the dynamics of real estate markets. By understanding the implications and context of key money, tenants and landlords alike can make better informed decisions when it comes to investing in or renting out property.