The initial cost of renting apartment in Japan

When signing a contract for an apartment, there will be initial fees, just like in your countries. Some fees are unique to Japan, so let's check and understand the terminology and meanings to make your contract go more smoothly.

敷金 | SHIKIKIN | The security deposit

• The security deposit is money used for cleaning and repairs when you move out, and is generally 1 to 2 months' rent. In principle, the difference in the deposit will be refunded when you move out. If you keep the room clean, you will get more money back.

• If you fail to pay rent, it may be deducted from your deposit.

礼金 | REIKIN | Gratuity fee or Key money (unique to Japan)

• The kanji for "礼金” means thank you money. It is paid as a token of appreciation for renting the room, so if the landlord decides that it is not necessary, there are properties that do not require key money.

  Recently, more rental properties are not requiring ”礼金". However, instead of there being no "礼金", there are cases where a penalty fee is charged if you terminated the contract within a certain period of time.

  
  

仲介手数料 | CHUKAI TESURYO | Rental agency fee

• This is the commission that a real estate company receives for introducing a property to you. The rental agency fee is generally equivalent to one month's rent. Even if the property is introduced, there is no need to pay it if the contract is not concluded, and the rental agency fee cannot be charged even if you cancel to sign the contract.

前家賃 | MAEYACHIN | Advance payment

• This is the amount you pay the rent in advance for the month following the month you move in. If you move in mid-month, you will also need to pay the rent on a pro rata basis.

火災保険料 | KASAI HOKENRYO | Fire Insurance fee

• When signing a rental contract, you must take out fire insurance for most properties. It is generally renewed every two years, and you pay two years' worth of insurance premiums every renewal. The average cost is around 15,000 to 20,000 yen.

  
  

保証料 | HOSHORYO | Guarantor fee

• When renting a property, a guarantor company acts as a guarantor, and this is the fee incurred when using that company. It is possible to have a joint guarantor, but the procedure differs depending on the property.

鍵交換費用 | KAGI KOKAN HIYO | Key exchange fee

• This is the cost to replace the lock used by the previous tenant. It depends on the type of lock, but it usually costs around 20,000 to 40,000 yen.