It’s time to rent…..what is the initial cost for rent?
After a period in a hotel, dormitory, or company housing, you’ll eventually need to find a place of your own.
The process can be exciting—but also confusing. Japan’s rental system includes several upfront costs that differ from those in other countries: deposits(Shiki-kin), key money(Rei-kin), agency fees, and guarantor charges, among others. It’s also important to know when these payments are due and what support is available.
In this article, we’ll explain typical initial costs fore rent, based on real cases we’ve supported. Whether you’re here for work or study, this guide will help you prepare with confidence.
Types of Initial Rental Costs in Japan
1. Deposit (敷金 – Shikikin)
This is usually equivalent to one month’s rent. It’s paid to the landlord and held as a form of insurance to cover the cost of restoring the room to its original condition when you move out. Common expenses such as cleaning fees will typically be deducted, and the remaining balance is refunded to you.
2. Key Money (礼金 – Reikin)
Also typically one month’s rent, key money is a non-refundable gift to the landlord as a gesture of appreciation for renting the property. Unlike the security deposit, this money will not be returned when you move out. However, it’s worth noting that an increasing number of properties no longer require key money.
3. Advance Rent (前家賃 – Mae-yachin)
You’ll usually need to prepay one month’s rent before moving in. For instance, if you sign the lease in February and move in starting March, the March rent is paid upfront. If you move in mid-month, the rent will be prorated based on the number of days.
4. Agency Fee (仲介手数料 – Chūkai tesūryō)
This is the commission paid to the real estate agency for helping you find the apartment and handling paperwork. The legal maximum is one month’s rent (excluding tax), and most agencies charge the full amount. In some cases, you might also see a “contract processing fee” of around ¥10,000 depending on the property.
5. Fire Insurance (火災保険 – Kasai Hoken)
You’ll be required to have insurance that covers fire, water damage, and other incidents. Costs vary, but for single renters, it’s around ¥15,000; for couples or families, approximately ¥20,000.
6. Guarantor Company Fee (保証料 – Hoshōryō)
In Japan, it’s common to use a rent guarantor company instead of relying on a personal guarantor. The fee is usually equal to one month’s rent (including common service fees) and is non-refundable. This service guarantees payment to the landlord if you’re unable to pay your rent.
7. Other Possible Costs (Depending on the Property)
- Key Replacement Fee
Many landlords require a lock change before a new tenant moves in. The cost varies depending on the type of lock, but in our clients’ experience, it usually ranges from ¥16,000 to ¥33,000. - 24-Hour Emergency Support Service
Some properties require tenants to enroll in a 24/7 support service that handles emergencies like water leaks or lost keys. Instead of contacting the property manager directly, you can call the support center anytime. This service typically costs ¥15,000–¥20,000 for a two-year period.
How much are initial rental costs in Japan?
Expect to Pay Around 4.5 to 5 Months’ Rent Upfront
The total initial costs for renting a property in Japan typically amount to about 4.5 to 5 times the monthly rent. While the actual amount varies depending on the property and location, this formula offers a helpful general estimate:
Estimated Initial Costs = Monthly Rent × 4.5 to 5
This estimate usually includes:
- Security deposit (1 month’s rent)
- Key money (1 month’s rent)
- Agency fee (1 month’s rent)
- Advance rent (1 month’s rent)
- Guarantor company fee
- Fire insurance
Additional fees, such as key replacement or support services, may also apply.
Watch out for hidden fees
If you’re having trouble finding a suitable property through other agencies, or if you’ve encountered unclear or unexpected charges, feel free to reach out to us. We’re happy to support you from the very first step of your apartment search, ensuring transparency and peace of mind throughout the process.
