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Key Money (礼金)

Key money, or reikin (礼金), is a non-refundable gratuity paid to the landlord when signing a lease. It’s not a deposit and will not be returned.

Why It Exists

This practice started post-WWII, when housing was scarce and tenants offered money to thank landlords. It's still common in high-demand areas, but newer listings often waive it.

  • Typical Range: 1 to 2 months’ rent
  • Negotiable: Yes, especially in newer or foreigner-friendly listings

Security Deposit (敷金)

Security deposit or shikikin is refundable and used for unpaid rent, cleaning, or minor damage repair.

  • Typical Range: 1 to 2 months’ rent
  • Common Deductions: Cleaning, repairs, lost keys

In small leases, landlords may ask for more key money instead. In business leases, deposits help build trust without a guarantor.

Rent Guarantee Companies

Instead of a guarantor, most landlords ask tenants to sign with a rent guarantee company. This is common for foreigners.

  • Major Providers: Nihon Safety, GTN, J-lease, Casa
  • How it Works: You pay the company, they pay the landlord
  • Initial Fee: 50–100% of one month’s rent
  • Monthly Fee: ?500–?1,200

Agency Fee (仲介手数料)

This is a non-refundable commission paid to the real estate agency.

  • Standard: 1 month’s rent + 10% tax
  • Refundable: No, even if you cancel

Other Fees

Common Additional Rental Fees

Fee Amount Description
Cleaning Fee ?20,000–?50,000 One-time or from deposit
Maintenance ?3,000–?10,000/尘辞苍迟丑 Shared building costs
Lock Exchange ?10,000–?20,000 Security measure
Fire Insurance ?15,000–?20,000 2-year coverage
Renewal Fee 1 month’s rent Common in Tokyo area

Example Cost Breakdown (Tokyo ?80,000 Rent)

Tokyo Rental Example

Item Amount Notes
Rent ?80,000 First month
Key Money ?80,000 One-time
Deposit ?0 None
Agency Fee ?88,000 Incl. tax
Maintenance ?5,000 Monthly
Lock Exchange ?15,000 One-time
Fire Insurance ?18,000 2 years
Guarantor Fee ?40,000 50% rent
Total ?326,000 ~4.1x rent

No Key Money Scenario

No Key Money Example

Item Amount Notes
Rent ?80,000 ?
Key Money ?0 Waived
Deposit ?0 Waived
Agency Fee ?88,000 ?
Maintenance ?5,000 ?
Lock Exchange ?15,000 ?
Fire Insurance ?18,000 ?
Guarantor Fee ?40,000 ?
Total ?246,000 ~3.1x rent

Tokyo vs Osaka

Rental Comparison: Tokyo vs Osaka

Item Tokyo (?120K) Osaka (?80K) Notes
Key Money ?120,000 ?0–?40,000 Often waived in Osaka
Deposit ?0–?120,000 ?40,000 Preferred in Osaka
Agency Fee ?132,000 ?88,000 Incl. tax
Guarantor Fee ?60,000 ?40,000 ~50% rent
Other Fees ?20碍–?40碍 ?15碍–?30碍 Lock/Cleaning
Fire Insurance ?18,000 ?18,000 Same nationwide
Total ?350碍–?490碍 ?246碍–?326碍 Osaka cheaper

Frequently Asked Questions

No, it’s legal but optional. It’s more common in older or high-demand units.

Yes. Most foreigners use a guarantor company instead of a personal guarantor.

The best time is between May and August, when there is less competition and more chances to negotiate on fees. Avoid February to April, which is the peak moving season due to job transfers and school enrollments.

It usually takes 1 to 3 weeks after signing the lease to move in. The timeline depends on the cleaning schedule, lock change, and how fast the guarantor company approves your application.

Some offer no key money, deposit, or agency fee — but other basic fees still apply.

Generally not. However, foreigner-friendly guarantor companies like GTN may cost more due to extra services.

Yes. Pet-friendly listings often charge extra rent and/or additional key money.

Conclusion & Links

Japan’s rental system can seem complex, but once you break down the costs, it's manageable. Use this guide to estimate and compare upfront costs.

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