Up-front Costs for Renting an Apartment in Japan

When renting a property in Japan, there are several move-in costs you’ll need to cover. Understanding these costs in detail can help you choose a property and navigate the contract process smoothly. Below, we outline the major up-front costs involved in renting a house or apartment in Japan.

Up-front Costs for Renting an Apartment

The costs can vary depending on the type of property, the region and which real-estate agency you use, but generally, the following costs are common:

Security Deposit (Shikikin) 

The security deposit, known as shikikin, is a guarantee paid when renting a property. It is usually equivalent to 1 to 2 months’ rent. This deposit covers damages or repair costs incurred during the rental period, as well as professional cleaning fees upon moving out. If the property is returned in good condition and the contract terms are followed, the deposit, minus the cleaning fee, is refunded. Even if you clean the property yourself, it is generally difficult to avoid the cleaning fee.

Key Money (Reikin) 

Key money is a non-refundable fee paid to the landlord as a token of appreciation, usually equivalent to 1 to 2 months’ rent. Originally given as a gratuity, it has become a customary practice that cannot be refused. However, recently, there has been a trend to eliminate key money, and more properties are now advertised with zero key money.

Agency Fee 

The agency fee is paid to the real estate agent for brokering the rental agreement, typically equivalent to one month’s rent. Recently, some properties offer reduced or zero agency fees.

Advance Rent 

Advance rent must be paid before moving in. It includes the first month’s rent and a prorated amount for the days from move-in until the end of that month. For instance, if you move in on January 10th, you’ll pay for 20 days of January and all of February’s rent in advance. Rent for subsequent months is usually paid via bank transfer by a specified date each month.

Key Exchange Fee

In Japan, it’s common to change the locks for each new tenant. The cost, which the new tenant pays, varies depending on the door type, ranging from a few thousand yen to several tens of thousands of yen. Even if you don’t want to change the locks, it’s often mandatory for security reasons.

Fire Insurance 

Fire insurance is usually required when signing a rental contract. This insurance often covers not only fires but also earthquakes, typhoons, and theft. In addition to covering the building itself, the insurance typically covers loss or damage to personal belongings. The cost varies but is typically around 20,000 yen per year, and you need to maintain coverage throughout your tenancy. You can choose any fire insurance that meets the contract requirements.

2. Possible Additional Costs

Depending on the rental property, there may be additional costs such as:

Sterilisation Fees

You might be charged for pest control and sterilisation before moving in, usually around 10,000 to 20,000 yen. However, it’s often just a spray application by the real estate management company, so it’s advisable to verify what the fee covers. You can refuse this service if it’s unnecessary.

Tatami Mat Refurbishing Fee 

If you’re renting a place with tatami rooms, you might be charged for re-facing the tatami mats, which helps with pest control and sun damage. You can also decline this service if not needed.

Air Conditioner Cleaning Fee 

Air conditioners are usually left by the previous tenant unless they are broken. You might be charged a cleaning fee, which is generally around 10,000 yen per unit. This fee can also be declined if you don’t find it necessary.

3. Estimate of Move-in Costs

The total move-in costs for renting an apartment in Japan vary by property and region. Here’s a general estimate:

For instance, for a property with a monthly rent of 100,000 yen, the total move-in cost might be around 400,000 to 600,000 yen. Additionally, consider moving expenses and purchasing furniture and appliances.

Renting a property in Japan can be quite expensive, especially for short-term stays, but various housing options are available for those who find the move-in costs challenging. The article “Renting an Apartment in Japan | All Steps You Should Do” introduces various housing options for those who find it difficult to cover these costs. It’s important to choose a property and rental style that fits your budget.

When renting a property in Japan, be prepared for various move-in costs, including a security deposit, key money, agency fee, and more. Also, check for any additional potential costs before signing the contract.