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Japanese Rental Market — How It Works
Japan's rental system involves several upfront costs and requirements that differ significantly from Western markets. Understanding the terminology and process before approaching a landlord or agent saves considerable frustration.
- Reikin (礼金 — Key Money): a non-refundable 'gift' of 0–2 months' rent paid to the landlord; becoming less common in major cities but still exists
- Shikikin (敷金 — Security Deposit): 1–2 months' rent held against damage; largely refundable but deductions for cleaning and minor wear can be aggressive
- Agency Fee (仲介手数料): typically 1 month's rent paid to the real estate agent; legally capped at 1 month but almost universally charged
- Guarantor (保証人 / Hoshounin): traditionally a Japanese national guarantor was required; now often replaced by a guarantee company (保証会社) at a fee of 50–100% of one month's rent paid annually
- Apartments in Japan are typically rented unfurnished — no fridge, washing machine, lighting fixtures, or curtains included
- Most leases are 2-year contracts with renewal fees (更新料) of 1 month's rent every 2 years
- Total initial cost of moving into a ¥100,000/month apartment: approximately ¥500,000–¥700,000 ($3,330–$4,670) including all fees