Initial costs of renting in Tokyo
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Initial costs of renting in Tokyo
There is more than just rent and a deposit to pay when your sign your rental contract in Japan. Brace yourself with our breakdown of upfront fees for apartments in Japan.
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Credit: Gregory David Lane licensed under .
This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
In Japan, you are expected to make a down payment of around four or even five times your monthly rent when signing a rental contract. This can come as quite a shock for most of us who only expect the first month of rent and deposit (also known as bond). Here is a breakdown of the fees.
1. Agency fee
Most agents charge 1 month’s worth of rent plus tax as the standard agency fee, also known as 仲介料 (chūkai-ryō) in Japanese. While upsetting for many from other countries, this is common in Japan. If you are lucky, you might find agents that are willing to accept half a month for less popular units.
2. Key money
Key money or 礼金 (reikin) in Japanese is probably the most dreaded payment. Usually one month’s worth of rent, it is considered a gift to the landlord and not refundable. In reality, the landlord uses part of it to pay the agent for their services – who usually demand around half a month’s worth of rent for finding a new tenant. If you are unwilling to pay it, ask your agent to search only for properties without reikin — more and more landlords are willing to drop it.
3. Deposit or bond
Same as in the West, the deposit (or 敷金, shiki-kin, in Japanese) covers any damage you might cause to the apartment and typically a cleaning fee will be deducted from it when you move out. One month’s worth of rent is the standard, sometimes two for more high-end properties or if you keep pets. The remainder will be refunded to you.
4. First month of rent
Added to these fees will be also your first month of rent, which is due before you move in. Other fees that might also be required include fire insurance, lock replacement fee, and guarantor company fee, which together can sum up to another month of rent.
If you are only staying in Japan for a short time, it might not be worth shelling out several months of rent, and a short-term rental or guesthouse might be a better choice.
By Mareike Dornhege
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This article and the above linked articles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
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