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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: the company guarantees your rent to the landlord, and you pay the company a fee;
  • Initial Fee: usually 50–100% of one month's total rent (rent plus management fee), or a flat fee from about ¥20,000;
  • After That: either a yearly renewal of about ¥10,000–¥20,000, or a monthly fee of about 1–3% of the rent, depending on the company.

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, which is also the legal maximum an agent may charge for a rental;
  • 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/month 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 ¥20K–¥40K ¥15K–¥30K Lock/Cleaning
Fire Insurance ¥18,000 ¥18,000 Same nationwide
Total ¥350K–¥490K ¥246K–¥326K Osaka cheaper

Furnished or Unfurnished Apartment?

Most long-term rentals in Japan are unfurnished, and often emptier than newcomers expect.

Furnished Unfurnished
Usually included Bed or futon, fridge, washing machine, microwave, table, air conditioning, often Wi-Fi Stove (gas or induction) and often an air conditioner; no fridge, washing machine, curtains or even ceiling lights
Rent Higher, often 20–30% above a comparable unfurnished flat Lower
Upfront costs Low: fewer fees and nothing to buy High: the fees above, then furniture and appliances
Best for Stays under about a year: students, interns, working holiday Long-term residents and families

Furnished options include monthly apartments (マンスリーマンション), share houses and serviced apartments. For a stay of 6 to 12 months, an unfurnished flat with rented furniture can work out between the two.

How Much Does It Cost to Furnish an Apartment?

Furnishing a one-room (1K) apartment

Budget Estimated cost What you get
Basic ¥100,000–¥250,000 Mostly second-hand, essentials only
Mid-range ¥250,000–¥500,000 A mix of new furniture and appliances
Premium ¥500,000 and more New, higher-end furniture and appliances

The essentials are a bed or futon, a fridge, a washing machine, ceiling lights and curtains, then a microwave, a rice cooker, a table and storage. Measure the room, the doors and the washing machine space before buying: Japanese apartments are small.

Where to buy

  • New: Nitori, IKEA and the large electronics stores such as Yodobashi Camera, which often sell discounted appliance "starter sets" in spring;
  • Second-hand: recycle shops such as Hard Off and Off House, and the Mercari and Jimoty apps, where used goods are generally in good condition;
  • Rental: monthly furniture and appliance rental services, worth comparing for stays under two years.

Costs people forget

  • delivery and installation fees for large appliances;
  • disposal fees: old fridges, washing machines and air conditioners must be recycled through a paid scheme, and large furniture is collected as oversized rubbish (粗大ごみ) for a fee;
  • delivery delays in the March and April moving season.

See our guide to disposing of oversized rubbish.

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.

After You Sign: Setting Up Your New Home

Once the lease is signed, set up these services before you move in:

  • electricity, which can be started online, with some providers in English;
  • city gas, which needs a technician visit to open the supply;
  • water, through your local waterworks bureau;
  • internet, which can take weeks if fiber has to be installed;
  • a SIM card or mobile plan, if you do not have one yet.

No personal guarantor? See our guide to guarantors in Japan.