- May 27, 2025
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Renting an apartment in Japan involves several upfront costs, and key money is just one of them. For newcomers, Japanese real estate terms like “reikin,” “shikikin,” and “agency fees” can be confusing. Even if you’ve found the perfect apartment, it’s important to fully understand the initial expenses. This guide explains the typical rental fees in Japan to help you prepare before visiting a real estate agency.
If you are interested in monthly cost, please refer to below.
Table of Contents
Quick Video Guide
1. Quick overview of 6 important keywords
When calculating the initial rental fees in Japan—including key money—these six terms are commonly encountered when visiting a real estate agency.
| Keywords | Definition | Kanji | Refundable | Estimated Cost/1 bed room |
|---|---|---|---|---|
|
SHIKI-KIN |
Security Deposit |
敷金 |
YES* |
1-2 month’s rent |
|
REI-KIN |
Key Money |
礼金 |
No |
1-2 month’s rent |
|
MAE-YACHIN |
1st Month Rent in advance |
前家賃 |
No |
1 month rent |
|
CHUKAI-TESURYO |
Agency’s Fee |
仲介手数料 |
No |
0.5-1 month rent |
|
HOSYOKAISHA-TESURYO |
Guarantor Fee |
保証会社手数料 |
No |
0.5-1 month rent |
|
KASAI-HOKENRYO |
Fire Insurance |
火災保険料 |
Yes** |
15,000-20,000 yen |
*Depends on the cleanness of vacated room, Shiki-kin might not be refunded.
**Depends on the remaining duration of contract.
2. 6 keywords and its definition
Keyword #1 – SHIKI-KIN(敷金)
The security deposit is intended to cover unforeseen situations like unpaid rent or property damages. When you move out, the cost of cleaning and restoring the property to its original condition is deducted from the deposit, and any remaining funds are refunded to you. Typically, the security deposit, known as ‘Shiki-kin,’ equals one to two months’ rent.
Keyword #2 – REI-KIN(礼金)
Rei-kin, also known as key money, is a gratuity fee paid to the landlord as a traditional gesture of appreciation. Unlike a security deposit, key money is non-refundable and usually amounts to one to two months’ rent.
Keyword #3 – MAE-YACHIN(前家賃)
In Japan, it is common to pay the 1st month rent in advance. At the time of signing the contract, you will pay the rent for the month following the month in which the lease contract begins.
Keyword #4 – Chukai-Tesuryo(仲介手数料)
Commission paid to real estate company, for helping find your property. In average, it equals half of monthly rent.
Keyword #5 – Hoshyogaisha-Tesuryo(保証会社手数料)
When you rent a property, you will be asked to have a guarantor. For some properties, landlord will ask you to use guarantor company, rather than asking your friend to be a guarantor. In this case, you are required to pay the company initial guarantor fee. For some properties, the tenant is requested for both a friend and a company as a guarantor.
Keyword #6 – Kasai-Hokenryo(火災保険料)
This is fire insurance, and is mandatory to enroll at the time of the contract. Typically, You’ll pay the insurance for two years all at once. Fire insurance usually covers two key aspects: the ‘building’ (comprising the main structure and its associated components) and ‘household possessions’ (including electronics, furniture, clothing, and other items found within the building). In typical cases, landlords already have insurance for the building, it is requested for tenants to have insurance which covers the household possessions. If you pay the insurance at once, it’s possible to get a refund upon moving out. The amount refunded upon termination may vary based on the remaining duration, please ensure the term and condition before paying the insurance.
What is included in initial fee?
When all six fees are added up, the initial cost to rent an apartment in Japan typically amounts to about four to five months’ rent. However, to help lower upfront expenses, some properties no longer require key money (Rei-kin) or a security deposit (Shiki-kin). In these cases, tenants may instead be charged a non-refundable cleaning fee or face a slightly higher monthly rent. It’s important to consider not only the initial fees but also ongoing rent and move-out costs when budgeting for an apartment.
To sum up, when searching for a property in Japan, it’s essential to consider six main costs that make up the initial rental expenses—this includes key money, security deposits, agency fees, and more. Typically, these initial fees add up to at least four months’ worth of rent, so it’s wise to budget for at least five months’ rent when planning to rent an apartment in Japan. Before visiting a real estate agency, be sure to familiarize yourself with the key terms, including key money, to better prepare for negotiations and avoid unexpected costs.
