What cost you don’t need to pay for rent in Japan?

What cost you don’t need to pay for rent in Japan?

The answer is quite simple.

It depends on the property.

You need to pay the expenses that the specific property demands if you want to move in. Let me explain in more detail. 

For instance, there’s “礼金” (key money), which is different from “敷金” (deposit). Unlike “key money” “deposit” is a non-refundable cost. From the renter’s perspective, it’s an expense they’d rather not have to pay. On the other hand, property owners prefer to collect “key money” if possible. So, how do you know whether a property requires “key money” or not? It depends on the owner’s preference but, in most cases, it depends on the property’s popularity. If a property is in high demand, many potential renters will view it, and even if there’s “key money,” someone will still move in. Therefore, the owner’s decision and the popularity of the property influence the various costs.

Of course, a property’s popularity doesn’t necessarily mean it’s the right fit for everyone. When searching for a property, make sure to communicate your preferences. For example, you might prefer a property within a 10-minute walk from the train station with no “deposit” or “key money” required and no need for a guarantor. You might also want a furnished property for immediate occupancy. We can provide property information that matches your preferences within 10 minutes of receiving your requirements via email.

What Are Initial Costs?

Initial costs refer to the expenses that you need to pay before moving into a rental property in Japan to finalize the lease agreement. Initial costs typically include the following items:

• 敷金 (deposit): “deposit” is a security deposit paid when entering into a rental contract, usually equivalent to one to two months’ rent. If the property is left in good condition with no damage upon vacating, a portion or the entire amount is generally refunded.
• 礼金 (key money): “key money” is a form of gratuity or courtesy payment made when entering into a rental contract, separate from “deposit.” It typically amounts to one to two months’ rent and is often non-refundable.
• Other Expenses: Initial costs may also include items such as fire insurance premiums, guarantee fees, key replacement costs, and cleaning fees, depending on the property and contract terms. As mentioned earlier, these initial costs can vary depending on the property.

Who do you pay the Initial cost to?

The property owner collects the initial costs. Real estate agencies like ours receive a referral fee from the property owner each time we introduce a customer. Therefore, in most cases, we do not collect fees from customers. We will inform you in advance if there are any cases where we cannot receive a referral fee from the property owner.

Searching for a property in Japan can be challenging for foreigners. We value communication with our customers and are here to answer any questions you may have.

What Type of Property Would I Choose if I Were Searching for My Own?

If I were searching for my own property, the most important factor would be whether I like the property and the area. I place a high importance on the location. Since I have children, proximity to good schools is essential, and I also enjoy shopping and dining, so I would choose an area with nearby stores and restaurants. However, I also prefer a quiet environment, so I would look for a location that provides easy access to the city center while being peaceful. I may be a bit selective. Regarding costs, the significant expenses are “deposit” (shikikin), “key money” (reikin), and guarantee fees. Therefore, I would choose a property that either follows the market rates or does not require these payments. Other expenses are not typically large amounts, so I would make my decision based on a property that I like.