What are the initial costs of apartment payments in Japan?
The initial deposit costs for an apartment in Japan can be quite high, and can range from 4 to 6 months of rent. This includes the security deposit, key money, and real estate brokerage fees.
Let’s learn more about the payments and what are they for.
APARTMENT RENT (Yachin 家賃)
The monthly rent set by the apartment owner.
The amount does not vary depending on the real estate company. (e.g.) Daily rent for the current month + daily rent for the following month
MAINTENANCE FEE (Kyoekihi 共益費)
Money used for maintenance and upkeep of common areas.
In some cases, it is included in the rent. (e.g.) daily rate for the current month + the following month’s rate
SECURITY DEPOSIT (Shikikin 敷金)
The security deposit is usually one to two months’ rent, and is used to cover any damages to the apartment when the tenant moves out.
The amount not used may be returned when the tenant moves out. (Example: 1 month’s rent)
KEY MONEY (Reikin 礼金)
Key money is a non-refundable payment that is traditionally given to the landlord as a gift. The amount of key money is usually one to two months’ rent, but it can be more in some cases.
Note that Key Money is not returned when the tenant moves out. (Example: 1 month’s rent)
REAL ESTATE BROKERAGE FEE (Chukai Tesuryo 仲介手数料)
The real estate brokerage fees are paid to the real estate agent who helps you find an apartment. The amount of the fee is usually one month’s rent.
If a brokerage is requested but no contract is concluded, the brokerage fee is not charged. (e.g.) 1 month’s rent
KEY REPLACEMENT COST (Kagi Kokan Hiyo)
This is the cost to renew the locks. The amount ranges from ¥15,000 to ¥35,000.
GUARANTOR FEE (Hoshonin Hiyo 保証人費用)
This is a commission to a guarantee company. This fee is charged when you use a guarantee company to stand as your guarantor when signing a lease contract. Especially for tenants who doesn’t have a Japanese resident to act as their guarantor.
(Example) (1) Initial ￥21,600 → 1% of (rent + common service charge) per month
(2) 50% of (rent + common service charge) for the first time → ￥10,000/year
Some apartments allow tenants to look for their own, some apartments have a partner insurance company. Tenants must also pass the screening when signing a contract.
FIRE INSURANCE (Kasai Hoken 火災保険)
Fire insurance covers property damage caused by fire. The policy covers buildings, furniture, merchandise, precious metals, etc.
Some apartments allow tenants to look for their own, some apartments have a partner insurance company.
CONTRACT RENEWAL (Koshinryo 更新料)
Apartments are typically leased for two-years and should the tenant wish to renew the contract, there will be a renewal fee which costs around 50-150% of the monthly rent.
It is important to note that these are just the initial costs, and there may be other costs associated with renting an apartment in Japan, such as utilities, furniture rental, and moving expenses.
Here are some tips for reducing the initial deposit costs:
- Look for apartments that do not require key money.
- Ask the real estate agent if they offer any discounts or promotions.
- Consider renting a furnished apartment.
- Do your own moving to save on moving costs.
By following these tips, you can reduce the initial deposit costs and make renting an apartment in Japan more affordable.
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