Short answer: moving into a Japanese apartment usually costs 4 to 6 months' rent upfront. That covers the deposit (shikikin), key money (reikin), the agency fee, the guarantor company's initial fee, fire insurance, lock exchange and your first month's rent. Only the deposit is partly refundable. Most landlords also ask foreign tenants to use a guarantor company, which charges an initial fee plus a renewal fee. This guide explains each fee, the guarantor system, typical contract terms and how to cut the bill.
Breakdown of Upfront Renting Fees
An estimate (見積もり) from an agent lists several separate items. Here is what they mean:
| Fee Name (Japanese) | Typical Cost | Is it Refundable? | Description |
|---|---|---|---|
| Deposit (Shikikin - 敷金) | 0 to 2 months' rent | Partly (minus cleaning/repair costs) | Held by the landlord against unpaid rent or damage beyond normal wear. The balance is returned after you move out. |
| Key Money (Reikin - 礼金) | 0 to 2 months' rent | No | A non-refundable "thank-you" payment to the landlord. Still common in big cities, but many listings now have none. |
| Agency Fee (Chūkai Tesūryō - 仲介手数料) | 0.5 to 1 month's rent + tax | No | The agent's commission. By law it is capped at one month's rent plus tax. Without your prior consent, the agent may charge you only half a month. |
| Guarantor Company Fee (Hoshō Gaisha - 保証会社) | 50% to 100% of 1 month's rent at the start, then a renewal fee | No | Paid to the company that guarantees your rent. After the initial fee, expect a renewal fee, often about ¥10,000 a year or a small monthly charge, depending on the company. |
| Lock Exchange Fee (Kagi Kōkan-dai - 鍵交換代) | ¥15,000 to ¥25,000 | No | Covers changing the locks before you move in. |
| Fire Insurance (Kasai Hoken - 火災保険) | ¥15,000 to ¥20,000 (for 2 years) | No | Required by almost every contract. Covers fire, water leaks you cause, and personal liability. |
| First Month's Rent (前家賃) | 1 month (often prorated for the move-in month) | No | Rent is paid in advance, so the next month is often collected at signing as well. |
Monthly Costs Beyond the Rent
- Common-area/management fee (共益費 kyōeki-hi or 管理費 kanri-hi): usually ¥2,000 to ¥10,000 a month on top of the advertised rent, for cleaning, lighting and maintenance of shared areas. Always compare rent plus this fee.
- Utilities: electricity, gas and water are in your name and billed separately. See our utilities setup guide.
- Guarantor renewal: remember the annual or monthly guarantor charge when budgeting.
The Guarantor System (Rentai Hoshōnin vs. Guarantor Company)
Japanese landlords want someone who will pay if you cannot. There are two ways to provide that:
- Joint Guarantor (Rentai Hoshōnin - 連帯保証人): a person in Japan with stable income, usually a relative, who co-signs and is fully liable for your debts. Most newcomers have no one to ask.
- Guarantor Company (Hoshō Gaisha - 保証会社): a company that guarantees your rent for a fee. Today most landlords require one, and many insist on it even if you have a personal guarantor. It screens you first, usually by checking your residence card, income or school status, and an emergency contact.
No guarantor and getting rejected? Our guide to renting in Japan without a guarantor covers foreigner-friendly guarantor companies, UR housing and other options.
Contract Terms to Check Before You Sign
- Contract length and renewal fee (更新料 kōshinryō): standard leases run for 2 years. Renewing often costs about one month's rent, especially in the Tokyo area.
- Early termination penalty (短期解約違約金): many contracts charge a penalty, typically one month's rent, if you leave within the first year. Check this if you might leave after graduation.
- Notice period: usually one month's written notice before moving out (sometimes two).
- Move-out cleaning: some contracts fix a cleaning fee that is deducted from the deposit regardless of condition.
Reading a Japanese Listing
- Walking time: "徒歩5分" (5 minutes on foot) is calculated at 80 metres per minute, the industry standard. It ignores traffic lights and hills, so the real walk is often longer.
- Zero-zero (敷金・礼金なし): no deposit and no key money. Cheaper upfront, but check for higher cleaning fees or a short-stay penalty.
- Free rent (フリーレント): the first 1 to 2 months are rent-free, usually with an early-termination penalty attached.
Tips for Reducing Upfront Renting Costs
- Search for zero-zero apartments: skipping key money and deposit can cut hundreds of thousands of yen. Plan the monthly side with our Budget Calculator.
- Ask about the agency fee: some agencies charge half a month or run zero-commission campaigns. Remember the legal one-month cap.
- Consider UR public housing: UR apartments charge no key money, no agency fee and no renewal fee, and do not require a guarantor, but they do have income or savings requirements.
- Use English-speaking agencies: agencies that specialise in foreign residents know which landlords accept foreigners, which saves rejected applications.
- Start with a share house: for a short stay, share houses rarely charge key money or agency fees and come furnished. Compare the two in our share house vs apartment guide.
Once you have the keys, register your new address at the ward office within 14 days. See our ward office registration guide.
Frequently Asked Questions
How much money do I need to rent an apartment in Japan?
Plan for 4 to 6 months' rent upfront. For a ¥70,000 apartment, that is roughly ¥280,000 to ¥420,000, depending on deposit, key money and the agency fee. Zero-zero listings can bring it down to about 2 to 3 months' rent.
Is key money (reikin) refundable?
No. Key money is a non-refundable payment to the landlord. Only the deposit (shikikin) is returned, minus cleaning and repair costs.
Can foreigners rent in Japan without a Japanese guarantor?
Yes. Most landlords now use guarantor companies instead of personal guarantors. You pay an initial fee of about 50% to 100% of one month's rent plus a renewal fee. UR housing does not require a guarantor at all.
What happens if I break my lease early?
Give the required notice, usually one month. Many contracts also charge a penalty, typically one month's rent, if you leave within the first year. Check the cancellation clause (解約条項) before signing.