Understanding Japanese Apartment Fees: Key Money, Deposits, and Guarantor Systems

Renting an apartment in Japan is famous for its high upfront costs and unique terminology. Unlike many Western countries where you only need to pay a security deposit and the first month's rent, moving into a Japanese apartment typically requires paying four to six months of rent upfront. For international students and foreign residents, navigating these fees and finding a guarantor can be major challenges. This guide breaks down the essential fees and systems you will encounter during your apartment search in Japan.

Breakdown of Upfront Renting Fees

When you receive a quote for a Japanese apartment, it will list several distinct items. Here is what they mean:

Fee Name (Japanese)	Typical Cost	Is it Refundable?	Description
Deposit (Shikikin - 敷金)	1 to 2 months' rent	Yes (minus cleaning/damage fees)	Held by the landlord to cover any repairs or unpaid rent. The remaining balance is returned when you move out.
Key Money (Reikin - 礼金)	1 to 2 months' rent	No	A non-refundable gratitude payment to the landlord. Historically a gift, it is still standard in many traditional contracts.
Agency Fee (Chukai Tesuryo - 仲介手数料)	0.5 to 1 month's rent (+ tax)	No	The commission fee paid to the real estate agent who showed you the apartment and handled the paperwork.
Guarantor Fee (Guarantor Company - 保証会社)	50% to 100% of 1 month's rent	No	An annual fee paid to a guarantor company to secure your lease. Most landlords require this for foreigners.
Lock Exchange Fee (Kagi Kokan-dai - 鍵交換代)	¥15,000 to ¥25,000	No	The cost to change the locks before you move in, ensuring safety and security.
Fire Insurance (Kasai Hoken - 火災保険)	¥15,000 to ¥20,000 (for 2 years)	No	Mandatory insurance covering fire, water leakage, and personal liability.

The Guarantor System (Lian-tai Hoshonin vs. Guarantor Company)

In Japan, you cannot rent an apartment without a guarantor who agrees to pay your rent if you default. There are two types of guarantor systems:

Joint Guarantor (Rentai Hoshonin - 連帯保証人): A Japanese citizen with a stable income (usually a relative) who signs the contract. For most foreigners, this is not an option as they do not have family members in Japan.
Guarantor Company (Hoshoninhansha - 保証会社): An institution that acts as your guarantor for a fee. Today, over 80% of landlords require a guarantor company even if you have a joint guarantor. The company will run a credit check and background screening on you before approval.

Tips for Reducing Upfront Renting Costs

If the upfront cost is too high, there are ways to minimize the expenses before signing:

Search for "Zero-Zero" Apartments: Look for properties advertised with zero key money (Reikin) and zero deposit (Shikikin). This can instantly shave off hundreds of thousands of yen from your start-up budget. You can calculate your monthly budget balance using our Budget Calculator.
Negotiate the Real Estate Agent Fee: Some agencies charge 0.5 months of rent instead of the full month, or run promotional periods with zero agency fees.
Consider Share Houses First: If you are planning a short stay, look into share houses. They rarely charge key money or agency fees, and they usually come fully furnished. Learn more in our paths finder tools.