When renting an apartment in Japan, the biggest hurdle for many is the high initial cost. Generally, you are expected to pay 4 to 6 months’ worth of rent upfront, which can be a significant financial burden for international students and new workers.
To reduce this burden, “Zero Deposit and Zero Key Money” (Zero-Zero) properties are becoming increasingly popular. At willow Inc., we provide an expert look at how to save on moving costs and what to watch out for when choosing a low-cost apartment.
1. Understanding “Initial Costs” in Japan
In Japan, the upfront payment consists of several items. Here is a quick breakdown:
- Shikikin (Security Deposit): A refundable deposit for cleaning or repairs when you move out.
- Reikin (Key Money): A non-refundable “gratitude” payment to the landlord.
- Agency Fee: The commission paid to the real estate company.
- Advance Rent: Rent for the first month of your stay.
- Insurance & Guarantor Fees: Mandatory fees for fire insurance and guarantor company services.
2. The Benefits of Zero Deposit & Zero Key Money
The primary advantage is drastically reducing your immediate cash outflow.
- Move in with less savings: You can secure a room even with a limited budget, which is ideal for those arriving shortly after receiving their COE.
- Spend more on essentials: Use the money you saved to buy furniture, appliances, or daily necessities for your new life.
3. Things to Watch Out For (The Cons)
Low upfront costs usually come with certain conditions. Be sure to check these points before signing:
- Cleaning Fees at Move-out: Since you didn’t pay a deposit, you may be billed for a fixed cleaning fee when you vacate the room.
- Slightly Higher Monthly Rent: Some landlords offer lower initial costs by adding a small premium to the monthly rent.
- Short-term Cancellation Penalty: Many low-cost contracts require you to stay for at least one year; otherwise, you may have to pay a penalty (usually 1 month’s rent).
💡 Pro Tips to Save Even More
- Look for “Free Rent” deals: Some properties offer 1 or 2 months of rent for free, which significantly cuts your initial payment.
- Move in mid-month: Since rent is often “pro-rated” (calculated by day), moving in late in the month reduces your first payment.
- Choose the right partner: At willow Inc., we help you find properties with flexible terms tailored to international residents.
👉 Need a cheap area? Check out our guide on affordable neighborhoods in Osaka and Tokyo.
📱 [Free] Get an Initial Cost Estimate
Send us the URL of a property you like on LINE, and we will give you a free estimate of the total initial costs! Consult with willow on LINE (English Support)