When renting an apartment in Japan, you usually need to pay more than just the monthly rent.
At the time of signing the contract, several additional fees are required. These are called initial costs.
For foreigners and first-time renters in Japan, these fees can be confusing because there are many unfamiliar terms.
What Are Initial Costs?
Initial costs are the fees you pay before moving into an apartment. Besides rent, they may include:
- Deposit
- Key money
- Guarantee company fee
- Fire insurance
- Brokerage fee
- Key exchange fee
- Cleaning fee
In Japan, the total initial cost is often around 4 to 6 months of rent, depending on the apartment and management company.
Important:
Even if two apartments have the same rent, the initial costs may be very different. Always check the total amount before applying.
Main Types of Initial Costs
1. Deposit (敷金 / Shikikin)
A deposit is money paid to the landlord as security. It may be used for unpaid rent or damage repairs when you move out.
Part of the deposit may be returned after you leave the apartment.
2. Key Money (礼金 / Reikin)
Key money is a non-refundable payment to the landlord. It is like a “thank you” fee for renting the apartment.
Some apartments do not require key money, but many still do.
3. Advance Rent
You usually pay the first month’s rent in advance. Depending on the move-in date, you may also need to pay:
- Prorated rent
- Next month’s rent
4. Maintenance Fee
This fee is used for cleaning and maintaining common areas of the building. It is usually paid every month together with rent.
5. Agency Fee
This is the fee paid to the real estate agency for introducing the apartment and helping with the contract process.
6. Guarantee Company Fee
In Japan, many apartments require a guarantee company. The guarantee company supports rent payments if problems occur.
Foreign residents are often asked to submit:
- Residence card
- Passport
- School information
- Work information
- Japanese phone number
7. Fire Insurance
Fire insurance protects against accidents such as fire or water damage. Most apartment contracts in Japan require this insurance.
8. Key Exchange Fee🔑
This fee covers changing the locks before you move in. It is mainly for safety and security.
9. Cleaning Fee🧹
Some apartments charge a cleaning fee in advance. This fee is used for cleaning after you move out.
10. Support or Sanitizing Fees
Some apartments also include:
- 24-hour support service
- Resident support service
- Anti-bacterial treatment
- Sanitizing fee
Sometimes these are optional, but in other cases they are mandatory.
Example of Initial Costs
Even for an apartment with rent of ¥40,000, the initial cost may look like this:
| Item | Example Cost |
|---|---|
| Advance Rent | ¥40,000 |
| Guarantee Company Fee | ¥20,000–¥40,000 |
| Fire Insurance | ¥15,000–¥25,000 |
| Key Exchange Fee | ¥15,000–¥25,000 |
| Brokerage Fee | Around 1 month rent |
| Other Fees | ¥10,000–¥50,000 |
Because of this, total initial costs may easily become ¥100,000 to ¥200,000 or more.
How to Reduce Initial Costs
If you want to save money, try searching for apartments with:
- No deposit
- No key money
- Free rent campaigns
- Lower brokerage fees
- Furnished apartments
- Discount campaigns
However, apartments with low initial costs may have penalties for early cancellation. Always check the contract carefully.
Important Points for Foreign Residents
Foreign residents in Japan may need additional documents during apartment screening.
Commonly requested documents include:
- Residence card
- Passport
- Student ID or employment certificate
- Japanese phone number
- Bank account information
- Emergency contact
- Proof of income or bank balance
For international students or people applying from overseas, the number of available apartments may be limited. It is recommended to start searching early.
Final Thoughts
Initial costs are one of the most important parts of renting an apartment in Japan.
Besides rent, there are many additional fees such as key money, guarantee company fees, fire insurance, and brokerage fees.
Before applying, make sure to confirm the total amount, not just the monthly rent.
If you are unsure about apartment contracts in Japan, consulting a real estate company experienced with foreign residents can make the process much easier.
Need Help Finding an Apartment in Japan?
At willow, we support foreign residents looking for apartments in Japan.
We can help explain:
- Initial costs
- Apartment contracts
- Guarantee company screening
- Move-in procedures
- Life support in Japan
We support international students, workers, and people moving from overseas.
Feel free to contact us on LINE for support with daily life in Japan and apartment search!
