How to Rent an Apartment in Japan: Understanding Key Money, Guarantors, and Contracts

Upfront Costs: Key Money and Deposits

When you move into a new apartment in Japan, the initial costs can be significantly higher than the monthly rent. You will encounter two main types of upfront payments: shikikin and reikin.

Shikikin is the security deposit. This is intended to cover potential damages or unpaid rent at the end of your lease. If the apartment is returned in good condition, a portion of this is typically refunded, though landlords often deduct professional cleaning fees or repair costs from this amount.

Reikin, or "key money," is a traditional non-refundable payment made to the landlord. While some modern apartments labeled "reikin zero" (zero key money) are available, many standard listings still require one to two months' worth of rent as reikin. Because this money is not returned, it is important to factor this into your moving budget.

The Role of the Guarantor

In Japan, landlords require a hoshonin, or a guarantor, to take responsibility for your rent if you fail to pay. A guarantor is usually a Japanese citizen with a steady income who can legally vouch for you.

If you do not have a friend or relative in Japan who meets the landlord's strict requirements, you will likely need to use a guarantor company (hoshonin kaisha). These companies charge an initial fee and an annual renewal fee to act as your guarantor. Most real estate agencies will require you to use their preferred guarantor company during the application process.

Understanding the Rental Contract

Once your application is approved, you will sign a formal lease agreement. There are two main types of contracts: regular term leasehold (teiki shakuyaku) and standard leasehold (futsu shakuyaku). A regular term lease has a fixed end date and does not automatically renew, whereas a standard lease allows for easier renewal.

Pay close attention to the koshinryo, or renewal fee. In many parts of Japan, particularly in Tokyo, it is common to pay one month's rent every two years to renew your contract. Additionally, check the clauses regarding "restoration to original condition" (genjo kaifuku), which dictates how much you will be charged for cleaning or repairs when you move out.

Good to know

• Management fees: Most apartments charge a monthly "kanrihi" or management fee in addition to the base rent.

• Fire insurance: It is almost always mandatory to purchase fire insurance (kasai hoken) when signing a new lease.

• Proof of income: Be prepared to provide employment contracts or payslips to prove your ability to pay rent.

• Check official details: Fees and rules vary by prefecture and agency; always confirm the exact amounts in writing before signing.

Official information

• Immigration Services Agency of Japan
• CLAIR – Multilingual Living Information
• Digital Agency (My Number)

Rules and fees can change. Please confirm the latest details with the official sources above.