Introduction
For many foreigners moving to Japan, one of the biggest surprises is the initial cost required to rent an apartment in Tokyo.
Unlike in many other countries, renting a property in Japan usually requires several upfront payments in addition to the first month’s rent.
Understanding these initial costs in advance can help expatriates prepare financially and avoid unexpected expenses when moving to Tokyo.
In this guide, we explain the typical initial costs of renting an apartment in Tokyo and what international residents should expect during the rental process.
Typical Initial Costs in Tokyo
When renting an apartment in Tokyo, tenants usually pay several fees before moving in.
Typical upfront costs include:
- Security deposit
- Key money
- Real estate agency fee
- First month’s rent
- Guarantee company fee
- Fire insurance
In many cases, the total initial cost can reach three to five months of rent.
For example, if the monthly rent is ¥200,000, the total initial payment could be between ¥600,000 and ¥1,000,000.
Security Deposit (Shikikin)
The security deposit, known in Japanese as shikikin, is a refundable payment made to the landlord when signing the lease agreement.
The deposit is usually equivalent to one or two months of rent.
At the end of the lease, part of the deposit may be deducted for cleaning fees or repairs, and the remaining amount is returned to the tenant.
Key Money (Reikin)
Key money is a traditional payment in Japan given to the landlord as a form of gratitude.
Unlike the security deposit, key money is not refundable.
Key money is usually equivalent to one month of rent, although some modern apartment buildings no longer require this payment.
Properties with no key money are becoming more common, especially in newer buildings.
Real Estate Agency Fee
When renting an apartment through a real estate agent, an agency fee is usually charged.
The typical fee is one month’s rent plus tax.
This fee covers services such as:
- Property introduction
- Coordination with the landlord or management company
- Preparation of the rental contract
Real Estate Agency Fee
When renting an apartment through a real estate agent, an agency fee is usually charged.
The typical fee is one month’s rent plus tax.
This fee covers services such as:
- Property introduction
- Coordination with the landlord or management company
- Preparation of the rental contract
Guarantee Company Fee
Many landlords in Japan require tenants to use a guarantee company instead of a traditional personal guarantor.
The guarantee company acts as a financial guarantor for the rental contract.
The initial guarantee fee is usually around 50% to 100% of one month’s rent, with a smaller renewal fee each year.
This system is very common and is especially helpful for international residents who do not have a Japanese guarantor.
Fire Insurance
Tenants are usually required to purchase fire insurance before moving into an apartment.
This insurance covers potential damage caused by fire, water leaks, or other accidents.
The cost is typically ¥15,000 to ¥25,000 for a two-year contract.
Example of Total Initial Cost
Here is a simple example of typical initial costs for an apartment with monthly rent of ¥200,000.
- First month’s rent: ¥200,000
- Security deposit: ¥200,000
- Key money: ¥200,000
- Agency fee: ¥220,000 (including tax)
- Guarantee company fee: ¥100,000
Total initial cost: approximately ¥920,000
Actual costs vary depending on the property and landlord conditions.
Tips for Reducing Initial Costs
Some apartments offer lower initial costs.
For example:
- Properties with no key money
- Properties with reduced deposits
- Campaign properties with discounted agency fees
Working with a real estate agent can help identify apartments with more flexible rental conditions.
Looking for an Apartment in Tokyo?
If you are planning to move to Tokyo and are searching for rental apartments, Aoki Real Estate Tokyo can assist you.
We specialize in helping international clients find apartments in central Tokyo, including Minato-ku areas such as Azabu, Hiroo, Shiba, and Mita.
Our services include:
- Apartment search support
- Communication with property owners
- Explanation of rental contracts in English
- Guidance throughout the rental process
If you would like assistance finding a suitable apartment in Tokyo, please feel free to contact us.
Contact Aoki Real Estate Tokyo