1. Introduction: Renting in Japan Can Be Surprisingly Expensive
If you're planning to rent an apartment in Japan, you might be shocked by how high the initial costs are compared to your home country.
For foreigners, the unfamiliar fees and unique systems can make the process even more confusing.
This article breaks down all the initial costs involved in renting a place in Japan, highlights what foreign residents should watch out for, and provides practical tips to save money. Whether you're moving for work, study, or long-term stay, this guide is here to help.
2. Breakdown of Initial Rental Costs
When signing a rental contract in Japan, tenants often face several costs beyond monthly rent. Here's a breakdown of the most common expenses:
| Item | Description | Typical Cost |
|---|---|---|
| Shikikin (Deposit) | Refundable deposit used for cleaning or repairs when you move out | 1–2 months' rent |
| Reikin (Key Money) | Non-refundable gratuity paid to the landlord | 1–2 months' rent |
| Agency Fee | Commission for the real estate agency | 1 month's rent + tax |
| Guarantor Company Fee | Alternative to a personal guarantor | 0.5–1 month's rent |
| Fire Insurance | Mandatory insurance to cover accidents and disasters | ¥10,000–20,000/year |
| Prepaid Rent | Rent for the first month (or pro-rated) | ~1 month's rent |
In total, initial costs can amount to 4–6 months' worth of rent. For example, if your rent is ¥70,000, you might pay over ¥300,000 just to move in.
3. Points That Often Confuse Foreign Renters
● Reikin (Key Money): A Cultural Barrier
Reikin is a unique Japanese practice where tenants pay a non-refundable fee to the landlord as a "thank you." Many foreigners find this puzzling or even unfair. Fortunately, "No Key Money" (Reikin Zero) listings are becoming more common and are popular among foreign renters.
● Guarantor System and Alternatives
In Japan, landlords usually require a guarantor (a Japanese resident) who will take financial responsibility if the tenant fails to pay rent. For most foreigners, this is not feasible.
As an alternative, guarantor companies are widely accepted. These companies act as your guarantor for a fee and often require a screening process. They're a practical solution for foreign renters without local connections.
● Contracts Written in Japanese
Rental agreements are usually written in Japanese and full of technical legal terms. Even with machine translation, understanding the fine print can be very difficult.
We highly recommend working with real estate agencies that offer multilingual support (English, Chinese, Vietnamese, etc.).
4. How to Save on Initial Costs
The cost of moving in can be overwhelming, but there are ways to reduce it:
- Look for listings with "Reikin Zero" (No Key Money)
- Choose agencies with reduced or no commission
- Opt for furnished apartments to save on furniture and appliances
- Consider share houses that include utilities and require low upfront costs
- Take advantage of seasonal promotions (first month free, discounts, etc.)
Check property listing sites and agency websites regularly to find deals.
5. Preparing Funds: Before and After Arriving in Japan
● Opening a Bank Account in Japan
To rent an apartment or manage daily expenses, opening a Japanese bank account is essential. Here's a basic process:
- Register your residence at the city/ward office and obtain a Certificate of Residence (Juminhyo)
- Bring your Residence Card and Juminhyo to a bank
- Complete the paperwork; your cash card will be mailed in 1–2 weeks
Required documents:
- Residence Card
- Certificate of Residence (issued within the last 3 months)
- Japanese phone number (for contact purposes)
Some banks may require a basic level of Japanese for identity verification, so bringing a Japanese-speaking friend can be helpful.
● Dormitories for Students and Technical Interns
For international students and technical trainees, school- or employer-provided dormitories are often available.
These dorms usually require little to no initial cost, and many come with furniture, Wi-Fi, and meals. While privacy may be limited, they offer excellent value and simplify the moving process.
6. Conclusion
Japan's rental system is filled with unique rules and costs unfamiliar to many foreigners.
Initial costs can be a significant burden if you're not prepared. But with proper knowledge, you can avoid unnecessary expenses.
Multilingual support from real estate agencies can make the process smoother. If you're ever unsure, don't hesitate to consult local government help desks or international support services.
By preparing in advance and choosing the right resources, you can start your new life in Japan with confidence.