Real estate pricing in Japan

Japan is known for its very expensive real estate world. The initial cost to move into an apartment is very high compared to other countries of the world. In order to give you a better overview and understanding of the fees involved, we prepared this explanatory article about the most common fee :

  • Reikin (礼金) Key money : This is a gratitude fee to pay to the owner when you move in an apartment. It is usually equivalent to 1 or 2 months rent. It is not refundable.
  • Shikikin (敷金) Deposit : This is a security deposit to pay in order to cover the cleaning and potential damages when you will move out your apartment. It is partially refundable depending on the damages you did. It is usually equivalent to 1 or 2 months rent.
  • Hoshougaisha (保証会社) Guarantor company : This is an insurance that will be your guarantor while you live in your apartment. It is mandatory in most cases. IThe initial cost is usually equivalent to 50%~70% of one month rent. Then, you only have to pay 10,000yen per year to extend it. 
  • Kasai Hoken (火災保険) Home insurance : This is a home insurance for your property in case of a fire, flood, etc. It is mandatory and the price ranges usually between 15,000yen to 22,000yen for 2 years. 
  • Kagi Koukan (鍵交換) Key and locks exchanges : Not always mandatory but sometimes required. The fee is usually around 25,000yen.
  • Kuriningu hiyou (クリーニング費用）Cleaning fee : Sometimes required at the contract signature or taken from your deposit at the end. Japan always requires apartments to be cleaned professionally when the tenant leaves. It is not negotiable and is mandatory.
  • Sapooto saabisu (サポートサービス) Support service : a 24 hours service that will help you if an emergency happens at night or when your management company is closed. It is usually around 20,000yen.
  • Chuukai Tessuryo (仲介手数料) Agent fee : Here is the only part that goes to your agent. It is equivalent to one month rent and 10% taxes according to the Japanese rental law.

Some of these fees are mandatory and some others are not. It all depends on what the landlord has decided. It can sometimes be possible for your agent to negotiate with the landlord for some fees, but it can be a delicate matter.

At Jutaku Kouei, we always try to get the best pricing for our customers and always ask landlords and management companies if any fee can be negotiated!

On top of that you will be asked to pay the first month (or two first months) rent.

If you have a low budget for the initial fee, we can help you find an apartment with a very low initial cost ( for example without key money, support service, key exchange, etc.)

We have solutions for each kind of situation and budget so send us a message for more info!