Are you excited to start your life in Japan?
Let’s say you find a lovely apartment in your favorite area for ¥60,000 ($382) per month. You might think, “That’s cheap!”
But the moment you go to the real estate agency and see the estimate, you’ll be shocked.
Because the total bill exceeds ¥300,000 ($1,908).
Why is that?
Japan’s rental system has many unique “hidden costs” that are hard for foreigners to grasp. Signing a contract without knowing these can blow your budget and trip up the start of your life in Japan.(These costs are confusing even for us Japanese, so overseas friends I’ve seen before signing contracts were truly baffled.)
This article reveals all the “invisible costs” associated with both standard rentals and share houses.
1. The Initial Cost Trap Unique to Japan
When renting a typical Japanese apartment, it’s standard to pay initial costs equivalent to 4 to 6 months’ rent. Let’s break down the details.
| Fee Name | Typical Cost | Refundable? | Details & Notes |
|---|---|---|---|
| Key Money (Reikin / 礼金) |
1 to 2 months’ rent | NO | A “gratitude” payment to the landlord. |
| Security Deposit (Shiki-kin / 敷金) |
1 to 2 months’ rent | Yes* | Money deposited to cover potential repairs. |
| Brokerage Fee | 1 month’s rent + tax | NO | A fee paid to the real estate agent. |
| Guarantor Company Fee | Initial: 50% to 100% rent Renewal: ~¥10,000 ($64) / year |
NO | To covers rent if you fail to pay. |
| Lock Exchange Fee | ¥15,000 ($95) to ¥25,000 ($159) | NO | Covers replacing locks to prevent using the same keys as the previous tenant. |
Key money (Reikin礼金 / Thank you for letting me rent your room fee 🤣)
This is the most baffling cost for foreigners. It’s a “gratitude” payment to the landlord, meaning “thank you for renting me the room.”
- Typical amount: 1 to 2 months’ rent
- Refund: None (Non-refundable)
- Note: This is an old custom, but it is still common in popular areas especially in eastern Japan.
The origin lies in the severe housing shortage after World War II. At that time, Tokyo and other major cities were burnt to the ground, and there were very few houses left. However, many people flocked to the cities for reconstruction jobs.
Since housing was extremely scarce, desperate tenants paid extra money to landlords as a “bribe” or a “gift,” begging, “Please let me live here instead of someone else.”
Although there are plenty of houses in Japan today, this old custom remains as a mandatory fee called “Reikin”
However, reikin is increasingly being reduced or eliminated even in Tokyo and other parts of the Kanto region.
In this climate, properties requiring two months’ Reikin, for example, tend to be high-quality units that attract tenants despite the costs.
Furthermore, since foreigners naturally find Reikin—an unfamiliar and seemingly arbitrary fee—unacceptable, many agencies only show properties without Reikin to foreign clients.
Security Deposit / Bond (Shiki-kin)
Money is deposited to cover potential repairs to the room.
- Typical amount: 1 to 2 months’ rent
- Refund: Returned after deducting cleaning fees upon move-out, but rarely in full.
Disputes over Shiki-kin deposit refunds are extremely common, even among Japanese tenants.
Due to frequent conflicts, Tokyo enacted its own ordinance. Under this rule, as long as tenants use the property in a manner typical for Japanese residents (not causing significant damage, not damaging walls or floors, not smoking indoors), they should generally receive a full refund.
This is known as the “Tokyo Rule.”
Brokerage Fee
A fee paid to the real estate agent.
- Typical Fee: 0.5-1 month’s rent + tax
Guarantor Company Fee
If you don’t have a Japanese guarantor, joining a guarantor company is mandatory. This applies to most foreigners. In urban areas, it’s practically essential even when dealing with Japanese people.
- Typical cost: 50% to 100% of the monthly rent (initial fee), followed by an annual renewal fee of approximately ¥10,000 ($64).
Lock Exchange Fee
This fee covers replacing locks to prevent using the same keys as the previous tenant.
- Typical cost: ¥15,000 ($95) to ¥25,000 ($159)
- Pro Tip: Often free or very low cost in shared housing.
2. Monthly Hidden Costs
You won’t just be paying rent.
Maintenance Fee / CAM Fee
This covers cleaning common areas like hallways and entrances, plus electricity costs.
Even if a search site displays “Rent ¥50,000 ($318),” the actual cost is often “Rent ¥50,000 ($318) + Maintenance Fee ¥10,000 ($64),” making your monthly payment ¥60,000 ($382).
- Always check the “total amount”.
Renewal Fee
This is the biggest trap. Most rental contracts are for 2 years.
If you decide “I want to keep living here” after 2 years, you need to pay an additional month’s rent.
- Share House Advantage: Many share houses don’t have this renewal fee!
3. Hidden Costs in Share Houses? What to Watch Out For
“So share houses are safe then?”
While they are significantly cheaper than regular rentals, share houses have their own unique costs. Don’t overlook these.
Contract Fee / Administrative Fee
While there’s no “key money” like in regular rentals, many share house companies charge an initial fee of around ¥30,000 ($191) to ¥50,000 ($318).
- Note: This is not a security deposit and will not be refunded when you move out.
Amenity/System Service Fee
Separate from rent, a monthly fee of approximately ¥1,000 ($6) to ¥2,000 ($13) may be charged for shared supplies like toilet paper and detergent.
Bedding Rental
Even if listed as “furnished,” mattresses or futons may not be included, or may be charged separately (e.g., “monthly rental fee ¥2,000 ($13)”). You need to confirm whether you will buy your own bedding or rent it.
Early Termination Penalty
If you move out before the minimum lease period (e.g., 3 or 6 months), you may incur a penalty fee equivalent to one month’s rent. Those planning short-term stays should pay particular attention.
4. Move-out Costs: Amortization
Be aware of the term “Amortization (償却金 / Shokyaku-kin)”.
If the contract states “1 month security deposit (100% amortization)”, you will not get a single yen back from the deposit you paid. It functions essentially like a key money payment.
Additionally, for share houses, it’s common to be charged a flat “cleaning fee (¥15,000 ($95) ~ ¥30,000 ($191))” upon moving out. You must pay this regardless of how clean you kept the room.
Summary: Making Smart Choices
Let’s compare the cost structures of regular rentals and share houses.
| Cost Item | Regular Rental (Apartment) | Share House |
|---|---|---|
| Key Money(Reikin) | Yes (1-2 months’ rent) | No |
| Brokerage Fee | Yes (1 month’s rent) | None but most of them have a Contract Fee( about ¥30,000 ($191) ) |
| Furniture/Appliance Purchase Cost | High (Refrigerator, Washing Machine, etc.) | ¥0 (Provided) |
| Renewal Fee (Every 2 Years) | Yes (1 month’s rent) | No |
| Internet & Utilities | Individual Contract (Expensive/Hassle) | Flat rate or included (Easy/Cheaper) |
Comparison of living in an average Tokyo apartment/condo with a ¥100,000 monthly rent
| Item | Standard Apartment | Share House |
|---|---|---|
| Monthly Rent | ¥100,000 ($636) | ¥100,000 ($636) |
| Maintenance Fee | ¥15,000 ($95) | ¥15,000 ($95) *Includes Utilities & Wi-Fi |
| Initial Costs (Move-in Fees) | ||
| Key Money (Reikin) | ¥100,000 ($636) (1 mo) | 0 |
| Deposit (Shikikin) | ¥200,000 ($1,272) (2 mos) | 0 |
| Agency Fee | ¥110,000 ($700) (1.1 mo) | 0 |
| Guarantor / Ins. / Locks | approx. ¥90,000 ($572) | 0 |
| Contract / Cleaning Fee | 0 | ¥50,000 ($318) |
| Total Initial Cost | approx. ¥500,000 ($3,180) | ¥50,000 ($318) |
| Total Cost for 2 Years | ||
| Rent + Maint. (24 mos) | ¥2,760,000 ($17,554) | ¥2,760,000 ($17,554) |
| Furniture & Appliances | ¥200,000 ($1,272) | 0 (Furnished) |
| Utilities & Wi-Fi | approx. ¥360,000 ($2,290) (~¥15,000 ($95)/mo) |
0 (Included) |
| Renewal & Move-out | approx. ¥110,000 ($700) | approx. ¥30,000 ($191) |
| Grand Total (2 Years) | approx. ¥3,930,000 ($24,995) | approx. ¥2,840,000 ($18,063) |
If you want to save on “¥100,000 ($636) to ¥200,000 ($1,272) in initial costs” and avoid the hassle of buying furniture, a share house is definitely recommended.
However, when choosing a share house, always ask these three questions:
- “Is the contract fee refundable?” (Is the contract fee refundable? → Usually no)
- “Is there a penalty if I move out within 3 months?” (Is there a penalty for moving out within 3 months?)
- “Are there any mandatory monthly fees besides rent and utilities?” (Are there any mandatory monthly fees besides rent and utilities?)
Don’t get fooled by Japan’s complex rental system! Spend your money wisely and start enjoying your life in Japan!
