SATURDAY, JULY 15, 2023
Renting an apartment in Japan can be an exciting and rewarding experience. However, it’s important to be aware of the additional fees and charges associated with the process. Understanding these costs beforehand will help you budget effectively and avoid any surprises. In this blog post, we will explore some of the common additional fees and charges when renting an apartment in Japan.
1. Key Money (Reikin):
Key money, also known as “Reikin,” is a unique feature of the rental market in Japan. It is a non-refundable payment made to the landlord as a gesture of gratitude for allowing you to rent the property. The amount of key money can vary depending on factors such as the location, size, and age of the apartment. Typically, key money is equivalent to one to three months’ worth of rent.
2. Security Deposit (Shikikin):
In addition to key money, landlords in Japan often require tenants to pay a security deposit known as “Shikikin.” The security deposit serves as a form of insurance for the landlord in case of damages or unpaid rent. The amount is usually equivalent to one to three months’ rent. Unlike key money, the security deposit is refundable at the end of the tenancy, provided the apartment is returned in good condition.
3. Agency Fee (Chukai Tesuryo):
If you choose to rent an apartment through a real estate agency, you may be required to pay an agency fee, also known as “Chukai Tesuryo.” This fee is typically equivalent to one month’s rent or a percentage of the annual rent. The agency fee covers administrative costs associated with finding and securing the apartment, as well as drafting the rental contract.
4. Maintenance Fees (Kanrihi):
In many apartments and condominiums in Japan, tenants are required to pay monthly maintenance fees, known as “Kanrihi.” These fees cover the costs of maintaining common areas, such as hallways, elevators, and shared facilities like gyms or gardens. The amount of the maintenance fee varies depending on the building and its amenities.
5. Insurance (Hoken):
While not mandatory, it is common for tenants in Japan to obtain rental insurance, known as “Hoken.” Rental insurance provides coverage for personal belongings, accidental damage to the property, and liability in case of injury to others. The cost of rental insurance depends on the coverage amount and the insurance provider.
Renting an apartment in Japan involves more than just the monthly rent. It’s crucial to be aware of the additional fees and charges that come with the territory. Key money, security deposits, agency fees, maintenance fees, and insurance are all factors that should be considered when budgeting for your new home. By understanding these costs in advance, you can plan effectively and ensure a smooth renting experience in Japan.