Rent

This is paid monthly in advance to the landlord. A late fee may be exacted if rent is overdue. Upfront payment of the first two calendar months’ worth of rent is generally required as part of the initiation of a lease. Note that any bank transfer fees are also the responsibility of the tenant.

Management (Maintenance) Fee

This is paid every month together with the property rent. The fee covers general building maintenance and in some cases also supplements the cost of an on-site property manager. Not all rental properties will charge a separate management fee.

Deposit

All rental properties in Japan require a security deposit. The size of the deposit may vary from 1-2 months’ worth of rent for smaller apartments up to 4-6 months for more elaborate properties. The deposit is “technically” refundable—in most cases, a portion of the deposit is deducted upon move-out to cover property cleaning and restoration fees. Cleaning/restoration costs can be reduced by careful maintenance of the property.

Key Money

Sometimes also called “gift money” or “gratitude money,” this is a sum paid to the landlord upon initiation of the lease. Key money is a cultural practice with historical roots in Japan, though not all rental properties will charge this. If required, the amount charged is usually one or two months’ worth of rent, and this is nonrefundable.

Agent Fee / Commission

Industry standard dictates that one month’s worth of rent is paid to the real estate agent as commission for securing a housing lease,

Guarantor Company Fee

The vast majority of property leases will require you to also contract with a guarantor company, which acts as a sort of financial insurance for your lease. The amount charged for this will vary depending on the specific guarantor company but generally falls between 40-100% of one month’s worth of rent. (The guarantor company is selected by the landlord and is non-negotiable.)

Fire Insurance Fee

Fire insurance is also mandatory for most properties, and is to be paid by the tenant. This is typically paid as a flat sum which covers the duration of the lease.

EXAMPLE

Rent : 100,000YEN /month
Management fee : 8,000YEN /month
Lease Start Date : September 16