If you’re an American trying to transfer to Japan, you could encounter a singular facet of the Japanese rental system often called reikin (礼金), or “gratitude money.” This non-refundable payment is paid by tenants to landlords upon signing a lease.
In this text, we’ll discover what reikin is, why it exists, and what you could know earlier than renting in Japan.
What is Reikin?
Reikin is a one-time fee made to the owner as an indication of gratitude for permitting the tenant to lease the property. It is often equal to 1 or two months’ lease, though the precise quantity can differ. Unlike safety deposits, reikin shouldn’t be refunded on the finish of the rental interval.
When is Reikin Paid?
Tenants pay reikin to the owner earlier than shifting into the rental property. It is often paid together with different upfront prices, equivalent to the primary month’s lease and safety deposit.
Why Did Reikin Become Common Practice?
The origins of reikin will not be solely clear, however there are a couple of theories:
- Post-World War II Housing Shortage: Some consider that reikin turned widespread as a result of extreme housing scarcity in Japan after World War II. With extra tenants than obtainable properties, landlords had the higher hand in selecting renters. Tenants started providing further funds to safe housing and specific their gratitude.
- Great Kantō Earthquake of 1923: Another idea means that reikin gained reputation after the devastating 1923 earthquake within the Kantō area, which led to a housing scarcity.
- Industrialization: Some argue that reikin emerged throughout Japan’s interval of speedy industrialization, as individuals moved to cities for work and competed for restricted housing.
Current Trends in Reikin
In current years, there was a shift in direction of reikin-free rental properties in Japan. In Tokyo, practically 40% of rental listings don’t require reikin. The metropolis of Osaka has additionally seen fluctuations within the share of landlords charging this payment.
Related Terms
When renting in Japan, you could encounter different charges and deposits:
- Hoshōkin (保証金) and shikikin (敷金): These are refundable deposits paid firstly of the rental interval and returned on the finish, assuming the property is in good situation.
- Kōshinryō: This is actually one other reikin fee made when renewing a lease.
- Shikibiki: In Osaka, some landlords “pull” cash from the shikikin as a substitute of charging a renewal payment.
Can Your Application Be Rejected for Not Paying Reikin?
Whether or not paying reikin is critical depends upon the owner and the property. Some landlords could reject functions from tenants who’re unwilling to pay reikin, whereas others could also be extra versatile. It’s important to debate this together with your actual property agent or landlord earlier than making use of.
Is Reikin Refundable?
No, reikin shouldn’t be refundable. It is taken into account a present to the owner and isn’t returned on the finish of the rental interval, even when the tenant leaves the property in glorious situation.
Reikin for Investment Properties
Investors trying to buy rental properties in Japan ought to be conscious that charging reikin is authorized. It is extra widespread for high-rent properties, newer models, and people in prime areas. Currently, the standard reikin fee is the same as one month’s lease.
Reikin is a singular facet of the Japanese rental system that Americans shifting to Japan ought to be ready for. While not all properties require it, understanding what reikin is and the way it works is crucial for navigating the rental course of. As with any worldwide transfer, analysis and communication with native consultants may help guarantee a clean transition.