When transferring to Japan, many foreigners are shocked by the quite a few charges and upfront prices related to renting an condo. In addition to the month-to-month hire, tenants are sometimes required to pay a number of one-time charges that may add as much as a major sum. Here’s a breakdown of what you’ll be able to anticipate when renting an condo in Japan.
Key Money (礼金, Reikin)
Key cash, or “reikin” in Japanese, is a non-refundable price paid to the owner as a token of gratitude for permitting you to hire the property. This price is usually equal to at least one or two months’ hire and is paid earlier than transferring in. While this follow has been declining lately, particularly in Tokyo the place almost 40% of rental properties are actually reikin-free, it’s nonetheless frequent in lots of elements of Japan.
Deposit (敷金, Shikikin)
The deposit, or “shikikin,” is a refundable price that serves as a safety deposit. It is normally equal to at least one or two months’ hire and is returned to the tenant on the finish of the lease, offered there isn’t a harm to the property past regular put on and tear.
Agency Fee (仲介手数料, Chūkai Tesūryō)
If you utilize an actual property company to search out your condo, you’ll need to pay an company price. This price is usually equal to at least one month’s hire plus tax and covers the price of the agent’s providers to find and securing the condo for you.
Guarantor Fee (保証人, Hoshōnin)
Many landlords in Japan require tenants to have a guarantor, who’s liable for paying the hire if the tenant defaults. If you don’t have a Japanese guarantor, chances are you’ll want to make use of a guarantor firm, which is able to cost a price usually starting from 30% to 100% of 1 month’s hire.
Maintenance Fee (メンテナンス費用, Mentenansu Hiyō)
Some residences cost a upkeep price to cowl the price of sustaining frequent areas, such because the foyer, elevators, and out of doors areas. This price can range extensively however is usually round ¥10,000 to ¥20,000 per thirty days.
Insurance (火災保険, Kasai Hoken)
Renters in Japan are required to have fireplace insurance coverage, which covers harm to the property in case of fireside, explosion, or different specified dangers. The value of this insurance coverage varies relying on the dimensions of the condo and the extent of protection however usually ranges from ¥10,000 to ¥20,000 for a two-year coverage.
Lock Exchange Fee (鍵交換費用, Kagi Kōkan Hiyō)
When transferring into a brand new condo, chances are you’ll be required to pay a lock trade price to cowl the price of changing the locks. This price can vary from ¥10,000 to ¥30,000.
Renewal Fee (更新料, Kōshinryō)
If you select to resume your lease after the preliminary time period (normally two years), chances are you’ll be required to pay a renewal price. This price is usually equal to at least one month’s hire and is paid to the owner.
Real-World Examples
To illustrate how these charges can add up, let’s have a look at an actual instance. In 2023, a foreigner seeking to hire a 1LDK condo within the Tamagawa space, on the border between Yokohama and Kawasaki, discovered a comparatively new property with a month-to-month hire of ¥151,000 plus an ¥8,000 administration price. The upfront prices have been as follows:
- First month’s hire and administration price: ¥159,000
- Deposit: ¥151,000
- Key cash: ¥151,000
- Agency price: ¥151,000
- Key trade price: ¥20,000
- Guarantor price (half-month): ¥75,500
- Maintenance price: ¥45,000
- Fire insurance coverage: ¥15,000
The complete upfront value got here to ¥767,500, or greater than 5 occasions the month-to-month hire. Of this, solely the ¥151,000 deposit was refundable.
Another instance comes from a tenant who moved right into a 3LDK condo in Shizuoka in 2022. The complete upfront value was ¥350,000, plus a ¥90,000 early termination price if the tenant left earlier than the tip of the two-year lease.
Strategies for Reducing Costs
While the upfront prices of renting in Japan might be daunting, there are methods for decreasing these bills:
- Look for properties that don’t cost key cash or have decrease deposits and company charges. This is extra frequent in city areas like Tokyo.
- Negotiate with the owner or agent to waive or cut back sure charges. This is extra probably to achieve success when you have a steady earnings and may reveal that you can be a dependable tenant.
- Consider utilizing a month-to-month rental assure service as an alternative of paying a big upfront guarantor price. These providers usually cost a smaller month-to-month price (round ¥3,000 to ¥5,000) as an alternative of a giant one-time fee.
- Look for properties managed by UR (Urban Renaissance Agency), a semi-governmental company that gives residences with decrease upfront prices and no key cash.
Renting an condo in Japan entails a lot of upfront charges that may be a shock to foreigners accustomed to less complicated rental programs.
However, by understanding these charges and using methods to scale back them, it’s attainable to search out an inexpensive condo and handle the prices of renting in Japan. While the system could seem complicated and costly at first, it’s a actuality of life in Japan that the majority tenants study to navigate with time and expertise.