Upfront Costs When Renting in Japan — And How to Reduce Them
Living in Japan
2026.01.02
Upfront Costs When Renting in Japan — And How to Reduce Them
Moving to Japan is an exciting journey, but the apartment-hunting process can be a financial culture shock. Rental customs in Japan are quite different from those in many other countries, and Japan has a unique system of fees that must be paid upfront at the time of contract signing.
In this guide, I explain the upfront costs of renting in Japan and share practical tips for keeping initial expenses down. Since customs and market practices vary across Japan, this guide focuses on typical trends in the Tokyo metropolitan area.
As a rule of thumb, you should prepare to pay 4 to 6 months’ worth of rent at the time of signing. For example, if your monthly rent is ¥100,000, you will likely need ¥400,000 to ¥600,000 available in your bank account.
These upfront payments are called initial costs (初期費用 / shoki hiyō) and are paid at the time the lease contract is executed.
Breakdown of Initial Costs in Japan (What You’re Paying For)
Below are the most common fees you may see on a Japanese rental invoice.
1) Advance Rent (Prepaid Rent)
It is standard practice in Japan to pay one month of rent upfront. If you move in mid-month, you may also be required to pay pro-rated rent for the remaining days of that month.
In Japan, rent is typically paid by automatic bank transfer. If you do not yet have a Japanese bank account and cannot set up automatic withdrawal at the time of contract, you may be required to prepay additional rent until the bank setup is completed.
2) Maintenance / Management Fee (管理費・共益費)
If your listing shows rent plus a separate management or maintenance fee, this fee covers shared building expenses, such as:
Cleaning of common areas
Elevator maintenance
Lighting in hallways
Building management services
This fee is often collected together with the advance rent at the time of contract.
3) Security Deposit — Shikikin (敷金)
This is a partially refundable deposit held by the landlord to cover:
Unpaid rent
Cleaning costs
Repairs beyond normal wear and tear
Deductions at move-out are common. The typical range is 1–2 months of rent, though some listings require no deposit.
Details regarding move-out settlements and repair charges will be explained in a separate article.
4) Key Money — Reikin (礼金)
Key money is a non-refundable payment made to the landlord, sometimes described as a “thank-you” gift.
Many expats assume that a “gift” should be optional, but when key money is listed as a condition, it is mandatory in order to rent the property.
That said, no–key-money listings are not uncommon.
Popular, high-demand properties often require key money because landlords can be selective.
Properties that have been vacant for a long time may remove key money to attract tenants.
In that sense, key money can sometimes reflect a property’s popularity or market demand—though there are also many excellent properties with no key money at all.
5) Agency Fee — Chūkai Tesūryō (仲介手数料)
This is the brokerage fee paid to the real estate agency at contract signing. It covers services such as:
Initial consultation
Property search and viewings
Contract explanation and coordination
Key handover
The commonly referenced maximum is up to one month’s rent + tax.
6) Guarantor Company Fee (保証会社費用)
Most rentals require a guarantor company, especially for foreign tenants.
The initial fee is usually 50–100% of one month’s rent, with possible renewal fees later. For those who are new to Japan or do not yet have a Japanese bank account, 100% of one month’s rent is quite common.
7) Insurance (Fire & Liability Insurance)
Most leases require tenant insurance, usually purchased as a 2-year policy.
This insurance typically covers:
Fire damage
Water leaks
Personal liability (damage caused to neighboring units)
Many tenants forget about this insurance after moving in, but if something unexpected happens during your stay, you should always check whether the insurance applies. If needed, I can also assist with contacting the insurance company and handling claims. (Not all real estate agents provide post-move-in support, so this is something to confirm in advance.)
8) Key Exchange / Lock Replacement Fee
Many landlords or management companies charge a one-time lock replacement fee at move-in, typically ¥15,000–¥30,000.
FAQ: Can this fee be skipped? Technically, it is not legally mandatory. However, most management companies insist on it for security and liability reasons. If the locks are not changed, the previous tenant may still have a spare key.
Note: For high-security dimple keys or smart locks, the fee may be higher and replacement is usually mandatory.
9) “Optional” Fees That Often Appear
Depending on the property and management company, you may also see:
These fees vary widely and are another reason why comparing total move-in cost is more important than rent alone.
Fee Summary Table (Japan)
Fee Item
Japanese Name
Refundable?
Security Deposit
Shikikin (敷金)
Yes (partially)
Key Money
Reikin (礼金)
No
Agency Fee
Chūkai Tesūryō (仲介手数料)
No
Guarantor Fee
Hoshō-gaisha Hiyō (保証会社費用)
No
Average Move-in Costs in Tokyo
Tokyo’s rental market is premium. Below is a practical budget guideline.
Apartment Type
Avg. Monthly Rent
Estimated Total Upfront Cost
Studio (1K / 1R)
¥80,000 – ¥120,000
¥320,000 – ¥720,000
1BR (1LDK)
¥120,000 – ¥250,000
¥480,000 – ¥1,500,000
2BR (2LDK)
¥200,000 – ¥350,000
¥800,000 – ¥2,100,000
Real-Life Simulation: Renting a ¥200,000 1LDK in Tokyo
Example invoice for a high-end 1LDK in Shibuya or Minato:
Rent: ¥200,000
Security Deposit (1 mo): ¥200,000
Key Money (1 mo): ¥200,000
Agency Fee (1.1 mo): ¥220,000
Advance Rent (1 mo): ¥200,000 *Depending on your move-in timing
Guarantor Company Fee (1 mo): ¥200,000
Fire Insurance & Lock Exchange: ¥40,000
TOTAL ESTIMATE: ¥1,260,000
FAQ: Can I Negotiate Initial Costs?
Yes, negotiation is possible—but it must be handled carefully.
You can ask for rent reductions or waivers of key money. However, aggressive negotiation may cause the landlord to view you as a “difficult tenant,” which could negatively affect screening results.
If a property has been vacant for a long time, or if the landlord’s situation allows flexibility, negotiations may succeed. This is why it’s best to consult your agent first, as agents often know which properties are negotiable.
If you’d like to learn about common obstacles foreigners face when renting in Japan, please see this article.
Moving in July, August, or November gives you more leverage. During peak season (January–March), landlords receive many applications and rarely negotiate.
However, properties that remain vacant after March often prompt landlords to become more flexible—making them good negotiation targets.
Timing Affects Cash Required
Because you may need to pay pro-rated rent plus a full month in advance, your move-in date affects how much cash is required upfront.
In some cases, moving in at the very beginning or end of a month may reduce the immediate payment. However, this depends on whether automatic bank transfer is already set up, so it is always case by case.
The steps for opening a bank account in Japan will be covered in a separate article.
Renewal Fees: One Thing to Keep in Mind
While not part of the initial move-in costs, renewal fees are an important factor to consider for future expenses—especially if you plan to stay for more than two years. In Japan, residential leases are typically for two years, and at the time of renewal it is common to pay a renewal fee equivalent to one month’s rent. That said, some properties do not charge a renewal fee. For this reason, whether or not a renewal fee applies can be an important decision point when searching for a property, particularly if you want to keep long-term housing costs down.
Have You Considered Buying Instead?
In Japan, depending on the area and the property, some homes can be purchased at surprisingly accessible prices—for example, studio units under ¥10 million and 1LDK units starting in the ¥10 million range.
If you later move out, you can sell or rent out the property. Unlike rent, which is purely an expense, purchasing creates an asset.
For foreign buyers paying in cash, purchasing can sometimes be easier than renting. If you are considering Japan as an investment destination, buying may be worth exploring. I also assist with property purchases.
Reduce Costs by Preparing Before You Arrive
During the period between arriving in Japan and securing a home, many people stay in serviced apartments or hotels, which means paying high short-term rent on top of the upfront move-in costs.
If you start searching for a home only after arriving in Japan, the timeline to move in can vary depending on your situation, but even in the fastest cases, it usually takes around two weeks, and in many cases three weeks to a month or more before you can move into a long-term rental.
To reduce these expenses and shorten the temporary stay, preparing as much as possible before arriving in Japan is essential. Having the required documents ready in advance can also make the rental process much smoother and help shorten the overall timeline.
I can support the entire rental process fully online, allowing you to complete the contract before your arrival if needed.
For a step-by-step overview of the rental process in Japan and a list of required documents, please refer to this article.
Japan’s rental system may feel surprising compared to your home country, but understanding the costs and preparing in advance can greatly reduce stress.
I can support you from before your arrival in Japan, including area and property recommendations, online viewings, and even completing the lease contract fully online. By understanding your priorities and situation, I aim to help you find a home that truly fits your needs—while also proposing practical ways to keep your overall costs as low as possible. I provide tailored property searches based on your budget and situation, along with practical advice and negotiation strategies.
Initial consultation is completely free, so please feel free to reach out if you’d like personalized guidance.
