Housing Deposits and Key Money in Japan Explained
New to Japan’s rental system? This guide explains key money (reikin) and security deposits (shikikin). Learn typical costs, what’s refundable, how deposit deductions work, regional differences, and practical ways to reduce your upfront payment—without surprises.
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Key terms you’ll see on listings
- Security deposit (敷金 / shikikin): Money you pay the landlord at contract signing. It’s used to cover unpaid rent and tenant-caused damage; the remaining balance is returned after move-out. A common guideline is about two months’ rent, though it varies by area and building.
- Key money (礼金 / reikin): A non-refundable one-time payment to the landlord at signing—think of it as a “thank you” fee. It’s often 1–2 months’ rent in the Kanto region (Tokyo area), and some listings have none at all.
- Agency fee (仲介手数料): Commission paid to the real estate agency mediating the lease. Official guidance sets this within one month’s rent (plus tax).
- Renewal fee (更新料 / kōshinryō): In many areas (especially Kanto), leases renew every two years and may include a renewal fee (often around one month’s rent) if stated in the contract. Japan’s Supreme Court upheld the validity of renewal fee clauses in July 2011.
- Guarantor / guarantee company: Most landlords require a personal guarantor or a guarantee company. If you use a company, expect an extra fee at signing (structure and amounts vary).
For Tokyo-specific “rule-of-thumb” ranges—including deposit, key money, brokerage fee, insurance premiums—see the Tokyo Metropolitan Government’s English FAQ for newcomers.
Along the way, you’ll find helpful internal links to related guides like Tenant rights in Japan, Guarantors and rental contracts in Japan, Lease renewal and moving out, and Renter’s insurance in Japan so you can dig deeper as you go.
How much do you really pay upfront?
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) tells newcomers to plan for about four to seven months of rent at signing. This includes the first month’s rent, deposit, key money, agency fee, insurance, and other fees.
Typical upfront items at a glance
| Cost item | Typical range | Refundable? | Why it’s charged |
|---|---|---|---|
| First month’s rent | 1 month | No | Pay rent in advance |
| Security deposit (shikikin) | ~2 months (varies) | Yes (minus valid deductions) | Covers unpaid rent and tenant-caused damage |
| Key money (reikin) | 0–2 months (often 1–2 in Kanto) | No | Non-refundable gift to landlord |
| Agency fee | Up to ~1 month (+ tax) | No | Paid to the real estate broker |
| Damage/fire insurance | ¥10,000–¥20,000 (typ.) | No | Tenant liability & fire coverage |
| Guarantor/guarantee fee | Varies by firm and rent | No | Required when no personal guarantor |
| Common service/management | ¥5,000–¥15,000 monthly (varies) | No | Building common area upkeep |
| Lock change fee | ¥10,000–¥20,000 (sometimes) | No | Changing cylinders after turnover |
Sources: MLIT newcomer guide (deposit, key money, insurance, agency fee, total range) and TMG’s English FAQ (Tokyo ranges). Lock change practices vary; responsibility for routine lock changes vs. tenant-caused loss/damage is clarified in Tokyo’s dispute-prevention guidelines (see “Who pays” below).
Planning your budget? Cross-check these ranges with current listings. Then read our Finding an apartment in Japan, Cost of living in Japan 2025, and Best neighborhoods in Tokyo for expats guides for practical price anchors.
What happens to your deposit at move-out
The deposit is meant for unpaid rent, tenant-caused damage, and any agreed special charges. In principle, the remaining balance is returned to you after move-out.
Restoration of original condition—the key rule
Japan uses a simple split of responsibility:
- Landlord pays for normal wear and tear and aging (e.g., sun-faded wallpaper, appliances reaching end of life).
- Tenant pays for damage you caused (e.g., cigarette burns, pet scratches, failure to clean leading to heavy grime), or for damage that got worse because you didn’t report or maintain it.
Tokyo’s official dispute-prevention booklet also clarifies that special contract clauses that push extra restoration costs to the tenant are not always valid—to be enforceable, they must meet strict tests of necessity and clear consent.
Before you sign, ask the agent to explain in writing how restoration is handled and whether any special “cleaning” or “deodorizing” fees are already pre-agreed. Keep a dated photo checklist at move-in and move-out to support a fair settlement. MLIT explicitly recommends doing this inspection with the agent or landlord.
For more on preparing smart, see Lease renewal and moving out, Trash and recycling in Japan, and Apartment maintenance tips.
Regional differences you should know
- Kanto (Tokyo area): Key money is often 1–2 months, and renewal fees are common on two-year contracts (when stated). Some listings advertise “no key money.”
- Kansai / Tokai / Kyushu: You’ll sometimes see non-refundable restoration fee systems (敷引 / shikibiki)—a set amount of the deposit that will not be returned at move-out. It must be clearly described in the contract.
If you want a smoother landing with lower upfronts, compare sharehouses (often furnished and cheaper to start) or target “no key money” properties on portals. See Sharehouses in Japan and Finding an apartment using real estate websites.
Renewal fees in plain English
If your lease includes a renewal fee clause, you’ll be asked to pay it when you renew (often every two years). In 2011, Japan’s Supreme Court confirmed that such clauses are valid if they are stated in the signed contract. That means your choice is really at the signing stage: if you prefer not to pay renewal fees, search for “no renewal fee” listings before you sign.
For Kanto newcomers, our Renting an apartment in Tokyo, Tenant rights in Japan, and Lease renewal and moving out guides are essential reading.
Who pays for lock changes, small repairs, and cleaning?
The Tokyo guidelines break this down with examples:
- Lock changes:
- If the tenant lost or damaged the key/lock → tenant’s cost.
- If the lock is changed as part of normal turnover or for a new tenant (no tenant fault) → landlord’s cost.
- Appliances and fixtures:
- When an appliance simply reaches end of life → landlord.
- If damage happened because the tenant didn’t use/maintain properly → tenant.
- Bathroom scale/rust buildup caused by poor cleaning → tenant; routine disinfection of toilets → landlord.
These principles matter when the deposit is settled. If a charge isn’t clearly your responsibility, you can point to the official rules. For disputes, Tokyo’s consultation services and general advice lines can help; nationwide, the National Consumer Affairs Center of Japan (NCAC) also offers resources and ADR routes.
What does a fair deposit deduction look like?
A reasonable settlement:
- Inspection together (you + landlord/agent), comparing move-in vs. move-out condition.
- Itemized statement listing only tenant-responsible repairs (not ordinary wear/aging).
- Return of balance from your deposit after valid deductions.
If your contract includes a pre-agreed professional cleaning fee, make sure it’s clearly stated. If a clause tries to make you pay for all restoration “regardless of cause,” it may be invalid unless it meets the strict tests explained in Tokyo’s booklet. When in doubt, ask your agent to show the legal basis or consult a local support center.
Bookmark our deeper dives: Tenant rights in Japan and City Hall 101: address registration and local services.
Sample scenarios: what you might pay
These are examples to help you think in ranges. Always check your own contract and listing.
Scenario A: 1K in suburban Tokyo
- Rent: ¥75,000; Management fee: ¥5,000
- Deposit: ¥75,000 (1 month)
- Key money: ¥75,000 (1 month)
- Agency fee: ¥82,500 (1 month + tax)
- Guarantor fee (example): ¥60,000
- Fire/damage insurance: ¥15,000 (2-year policy)
Upfront total ≈ ¥382,500 (~5.1× monthly rent including fees)
This example closely mirrors the Tokyo Metropolitan Government’s own sample for “initial expenses” with deposit, key money, brokerage, and guarantor fees.
Scenario B: No key money, smaller deposit listing
- Rent: ¥95,000; Mgmt: ¥8,000
- Deposit: ¥95,000 (1 month)
- Key money: ¥0
- Agency fee: ¥104,500 (~1 month + tax)
- Guarantor fee: varies; many firms charge a percentage of rent and renew annually
- Insurance: ¥18,000
Upfront total ≈ 3–4× monthly rent, depending on the guarantee plan.
MLIT’s newcomer guide says overall upfronts commonly sit around 4–7 months of rent, so if your number is far higher, ask what can be negotiated (e.g., key money, agency fee promotions, or different listings).
For budgeting help, see Cost of living in Japan 2025 and Budgeting apps for expats.
How to reduce your upfront cost (without headaches)
- Target “no key money” properties. They’re increasingly common in many markets—even in Kanto.
- Compare agency fee campaigns. While the legal cap is around one month’s rent (+ tax), some firms run half-month or zero-fee promotions on select units. Verify what’s included and what’s not.
- Consider a sharehouse for Month 1–3. Furnishings, utilities, and low initial costs help you land softly while you search long-term.
- Clarify guarantor company fees up front. Fee structures vary; ask for the full schedule (initial + annual renewal).
- Read the “special agreements” carefully. Push back on blanket restoration clauses; Tokyo’s guidance shows they aren’t automatically valid.
- Photograph everything at move-in. MLIT explicitly recommends documenting condition to avoid unfair deductions later.
You might also like Finding international groceries in Japan and Setting up utilities in Japan. Getting settled early can prevent small issues from becoming costly repairs.
FAQ: quick, clear answers
Is key money mandatory by law?
No. It’s a custom set by the market and the contract. Many places (especially outside Kanto) have no key money, and even in Kanto you can find “no reikin” listings.
Can the agency charge more than one month?
The official guidance sets the agency fee within one month’s rent (plus tax). If you see more, ask for the legal basis and a breakdown.
What if my landlord demands I pay for sun-faded wallpaper?
Fading from sunlight is normal wear/aging—the landlord’s responsibility in Tokyo’s guidelines, not a tenant-charge restoration. Point to the official rule.
Do I really have to pay a renewal fee?
Only if your contract has a renewal fee clause. If it does and you signed it, courts have upheld such clauses (2011 Supreme Court decision). Consider “no renewal fee” listings next time.
What if we disagree about deposit deductions?
Start by discussing with the agent and citing the restoration of original condition rules. If you’re stuck, Tokyo offers consultation services; nationwide, the NCAC can point you to advice/ADR options. Keep your inspection photos and the itemized bill.
If this is your first lease in Japan, pair this guide with Guarantors and rental contracts in Japan, Tenant rights in Japan, and Ultimate Expat Housing Guide in Japan.
A quick checklist before you sign
- Confirm the big three: deposit amount, key money amount, agency fee amount (and tax).
- Ask about restoration and cleaning: ordinary wear vs. tenant damage, any pre-agreed “cleaning/deodorizing” fees.
- Check for renewal fee: whether it exists, how much, and when it’s due.
- Understand guarantor requirements: personal vs. company, fee schedule, and annual renewals.
- Verify insurance: typical premiums and what’s covered.
- Photograph the unit at move-in: do a joint inspection if possible.
You’re not alone in this—Tokyo even has an Ordinance for the Prevention of Residential Rental Disputes that requires brokers to explain restoration and maintenance responsibilities ahead of time in covered contracts. If things go sideways, the Governor can admonish non-compliant brokers and even publicize their names. That framework exists to protect renters like you.
Final thoughts
Japan’s rental system looks complex at first, but once you understand the roles of security deposits and key money, it becomes predictable. Use official ranges to budget, choose listings that match your preferences (no key money, no renewal fee, etc.), and protect your deposit with good documentation. With this guide—and our related posts like Renting in Japan: avoiding scams, Setting up utilities in Japan, and Earthquake safety at home—you’ll be confident from the first viewing to the day you get your deposit back.
