When renting a house in Japan, one of the things you need to pay attention to is the upfront cost. Unlike in other countries, where you only need to prepare certain amounts such as deposit and first month’s rent, in Japan, there are so many kinds of expenses that you need to prepare before signing a rental contract. Therefore, in this article, let me introduce you to these expenses!

•  Deposit (敷金):

Like in other countries, when renting a house, you have to pay a deposit in advance to ensure that you will pay the rent monthly and to repair or replace properties if you cause damage during your tenancy. This amount is equivalent to approximately 1 or 2-month rent. The amount of deposit you can get back after finishing the contract is decided on the level of damage of properties that need to be repaired.

• Key money (礼金):

Unlike a deposit, key money is an amount that you don’t get back after your contract is over. It is paid as a greeting or a gratitude towards the landlord. This amount will also be equivalent to 1-month rent. Currently, there are also many places to rent without this kind of money.

•  Management fee / Maintanance fee (管理費/共益費):

This fee is used for maintenance of common facilities of the building such as maintenance of electrical / water equipment, stairs, corridors, etc. Depending on the location, the fee will range from 2000 ~ 10000 yen.

•  Brokerage fee (仲介手数料):

When renting a house in Japan, you usually will not be able to sign a contract directly with the landlord, but go through a third party – a real estate brokerage company. These companies will consult you to choose the right place to live as well as carry out the procedures to sign the contract. Brokerage fee is normally equivalent to 1 or 2-month rent.

•  Guarantor fee (保証金):

If you do not have relatives in Japan who have enough financial capacity to pay the rent when you are unable to pay, you need to find a guarantor company. The brokerage company will help you contact guarantors and the expense you need to pay them will be about 1-month rent.

•  Renewal Fee (更新料):

This is the fee you have to pay if you want to renew your lease (usually equal to 1-month rent).

• Restoration Fee (原状回復費):

• This is a fee for cleaning the house when you move out.

•  Prepaid rent (前家賃):

According to the rules, when signing a rental contract, you must pay the first month’s rent in advance.

•  Key changing fee (鍵交換料):

To ensure the safety of newcomers, changing locks and door keys is highly recommended. The fee to change the key usually ranges from 10,000 ~ 20,000 yen. However, you can also make a request if you do not want to change, but if there is any problem, you will be responsible for it.

•  Insurance fee in case of fire (火災保険料):

This is the insurance premium in case of a fire or explosion that the tenant is obligated to pay. This amount usually ranges from 15,000 ~ 30,000 yen.

The above are just the basic fees that you will have to pay when signing a rental contract in Japan. Based on the amounts we have to pay before renting, it could be 3 or 4 times the rent per month – not a small number, right? Please consider and prepare carefully whenever you decide to move in!