Japan Apartment Initial Costs Explained: What Foreigners Actually Pay (2026)

Moving into a new apartment in Japan comes with significant upfront costs that can catch foreigners off guard. Unlike renting in most Western countries, Japanese leases typically require a large lump-sum payment before you even get the keys. This guide explains exactly what you will pay, why each fee exists, and how to minimize costs as a foreign renter.

Written by a licensed real estate agent (宅建士) based in Tokyo. The figures and explanations below are based on current market practice and first-hand experience helping foreign clients navigate the Japanese rental system.

Table of Contents

• Overview: How Much Will You Pay?
• Shikikin (敷金) — Security Deposit
• Reikin (礼金) — Key Money
• Agency Fee
• First Month’s Rent and Pro-Rata
• Guarantor Insurance Fee
• Fire Insurance
• Lock Replacement Fee
• Total Cost Worked Example
• How to Reduce Initial Costs
• FAQ

Overview: How Much Will You Pay?

As a rule of thumb, budget for 4 to 6 months’ rent as your total initial payment. On a ¥120,000/month apartment, that means ¥480,000–¥720,000 due before move-in. This surprises many foreigners accustomed to paying just a deposit and first month. Here is where that money goes.

Shikikin (敷金) — Security Deposit

Shikikin is a refundable security deposit held by the landlord for the duration of your tenancy. It covers any damage beyond normal wear and tear when you move out.

• Typical amount: 1–2 months’ rent
• Refund: Partial or full refund at move-out, minus deductions for any damage you caused
• Legal basis: Governed by Japan’s Civil Code and Ministry of Land guidelines — landlords cannot charge for normal deterioration (通常損耗)

Tip: Take dated photos of every surface on move-in day. This protects you from unfair deductions when you leave. The landlord must provide an itemized list of any deductions from your shikikin.

Reikin (礼金) — Key Money

Reikin is a non-refundable “gift” payment to the landlord with no equivalent in most other countries. It originated as gratitude money in post-war Japan when housing was scarce. Today it is a pure revenue item for landlords and provides you nothing in return.

• Typical amount: 0–2 months’ rent (1 month is most common in Tokyo)
• Refundable: No — this money is gone permanently
• Negotiable: Yes — reikin-free (礼金ゼロ) apartments exist and are increasingly common

Author’s note: When helping foreign clients, I always prioritize finding reikin-zero listings where possible. On a ¥120,000/month apartment, skipping reikin saves ¥120,000–¥240,000 immediately. Always ask whether the landlord will waive or reduce reikin, particularly in slower rental seasons (October–January).

Agency Fee (仲介手数料)

The real estate agency that helps you find and secure the apartment charges a brokerage fee for their service.

• Legal maximum: 1 month’s rent plus tax (under Japan’s Real Estate Brokerage Act)
• Typical charge: 1 month’s rent + 10% consumption tax
• Who pays: Legally, the fee can be split between tenant and landlord, but in practice the tenant pays the full amount in most cases
• Zero-fee options: Some platforms (SUUMO, Chintai) list apartments with discounted or zero agency fees, particularly for properties managed directly by large property management companies

First Month’s Rent and Pro-Rata

You pay the first full month’s rent upfront, plus a pro-rated amount for any days in the current month before your contract officially starts.

• First month: Full month’s rent paid in advance
• Pro-rata (日割り家賃): If you move in on the 15th, you pay 15–16 days of rent for that partial month, in addition to the first full month
• Timing tip: Moving in on the 1st of the month avoids the double-payment of both pro-rata and first month

Guarantor Insurance Fee (保証会社費用)

Almost all landlords in Tokyo now require tenants to use a licensed guarantor company (保証会社) rather than a personal guarantor. This company guarantees your rent payments to the landlord if you default.

• Initial fee: Typically 50–100% of one month’s rent
• Annual renewal: ¥10,000–¥20,000 per year ongoing
• Mandatory: Usually non-negotiable — the landlord specifies which company to use
• Important for foreigners: Some guarantor companies will not accept foreign nationals, particularly those without permanent residency. A good agent will only show you properties where the guarantor company accepts foreign tenants

Fire Insurance (火災保険)

Tenants in Japan are required to carry renters’ fire insurance (火災保険) as a lease condition. This covers fire damage and often includes liability coverage for damage to neighboring units.

• Cost: Approximately ¥15,000–¥20,000 for a 2-year policy
• Agent-recommended policies: Agents often specify a particular insurer, but you are legally allowed to choose your own comparable policy
• Tip: Choosing your own insurer can save ¥5,000–¥10,000 versus the agent’s default option

Lock Replacement Fee (鍵交換費用)

Many landlords charge tenants for replacing the apartment locks at move-in as a security measure.

• Cost: Approximately ¥15,000–¥30,000
• Negotiability: This is one of the more negotiable fees — some agents will waive it, particularly if you negotiate during a slow rental period

Total Cost: Worked Example

Here is a realistic cost breakdown for a ¥120,000/month 1LDK apartment in a Tokyo neighborhood like Toyosu, Koto-ku:

Item	Amount	Notes
First month’s rent	¥120,000	Paid upfront
Shikikin (deposit)	¥240,000	2 months — refundable
Reikin (key money)	¥120,000	1 month — non-refundable
Agency fee	¥132,000	1 month + 10% tax
Guarantor insurance	¥60,000	50% of 1 month’s rent
Fire insurance	¥18,000	2-year policy
Lock replacement	¥20,000	Varies
Total	¥710,000	Approx. 5.9 months’ rent

This is a typical scenario. With negotiation — reikin waived, lower guarantor fee, own fire insurance — the same apartment could be secured for closer to ¥550,000–¥580,000 upfront.

How to Reduce Initial Costs as a Foreigner

• Search for reikin-zero listings — These are widely available and immediately save 1–2 months’ rent
• Move in off-peak season — October through January is slower; landlords are more open to waiving fees like reikin and lock replacement
• Use an agent with foreign tenant experience — They know which landlords and guarantor companies will accept non-Japanese tenants and may have relationships that help with fee negotiation
• Choose your own fire insurer — You are entitled to, and can save ¥5,000–¥10,000
• Consider share houses for first 3–6 months — If you need time to find the right apartment, a share house has much lower initial costs (typically just a deposit of ¥50,000–¥100,000) while you search
• Use platforms with reduced agency fees — Some online platforms offer zero or 50% agency fee properties

Frequently Asked Questions

Why do I have to pay key money in Japan?

Reikin (key money) is a historical practice dating to the post-war housing shortage when demand far outstripped supply. Tenants paid landlords as a gesture of gratitude for being selected. Today it persists as a custom with no practical justification — it is simply extra income for the landlord. The good news is that reikin-free apartments are increasingly common in Tokyo, and you should always ask whether it can be waived.

Can foreigners get their security deposit back?

Yes. Japan’s Civil Code and Ministry of Land guidelines clearly state that tenants are not responsible for normal wear and tear (通常損耗) — fading wallpaper, minor scuffs from normal use, and similar deterioration. The landlord can only deduct for damage you caused. Document the apartment thoroughly at move-in with photos, and request an itemized deduction statement at move-out. Many foreigner-friendly landlords handle this fairly, but having documentation protects you.

Do I need a Japanese guarantor?

Not in most cases. The vast majority of Tokyo landlords now use guarantor companies (保証会社) rather than requiring a personal Japanese guarantor. You pay the guarantor company a fee (typically 50–100% of one month’s rent upfront), and they guarantee your rent to the landlord. Some guarantor companies do not accept foreign nationals without permanent residency, so working with an experienced agent who knows which companies are foreigner-friendly is important. For a deeper dive on this topic, see our complete guide to renting in Japan as a foreigner.

When do I pay all these fees?

All initial fees are typically due at contract signing, which usually occurs 1–2 weeks before your move-in date. You will receive a breakdown document (重要事項説明書) from the agent before signing that itemizes every charge. Review this carefully and ask questions about any items you do not understand — as a licensed agent, I always encourage clients to take their time with this document.

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This article was written by a licensed real estate agent (宅建士) based in Tokyo. Fee structures are accurate as of 2026 and reflect typical market practice in the Tokyo metropolitan area. Individual properties vary — always review your specific contract documentation carefully. For personalized guidance, see our complete guide to renting in Japan as a foreigner.