Renting in Japan: reikin, deposit, the guarantor — and the route around it

The Japanese tenancy agreement has an entry threshold that surprises Dutch people: not the monthly rent, but what is settled before the keys are handed over. Count on four to six months' rent before you live anywhere — and one of those months you never see again.

Where that money goes

Reikin, the "key money" — usually one, sometimes two months' rent, a gift to the landlord from a time of housing shortage. Not recoverable; it's the price of the contract.

Shikikin, the deposit — one to two months, in principle returned when you leave, minus cleaning and repairs. Japanese handover standards are strict; don't count on the full amount.

The estate agent's commission — usually one month.

The guarantee company (hoshō-gaisha) — the Japanese system wants a guarantor who vouches for your rent, traditionally a Japanese family member. Newcomers don't have one, so the landlord requires a guarantee company: often fifty to a hundred percent of a month's rent at the start, plus an annual renewal. This is not a choice; without a guarantor or guarantee company there is no contract.

Add the first month's rent and the sum is complete. The amounts are market practice, not statutory rates — they differ per property and per region, and are higher in tight markets.

What renting costs, and why the average lies

The official housing statistics give a national average of around ¥ 60,000 a month — but that averages in old and tiny dwellings. In the Tokyo market a studio is more like ¥ 90,000-100,000 and a family home well over ¥ 200,000; regional cities such as Osaka, Fukuoka and Sapporo sit far below that. Two consolations: Japanese employers almost always reimburse your commute by public transport, so living further from work really is cheaper — and rent increases within a running contract are rare.

The route around it: UR

There is one landlord that scraps the whole advance-payment circus: UR, the semi-public Urban Renaissance Agency with hundreds of thousands of homes, well over half in greater Tokyo. No reikin, no commission, no renewal fees and — the most important thing for a newcomer — no guarantor. In return: an income requirement, waiting lists for the popular complexes, and buildings that are functional rather than charming. For the first years, while you get to know the system and have no Japanese credit history yet, UR is often the calmest start. Whoever rents privately: sign nothing without knowing what the handover will cost later, and ask the estate agent for the total of all entry costs in black and white.

In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Japan.