Renting in Japan: reikin, deposit, the guarantor — and the route around it
A Japanese tenancy agreement asks for four to seven months' rent up front: key money you never see again, deposit, commission, insurance and a guarantee company. There is one semi-public landlord that scraps key money, commission and guarantor — and it's precisely for newcomers without a Japanese guarantor that it's interesting.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
Yes, you can rent in Japan as a newcomer, but count on a hefty entry cost.
Three things to know in advance:
- The Ministry of Land, Infrastructure, Transport and Tourism gives as a rule of thumb that you pay four to seven months' rent at signing: deposit, key money, commission, fire insurance, the first month's rent and service charges.
- One of those items you never see again.
- Without a guarantor or guarantee company there is no contract.
There is one landlord that scraps much of this, and it is precisely interesting for newcomers.
What do you pay up front, and what do you get back?
| Item | What it is | Guide amount according to the ministry |
|---|---|---|
| Reikin (key money) | a payment to the landlord, mainly in the Kantō region | usually 1 or 2 months' rent, not returned |
| Shikikin (deposit) | security for arrears and repairs | about 2 months' rent, returned after deduction of costs |
| Commission | fee for the agent | at most 1 month's rent |
| Guarantee company | pays if you don't pay the rent | often 35 to 50% of one month's rent for 2 years |
| Fire insurance | customary at signing, covers fire and water damage you cause | per policy |
| First month's rent and service charges | in Japan rent is paid a month in advance | 1 month |
| Renewal fee | on renewal of the contract, usually after 2 years | if the contract provides for it |
Key money is not customary everywhere. The ministry calls it typical of the region around Tokyo, and writes that more and more homes come without it. In the Tokai, Kansai and Kyushu regions you more often come across shikibiki: a portion of the deposit fixed in advance that you do not get back when you leave. Ask the agent for all amounts together on paper, before you sign.
Why do you need a guarantor?
The Japanese system wants someone who vouches for unpaid rent or repair costs after you leave. That is a guarantor with an income above a certain level. The guarantor supplies proof of income and a seal registration certificate with the application (the official registration of their personal seal, the hanko).
Newcomers usually don't have such a guarantor, so the landlord asks for a guarantee company. Note what that is: not insurance. If the guarantee company pays your rent, it then sends you the bill.
With the application the agent usually asks for:
- your passport;
- your residence card;
- proof of income;
- an employer's certificate.
Then the agent and landlord screen you. Before you sign, the agent must explain the important points of the contract to you. Get help with that conversation if your Japanese is not good enough.
What in the contract should you check?
There are two kinds of tenancy:
- The regular rental agreement is the standard. The landlord may not refuse renewal without good reason, and it continues automatically.
- The fixed-term lease ends on its end date. A new contract needs the consent of both sides.
Also ask about the renewal fee, whether pets and additional occupants are allowed, and what the restoration conditions are.
The handover decides how much deposit you see again. When you leave, you pay for repairing what you damaged or dirtied yourself, and that comes off your deposit; if it is more, you pay the difference. Walk through the home at the key handover, note damage and take dated photos. You give notice in writing, usually one to two months in advance.
What does renting in Japan cost per month?
The official housing survey of 2023 arrives at ¥ 59,656 a month nationally, 7.1% more than in 2018. That is a national average across all kinds of rental homes, from public housing to company housing.
| Type of rental home (national, 2023) | Average rent per month |
|---|---|
| Public housing from municipality or prefecture | ¥ 24,961 |
| UR and public housing corporations | ¥ 71,831 |
| Private, wooden construction | ¥ 54,409 |
| Private, other construction | ¥ 68,548 |
| Company housing | ¥ 37,993 |
Is UR the route around it?
The Urban Renaissance Agency (UR) lets some 700,000 homes across Japan, without key money, commission, renewal fee or guarantor. The deposit is two months' rent, and the contract renews itself automatically every year. Foreigners with a residence card can rent, provided they understand the contract. Against that stands an income requirement:
| Rent per month (household) | Required average monthly income |
|---|---|
| Under ¥ 82,500 | four times the rent |
| ¥ 82,500 to ¥ 200,000 | ¥ 330,000 |
| ¥ 200,000 or more | ¥ 400,000 |
For the first years, while you learn the system, UR is often the calmest start.
Public housing from the municipality or prefecture is for low incomes. Foreigners may face extra requirements there, such as a stay of more than one year. If you want to buy later, read buying a house in Japan.
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.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Statistics Bureau — Housing and Land Survey 2023 (rent figures) — stat.go.jp
- UR — the semi-public landlord without key money — ur-net.go.jp
- MLIT — Apartment Search Guidebook (entry costs, terms, notice, handover) — mlit.go.jp
- UR — the eligibility rules, with income per rent band and the requirements for foreigners — ur-net.go.jp
- ISA — Guidebook on Living and Working, chapter Housing (public housing, UR, private rental) — moj.go.jp
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