Key Money : A traditional fee in Japanese rental contracts

Reikin (礼金) is a one-time payment made to the landlord during the rental process in Japan. Typically, this fee amounts to about one month's rent and is paid at the time of signing the lease. Reikin is intended as a token of gratitude or a symbol of a successful rental agreement. It is non-refundable and forms part of the initial rental costs.

History:

The practice of reikin became firmly established during Japan’s post-war economic boom. Its roots lie in traditional Japanese business customs where gifts or tokens of appreciation were common. Reikin served as a way to show respect and gratitude to the landlord. Historically, it was considered an essential expense to demonstrate the tenant's sincerity and commitment. However, as Japan’s rental market has evolved, there has been a rise in properties that do not require reikin, and the concept of "zero reikin" properties has become more prevalent in recent years.