What Are Initial Costs? Breakdown of Fees Required for Renting in Japan
Renting in Japan – Initial Cost Guide for Foreigners
🏠 Introduction
When renting an apartment in Japan, one of the biggest surprises is the high initial costs. Besides monthly rent, there are various one-time fees such as deposits, key money, and agency fees. This guide breaks down the average costs and gives you clear explanations as a foreigner looking to rent in Japan.
💰 Breakdown of Initial Costs
| Item | Description |
|---|---|
Security Deposit | Usually equivalent to 1 month’s rent. It’s used for repairs or unpaid rent when you move out. Remaining money is refunded. |
Key Money | Around 1 month’s rent. A non-refundable gift to the landlord. |
Agency Fee | Paid to the real estate agent, usually 1 month’s rent + tax. |
Advance Rent | Prorated rent for the move-in month and next month's rent. |
Fire Insurance | About ¥15,000–20,000 for 2 years. Required by most landlords. |
Guarantor Company Fee | 50–100% of one month’s rent. |
Key Exchange Fee | About ¥10,000–30,000 to replace the locks. |
📊 Total Estimated Initial Cost
In major cities like Tokyo, the average initial cost is around 4.5 to 6 months of rent.
Example: Rent = ¥80,000/month
→ Total upfront cost = ¥360,000 – ¥480,000
⚠️ Key Considerations for Foreign Renters
A guarantor company will likely be required.
Some apartments (especially foreigner-friendly ones) offer no key money or no deposit.
Rental contracts are typically for 2 years, and may include a renewal fee (often 1 month’s rent).
📝 Summary
Renting in Japan comes with more upfront costs than many countries. By understanding how the system works and what fees to expect, you can prepare your budget and avoid surprises.
🧳 Ready to Start Your New Life in Japan?
Japan’s rental system can be confusing at first, but once you know the rules, it's manageable. We hope this guide helps make your apartment search easier!
🎯 This Guide is Ideal For:
Foreigners planning to move to Japan
Students, workers, or working holiday visa holders
Overseas investors and real estate professionals