How Much Are Upfront Costs When Renting an Apartment in Japan?

How Much Are Upfront Costs When Renting an Apartment in Japan?

When renting an apartment in Japan, upfront costs can feel confusing — and sometimes overwhelming — especially if it’s your first time renting here.

In the general market, upfront costs are often explained as 4 to 6 months’ worth of rent, which typically includes a security deposit, key money, brokerage fees, and other mandatory charges.

However, this is not always necessary — and it’s important to know that you do have other options!

At our company, we specialise in helping clients find reasonably priced apartments with lower upfront costs, while still meeting landlord and management company requirements.

What Does “Low Upfront Cost” Actually Mean?

“Low upfront cost” does not mean zero cost.

Even with discounted or campaign apartments, tenants should realistically prepare for:

• The first month’s rent

• Unavoidable mandatory fees (insurance, guarantor company, etc.)

In practice, this usually means preparing around three times the monthly rent, including one full month of rent.

So if your rent is 100,000 yen, a realistic and healthy upfront budget would be around 300,000~400,000 yen, not 500,000–600,000 yen.

Monthly Rent (家賃 / Yachin)

Monthly rent is the cost of your apartment, and often includes Management fees

• When signing a lease, tenants generally pay:

• The first month’s rent (calculated based on your move-in date)

• The second month’s rent (one full month)

Key Money (礼金 / Reikin)

Key money is a non-refundable payment made to the landlord, typically one to two months’ rent.

That said:

• Many properties do not require key money

• After peak moving season (February–April), landlords often waive key money to fill vacancies

We actively prioritise properties without key money for clients seeking lower upfront costs.

Security Deposit (敷金 / Shikikin)

The security deposit is usually one to two months’ rent and is held by the landlord to cover:

• Cleaning fees

• Repair costs

After move-out, the remaining balance is returned after deductions.

Some apartments offer:

• Reduced deposits/0-deposit campaigns

Real Estate Brokerage Fee (仲介手数料 / Chūkai Tesūryō)

When renting through a real estate agency, brokerage fees are charged.

• The legal maximum is one month’s rent+10% tax

• Many properties offer discounted or reduced brokerage fees

We will explain brokerage fees in advance!

Guarantor Company Fee (保証会社費用)

In Japan, all tenants — Japanese or foreign — must use a guarantor company.

• Typical cost: 50%–100% of one month’s rent

• Approval by the guarantor company is required before signing

Fire Insurance (火災保険)

Fire insurance is mandatory and covers:

• Fire damage

• Water damage

• Accidental incidents

• Cost: around 20,000 yen for two years

• Renewed when the lease is renewed

Key Exchange Fee (鍵交換費用)

For security reasons, locks are replaced before a new tenant moves in.

• Cost: around 20,000~30,000 yen

• Paid once at the start of the lease

Our Approach: Honest Budgets, Realistic Expectations

Yes — high-initial-cost apartments exist.
But so do reasonable, well-located apartments with fair upfront costs.

If your monthly rent is around 100,000 yen, preparing about 300,000 yen total — including one month’s rent — is often enough when your search is done properly.

If you’re looking to keep upfront costs low without compromising quality, we’re here to help.