When renting a property in Japan, you’ll need to pay not only monthly rent but also a lump-sum payment of "initial costs" at the time of signing the lease. These initial costs typically include expenses like security deposit, non-refundable move in cost, agent fees, fire insurance, and more.
The total amount can vary significantly depending on the property, location, and terms of the contract. That’s why it’s important to understand the breakdown of these costs in advance, so you can prepare your budget accordingly and avoid unexpected expenses.
In this article, we’ll explain the details of initial rental costs and share tips on how to reduce them. If you’re planning to rent a property soon, be sure to read on.
What Are Initial Rental Costs？
Initial rental costs refer to the one-time, up-front expenses (excluding monthly rent) required when signing a lease.
Common components of initial rental costs include:
- Security Deposit (敷金): A refundable deposit held for repairs and restoration after move-out
- Reikin- non-refundable move in cost (礼金): A non-refundable gift payment made to the landlord as a gesture of appreciation
- Agent/Brokerage Fee (仲介手数料): Paid to the real estate agent for facilitating the rental agreement
- Fire Insurance Fee (火災保険料): Insurance covering damage from fire or other accidents during your stay
- Guarantor Company Fee (保証料): If a guarantor company is used, this fee is required
- Key Replacement Fee (鍵交換費): Charged to replace the locks as a security measure
- Cleaning/Disinfection Fee (クリーニング代・消毒費): Cost for cleaning the property before or after move-in
In general, the total initial cost is estimated at 4.5 to 5 months' worth of rent.
For example, if your monthly rent is ¥70,000, the initial cost would typically range from ¥300,000 to ¥350,000.
Also, keep in mind that market averages can vary by region and property, so it's crucial to confirm these details before signing a lease.
Breakdown and Average Costs of Initial Rental Fees
Security Deposit and Reikin (non-refundable move in fee)
What is a Security Deposit？
A security deposit is money paid upfront to cover potential costs such as unpaid rent or damage to the property. The typical amount is about one month’s rent. When moving out, the remaining balance (after deducting cleaning or repair costs) is refunded.
Note: More properties today are listed as “no security deposit”. In such cases, you may be charged separately for cleaning or repair costs upon move-out, so be careful.
What is Reikin (Non-refundable Move in cost) ？
Reikin (non-refundable move in cost) is a non-refundable gift payment to the landlord. The standard amount is also about one month’s rent, but recently, more properties offer no reikin options.
While zero-deposit/ zero reikin properties reduce upfront costs, they may charge higher rent, renewal fees, or move-out expenses, so always check the contract carefully.
Agency Fee and Guarantor Fee
What is an Agency Fee (仲介手数料)？
The agency fee is paid to the real estate agent for introducing the property and processing the lease.
- Typical cost: 0.5 to 1 month’s rent + tax
- Legal maximum: 1 month’s rent (excluding tax)
Some real estate agencies offer no agency fee properties, so it’s worth checking if you want to reduce costs.
What is a Guarantor Fee (保証料)？
A guarantor fee is required when using a rent guarantor company, which is often mandatory if you don’t have a co-signer.
- Typical cost: around 0.5 month’s rent
- Additional charges may apply upon contract renewal
- Fees and conditions vary by guarantor company, so be sure to review the details before signing
Prepaid Rent and Prorated Rent
What is Prepaid Rent (前家賃)？
Prepaid rent refers to paying the next month’s rent in advance when signing the contract.
For example, if you move in on March 1, you may be required to pay both March and April rent up front.
What is Prorated Rent (日割り家賃)？
If you move in mid-month, the rent for that month is calculated on a per-day basis. :
- For example
If monthly rent is ¥70,000 and you move in on the 15th- ¥70,000 ÷ 30 days × 15 days = approx. ¥35,000
This ensures you only pay for the portion of the month you actually live in the apartment.
Other Initial Costs
Fire Insurance Fee
When renting a property, fire insurance is typically required to cover accidents such as fire or water damage.
- Standard cost: ¥10,000 to ¥20,000 for a 2-year policy
- You may be allowed to choose your own insurance provider, though some real estate agencies will specify one
Key Replacement Fee
The key replacement fee is charged to ensure that previous tenants can no longer access the unit.
- Typical cost: ¥15,000 to ¥20,000
- While technically optional, it’s generally expected for security reasons
Cleaning and Disinfection Fee
Depending on the property, you may be required to pay for cleaning or disinfection services either before moving in or after moving out.
- Typical cost: ¥10,000 to ¥30,000
- Usually charged after moving out, but sometimes required upfront at contract signing
Check whether cleaning fees are clearly stated in the lease. Knowing this can help you avoid unnecessary charges.
In the next section, we’ll explain practical ways to reduce initial rental costs. If you're planning to rent a property, don’t miss it!
Total Estimated Initial Costs and How to Calculate Them
When signing a rental contract, the total initial costs are generally estimated at 4.5 to 5 months' worth of rent. This includes expenses such as security deposit, reikin, prepaid rent, agency fee, guarantor fee, and more.
Below is an example of the initial costs for a property with ¥70,000 monthly rent.
Example Calculation (Monthly Rent: ¥70,000)
| 項目 | 金額（目安） |
|---|---|
| Security Deposit (1 month) | ¥70,000 |
| Reikin (1 month) | ¥70,000 |
| Prepaid Rent (1 month) | ¥70,000 |
| Agency Fee (1 month) | ¥70,000 |
| Guarantor Fee (0.5 month) | ¥35,000 |
| Fire Insurance | ¥15,000 |
| Key Replacement Fee | ¥15,000 |
| Total | Approx. ¥350,000 |
As you can see, for a rental property with ¥70,000 monthly rent, you would typically need around ¥350,000 upfront to cover the initial costs. However, this amount can be significantly reduced by choosing a property with no deposit or no reikin, or by working with a real estate agency that offers no agency fee.
How to Reduce Initial Rental Costs
Initial rental costs can be significantly reduced with a few smart strategies. Below are practical ways to ease your financial burden when signing a rental contract.
1. Look for Zero-Deposit, Zero-Reikin
Many properties now offer zero deposit and zero reikin (“zero-zero” properties), allowing you to cut down on large upfront payments. These can be especially helpful if you have limited cash available.
However, even if there’s no deposit, you may still be charged for cleaning or repairs when moving out. Be sure to check the contract carefully for clauses like:
- Full restoration fee charged upon move-out”
- Separate house cleaning fees
Example: Cost difference with zero-zero properties
| Item | Standard Property | Zero-Zero Property |
|---|---|---|
| Security Deposit (1 month) | ¥70,000 | ¥0 |
| Reikin (1 month) | ¥70,000 | ¥0 |
| Total | ¥140,000 | ¥0 |
2. Choose a Property with a Low or No Agency Fee
Real estate agencies charge varying brokerage fees, from free to one month’s rent. Choosing a property with no agency fee can save you a significant amount. Some agencies advertise “no agency fee” or “half-price agency fee”. But be cautious—some may charge a similar “contract fee” under a different name. Always confirm the full breakdown.
Example: Savings from reduced agency fees
| Standard Agency Fee (1 month) | Half-price | Free |
|---|---|---|
| ¥70,000 | ¥35,000 | ¥0 |
3. Use Free-Rent Properties
Free-rent properties offer 1–2 months of free rent as a move-in bonus. This helps lower not only prepaid rent at signing, but also living expenses after moving in.
Most free-rent properties include a penalty clause if you leave early, so make sure to confirm the minimum stay requirement.
Example: One-month free rent
| Item | Standard Property | Free-Rent Property |
|---|---|---|
| Prepaid Rent | ¥70,000 | ¥0 |
| Savings | ¥0 | ¥70,000 |
4. Negotiate with the Landlord
If a property has been vacant for a while, the landlord may agree to lower the rent or waive reikin upon request. This is especially true for less popular properties or older buildings.
A good strategy is to negotiate after you’ve submitted an application, when the landlord knows you’re serious. Try saying, “I'm planning to stay long-term—would you consider lowering the rent?”
Example: Cost reduction through negotiation
| Item | Before Negotiation | After Negotiation |
|---|---|---|
| Rent | ¥70,000 | ¥68,000 |
| reikin | ¥70,000 | ¥50,000 |
| Savings | ¥0 | ¥22,000 |
5. Save on Moving Costs
In addition to rental fees, moving costs can be reduced with smart timing and planning. Avoid March–April (peak season) when prices are highest. Moving during the off-season can cut your expenses in half.
Always get quotes from multiple moving companies. Even with the same distance and volume, prices can vary widely.
If you don’t have much stuff, renting a van and moving yourself with the help of friends can save a lot.
Example: Moving cost comparison
| Season / Method | Estimated Cost |
|---|---|
| Peak Season (Mar–Apr) | ¥80,000–¥100,000 |
| Off-Season (May–Aug) | ¥40,000–¥60,000 |
| DIY (self-move) | Under ¥20,000 |
6. Use Credit Cards or Installments for Initial Payments
Some real estate agencies allow credit card payments for initial costs, eliminating the need to prepare a large lump sum of cash. This is useful if you want to spread out payments or earn credit card points.
Benefits of Credit Card Payments:
- Easier to manage cash flow by delaying payment until the next billing cycle
- You can earn points or cashback on large payments
- You can sign a contract even without having full cash on hand
Avoid using revolving credit or long-term installment plans, as these come with high interest rates and increase your total repayment amount.
Summary
- Initial rental costs typically amount to 4.5 to 5 months' worth of rent
- Key expenses include security deposit, reikin, agency fee, prepaid rent, and guarantor fee
- You can significantly reduce costs by choosing zero-deposit/zero reikin properties or working with agencies that waive brokerage fees
- Further savings are possible through negotiation with landlords or by choosing free-rent properties
- Credit card or installment payments are also options, but be mindful of interest and fees
Initial rental costs can be a major financial burden, but with smart property selection and negotiation, you can keep expenses under control.
Be sure to compare and consider all options carefully before signing—and start your new life as affordably as possible!
