When renting a property, you may come across terms like "shikikin" (security deposit) and "reikin" (non-refundable move-in fee). However, many people wonder, "Do I have to pay these fees every month?" or "Can I get my money back?".

Shikikin and reikin are important initial costs required when signing a rental contract. Yet, entering into an agreement without fully understanding their meanings and how they work can lead to unexpected expenses when moving out. This is especially true for those renting their first apartment or planning to move. Having a clear understanding of shikikin and reikin is crucial for avoiding disputes and ensuring a smooth rental experience.

There are also rental properties that offer the attractive option of "no shikikin (security deposit) or reikin (non-refundable move-in fee)". However, while these deals may seem appealing, they often come with hidden factors that require careful consideration.

In this article, we’ll explain the meanings and differences between shikikin and reikin, important payment tips, and the pros and cons of renting a property with zero deposit and non-refundable move-in fee—all in an easy-to-understand way.

What are shikikin and reikin? Do I have to pay these fees every month?

When signing a rental agreement, shikikin (security deposit) and reikin (non-refundable move-in fee) are important initial costs you’ll need to pay. However, for first-time renters, understanding the differences between the two and how the payment process works can be confusing. In this section, we’ll break down the meanings, differences, and timing of payments for shikikin and reikin, helping you navigate your rental contract with confidence.

What is Shikikin(security deposit)?

"Shikikin (security deposit)" is a sum of money paid to the landlord as a safeguard against unpaid rent or damage to the rental property. When you move out, the deposit is used to cover costs for restoring the property to its original condition (such as repair expenses) and any outstanding rent. Any remaining balance is then refunded to the tenant.

For example, shikikin may be used in the following cases.

• Damage or stains on wallpaper or flooring caused by the tenant’s negligence
• Unpaid rent
• Cleaning fees (though some properties may charge this separately)

Not all of the deposit is deducted automatically. Normal wear and tear or deterioration from everyday use is not considered the tenant’s responsibility, so costs for these are generally not deducted from the deposit.

What Is Reikin (non-refundable move-in fee)?

Reikin (non-refundable move-in fee) is a payment made to the landlord as a gesture of appreciation. Unlike the shikikin (security deposit), this fee is non-refundable, even after moving out. The standard amount is typically one to two months’ rent, though an increasing number of properties now offer zero reikin options.

Reikin was historically paid when rental properties were scarce, serving as a token of gratitude to landlords. However, with a greater supply of rental units today, this tradition has diminished, and many landlords have chosen to waive reikin to attract more potential tenants.

Do You Pay Shikikin and Reikin Every Month?

The short answer is no. shikikin and reikin are one-time payments made at the time of signing the lease. They are not monthly fees like rent or management costs.

When Do You Pay Shikikin and Reikin?
Shikikin and Reikin are typically paid in full at the time of signing the lease. When renting a property, these costs are usually included as part of the initial expenses, along with the first month's rent, agency fees, and fire insurance premiums. Since the total can be substantial, it’s important to check the estimated costs in advance.

Summary of Shikikin and Reikin

items	Shikikin	Reikin
Purpose	Deposited as collateral for unpaid rent or repair costs	Paid as a token of appreciation to the landlord
Refundability	Deducting restoration costs, the remaining balance will be refunded.	Not refundable
Market Rate	1 to 2 months' rent	1 to 2 months' rent
Payment Timing	at the time of signing the lease	at the time of signing the lease

By fully understanding the differences and structure of shikikin and reikin, you can avoid unnecessary expenses and potential issues.　In particular, the condition of the property at the time of move-out significantly affects the refund of the shikikin, so be mindful of how you use the room during your stay.

In the next section, we’ll explore the typical costs of shikikin and reikin and how they vary by region.

Average Costs and Regional Differences of Shikikin and Reikein

The amount of shikikin and reikin varies depending on factors such as the property's location, contract terms, and property type. In this section, we’ll take a closer look at the general price ranges and regional differences.

Typical Cost of Shikikin and Reikin

The cost of shikikin and reikin generally amounts to one to two months’ rent. For example, if the monthly rent is ¥100,000, it’s common to pay ¥100,000 each for shikikin and reikin, totaling ¥200,000.

• Shikikin: 1–2 months’ rent (Partially refundable; the remaining balance is returned after deducting costs for repairs and cleaning upon move-out.)
• Reikin: 1–2 months’ rent (Non-refundable)

However, the amount can vary depending on demand, local market practices, and location. In urban areas, properties often require both shikikin and reikin, while in rural areas, it’s increasingly common to find properties with no reikin requirement.

Regional Differences

The customs and practices surrounding shikikin and reikin can vary significantly depending on the region. Notably, there are distinct differences between the Kanto and Kansai regions of Japan.

1. Kanto Region
   • Average Rates: Typically, the shikikin is equivalent to 1 to 2 months' rent, and the reikin is also 1 to 2 months' rent.
   • Key Points: Many properties in the Kanto region have both shikikin and reikin firmly established.
   • Reason: In high-demand urban areas like Tokyo, landlords can easily find tenants even with these upfront costs, reducing the risk of vacant properties.
2. Kansai Region
   • Shikikin (Security Deposit): Often referred to as hoshōkin (guarantee money) instead of shikikin.
   • Shikibiki: A unique practice in Kansai where a portion of the hoshōkin is non-refundable and automatically deducted when tenants move out.
   • Reikin: Generally lower than in Kanto and, in some cases, not required at all.
   • Key Points: Due to the unique hoshōkin and shikibiki systems, it’s crucial to carefully review the contract terms before signing.
3. Regional Cities and Suburban Areas
   • Average Shikikin and Reikin: Typically less than one month’s rent, with many properties offering no reikin.
   • Key Points: Regional cities and suburban areas are experiencing declining populations and higher vacancy risks, resulting in an increase in properties with lower initial costs. "Zero-zero properties"—those requiring no shikikin and reikin—are commonly available.

The Emergence of Zero-Shikikin and Zero-Reikin

In recent years, more properties have adopted a "zero-zero" policy, requiring no shikikin or reikin. These properties are particularly prevalent in regional and suburban areas as a measure to combat high vacancy rates. Even in urban areas, the number of zero-zero properties is increasing in highly competitive rental markets.

• Advantages: Significantly reduces initial costs, easing the financial burden of moving.
• Disadvantages: Higher move-out repair costs or above-market rent to offset no upfront fees.

While zero-zero properties seem appealing, be sure to carefully review the contract to avoid unexpected expenses when moving out.

Tips for Choosing the Right Property

The customs and amounts of shikikin and reikin vary by region, so it’s important to understand the local market rates before moving. With the widespread use of the internet, you can easily research the cost differences by area. If you have any uncertainties, consulting a real estate company is key. Be sure to check the breakdown of initial costs and understand the expenses you may incur when moving out to avoid unexpected issues. By understanding the average amounts and regional differences of shikikin and reikin, you can make smoother property selections and better prepare your budget.

Next, let’s take a closer look at the advantages and disadvantages of zero-shikikin and zero-reikin properties.

Benefits and Considerations of Zero-Shikikin and Zero-Reikin Properties

Recently, an increasing number of rental properties with no shikikin or reikin —known as "zero-zero properties"—have become available. These options are especially attractive for those looking to reduce initial costs. However, there are important points to be aware of. Below is a detailed explanation of the advantages and disadvantages of zero-zero properties.

Benefits of Zero-Shikikin and Zero-Reikin Properties

1. Significantly Lower Initial Costs
   The shikikin and reikin typically cost one to two months' rent each. For example, if the monthly rent is ¥100,000, you may need to pay over ¥200,000 upfront for these fees alone. However, with a zero-shikikin, zero-reikin (known as a zero-zero property), these costs are eliminated, significantly reducing the financial burden when moving.
   Example:
   • Property with Shikikin & Reikin:
     Initial cost = ¥100,000 (rent) × 2 (shikikin + reikin) = ¥200,000
   • Zero-Zero Property: Initial cost = ¥0 (Other fees like the agency fee and first month's rent still apply)
2. Quick and Easy Move-In
   With low initial costs, planning a move becomes much easier—even if you have limited savings. This is particularly helpful in situations requiring urgent relocations, such as job transfers or unexpected moves. Zero-zero properties facilitate a smooth and speedy transition, allowing you to move without the financial stress of high upfront fees.
3. Ideal for Short-Term Stays
   If you plan to live in a property for a limited time—such as for a temporary job transfer or short-term studies—zero-zero properties offer significant advantages. With reikin required, you avoid non-refundable costs, making it a cost-effective choice for short-term rentals.

Important Considerations for Zero-Shikikin and Zero-Reikin Properties

While zero-zero properties help reduce initial costs, there are several key points to consider before signing the lease.

• High Restoration Costs at Move-Out
  Normally, a shikikin covers repairs for restoring the property to its original condition. However, with no shikikin, you may face a lump-sum bill at move-out for damages.
  Example:
  • Full wallpaper replacement (1-room apartment): ¥30,000–¥50,000
  • Flooring repairs: ¥30,000–¥100,000
    
    Review the contract carefully, as details about restoration costs are clearly stated.
• Early Termination Penalties
  Some properties impose penalties for breaking the lease early to compensate for the absence of shikikin and reikin. If you plan to stay short-term, be mindful of these penalties to avoid unexpected expenses.
  Example：
  • Moving out within 1 year: 2 months' rent
  • Moving out between 1–2 years: 1 month's rent
• Higher Monthly Rent
  To offset lower upfront costs, some landlords increase monthly rent. Over time, this can lead to higher total expenses compared to properties requiring deposits.
  Example：
  • Zero-zero property: ¥100,000/monthWith deposit & key money: ¥90,000/month
  Even a ¥10,000 monthly difference can add up significantly over a few years.
• Possible Poor Property Conditions
  Some zero-zero properties may have older equipment or visible wear and tear from previous tenants. Always visit the property before signing to check room conditions, appliances, and cleanliness.
• Additional Costs at Contract Signing
  Even without a shikikin or reikin, you may still need to cover cleaning fees, key replacement charges and guarantor company fees. Check the contract and important explanation documents thoroughly to understand the total cost upfront.

Tips for Choosing Zero-Zero Properties

• Confirm Move-Out Cost Responsibilities: Check the specific restoration costs you may be charged upon leaving.
• Check Early Termination Penalties: Verify the contract period and conditions for early termination.
• Inspect the Property in Person: Check for scratches, stains, or appliance malfunctions during a viewing.
• Calculate the Total Cost of Living: Compare total rent costs if you plan to stay long-term.

Zero-zero properties offer significant initial savings, making them appealing—especially for those on a budget. However, understanding the contract conditions and potential move-out expenses is crucial. Be thorough in your checks and calculations to ensure you find the best home for your needs.

Common Issues and Solutions Related to Shikikin and Reikin

Shikikin (security deposit) and Reikin (non-refundable move-in fee) are important costs when signing a rental contract, but misunderstandings or disputes can arise—especially during move-out or due to differing interpretations of the contract. Here are some common issues and practical solutions to avoid trouble.

Common Trouble Cases

1. Shikikin Not Refunded
   The shikikin is typically returned after deducting move-out restoration costs and any unpaid rent. However, there are cases where tenants receive no refund due to unexpectedly high charges.
   Example：
   • Charged for normal wear and tear: Costs for faded wallpaper or minor dents on the floor due to regular use.
   • Unlisted cleaning fees deducted: Cleaning costs not mentioned in the contract are subtracted from the deposit.
2. Excessive Move-Out Restoration Costs
   Restoration refers to returning the unit to its original state. While landlords can charge for tenant-caused damage, they cannot bill for ordinary aging or regular use deterioration.
   Example：
   • Floor discoloration from long-term residence charged as repair costs.
   • Overcharges for pet or smoking-related stains and odors beyond reasonable repair expenses.
3. Sudden Cost Demands Citing Special Clause
   Some leases include special terms requiring payment for cleaning or air conditioner maintenance at move-out. Issues arise when landlords claim fees for services not clearly outlined in the contract.
   Example：
   • Charged several tens of thousands of yen for "cleaning" without a breakdown of the expenses.
   • Air conditioner cleaning fees demanded at prices above market rates.

Measures to Prevent Troubles

1. Carefully Review the Lease Agreement
   Details regarding shikikin, reikin, and move-out costs are often specified in the lease agreement. Pay close attention to sections like “Special Clauses” and “Restoration Costs.” If you find unclear terms, consult with the real estate agency before signing.
   Key Points to Check:
   • Shikikin settlement methods (conditions and refund details)
   • Responsibility and cost of cleaning fees
   • Scope of restoration obligations (Is natural wear and tear excluded?)
   • Special clauses (Are any additional charges clearly stated?)
2. Document the Room Condition at Move-In
   Take clear photos or videos of the room’s condition upon moving in. This prevents unfair charges for pre-existing damage or stains at move-out.
   What to Photograph:
   • Scratches or stains on walls, floor conditions (tatami), worn-out appliances (AC, kitchen, bathroom fixtures), and door and window damage or gaps
   Include dates on photos and share them with the landlord or management company for added protection.
3. Always Attend the Move-Out Inspection
   During move-out, inspect the property with the landlord or management company representative. Discuss any repair needs and associated costs directly. Don’t hesitate to question charges that seem unreasonable.
   Checklist for the Inspection:
   • Areas requiring repairs and the reasons
   • Detailed breakdown of the billed amount
   • Distinction between wear and tear vs. damage
4. Verify the Breakdown of Move-Out Costs
   If billed for repairs or cleaning, request a detailed invoice or estimate. If costs seem excessive or lack clear justification, negotiate until you’re satisfied.
   Example Steps:
   • Compare repair costs with estimates from other contractors.
   • Refuse to pay for damages caused by normal aging (natural wear and tear).
5. Use National Consumer Affairs Center of Japan or consumer Support Services
   If disputes remain unresolved or you receive unfair charges, seek help from public consumer services. Professionals can offer guidance and solutions.
   Helpful Contacts in Japan:
   • National Consumer Affairs Center: Dial 188 (Consumer Hotline)
   • Houterasu: Free legal consultations

Preventing Troubles Through Advance Checks

Disputes regarding shikikin and reikin often arise from insufficient contract review or misunderstandings between tenants and landlords.

• Thoroughly Review the Lease Agreement and Special Clauses
• Document the Room Condition at Move-In
• Attending the Move-Out Inspection

By implementing these measures early, you can proactively prevent unfair charges and disputes. If issues arise, stay calm and seek solutions through consumer support services or consultation centers.

Switch Your Monthly Rent Payments to Credit Card with RentEase

When renting a property, bank transfers or direct debits are the most common payment methods. There are many rental properties that still do not support credit card payments. By using RentEase, you can switch your monthly rent payments to credit card and enjoy numerous benefits.

What is RentEase?

RentEase is a convenient service that allows you to pay your rent by credit card even for properties that don’t directly support credit card payments. It doesn't cover initial costs (RentEase focuses on monthly rent payments); however, it's applicable to both current rental contracts and new leases.

Benefits of Using RentEase

1. Earn Points and Miles
   By paying rent through RentEase with a credit card, you can accumulate points or miles based on your card usage. Since monthly rent payments typically range from tens to hundreds of thousands of yen, this is a great way to efficiently collect points.
   • Example: Paying ¥100,000 in monthly rent can earn you points worth ¥1,200,000 annually.
2. Flexible Payment Timing
   Credit card payments operate on a post-payment system. This means you can delay your rent payment until the card's billing date, even if you don’t have enough cash on the rent due date. It provides peace of mind, especially during months with unexpected expenses.
3. Save Time on Administrative Procedures
   If you currently pay rent via bank transfer, you need to process payments manually every month. With RentEase, payments are automated through your credit card, eliminating the hassle and reducing the risk of forgetting to pay.
4. Prevent Missed or Late Payments
   Switching to credit card payments ensures your monthly rent is automatically paid. This reduces concerns about missed payments or late fees due to insufficient account balance, safeguarding your credit history.

Recommended for:

• Those who find bank transfer procedures tedious and want an easier way to pay rent
• People who want to efficiently convert their monthly rent into points or miles
• Someone who is looking to reduce cash outflow and delay payments
• Anyone seeking to simplify household budgeting

Important Notes

RentEase only supports monthly rent payments and does not cover initial costs such as shikikin, reikin, or agency fees. If you need to pay these initial expenses, be aware that additional action may be required.

Make Rent Payments More Rewarding and Convenient with RentEase

With RentEase, you can easily switch to credit card payments for your monthly rent, even if your property previously didn’t support it. The process is simple, and you can enjoy numerous benefits such as point rewards and automated payments. RentEase is the perfect solution for modern lifestyles—offering both convenience and savings.

Take advantage of RentEase and explore a new, smarter way to pay your rent!

Summary

When signing a rental agreement, it’s important to understand the roles and meanings of shikikin and reikin to avoid unexpected issues.

• Shikikin is a deposit held to cover unpaid rent or repair costs when you move out. Any remaining balance is refunded upon moving out.
• Reikin is a non-refundable payment made to the landlord as a token of appreciation.
• The costs and systems for shikikin and reikin vary depending on the region. While zero-deposit properties offer the benefit of lower upfront costs, you need to be mindful of potential move-out expenses and contract details.

To avoid disputes related to shikikin and reikin, it’s essential to Review your lease agreement carefully and inspect the property before moving in. Additionally, document the condition of the property upon moving in to prevent unjust claims for restoration costs when you move out.

By using RentEase, you can switch your monthly rent payments to credit card payments, earn points efficiently and save on everyday expenses. If you’re looking to make your rent payments more rewarding and hassle-free, RentEase is worth considering.

Start your new life with confidence by understanding your initial costs, and planning a sustainable payment schedule. Make your monthly rent payments smarter and enjoy a more comfortable rental experience with RentEase!