What is Key Money in Japan? 💰

💡 What is Key Money?

Key money (礼金, reikin) is a non-refundable gratuity paid to the landlord when you move into a rental property in Japan. It’s essentially a gift — not a deposit — and you don’t get it back.

💴 Typical Amount

Usually 1–2 months of rent. For example, if your rent is ¥80,000 per month, key money could be ¥160,000 upfront.

📜 Why Does it Exist?

  • 🧹 Gratitude for accepting you as a tenant
  • 🏚️ Compensation for future vacancy risk
  • 📈 Tradition dating back to post-war housing shortages

❌ Can You Avoid It?

Yes! Many modern rental agencies (like Simple Tokyo Rent) offer no key money listings. These are especially common for:

  • New buildings
  • Corporate-managed units
  • Foreign-friendly landlords

🧮 What Other Fees Exist?

In addition to key money, you may see:

  • 敷金 (shikikin) = Refundable deposit
  • 仲介手数料 (chukai tesuryo) = Agent commission
  • 保険料 = Fire insurance
  • 保証会社利用料 = Guarantor company fee

🧭 Summary

Key money is part of Japan’s rental tradition, but it’s not mandatory. Let Simple Tokyo Rent help you avoid unnecessary costs and find a place you love ❤️