Initial Costs


A breakdown of initial costs to rent a property in Japan.

Upfront Rent:家賃 (Yachin)

Usually required to pay for a prorated rent of the first month and a full amount of next month when you sign the lease agreement.

Management Fee:
管理費/共益費 (Kanrihi/Kyoekihi)

A fee used to cover the cost of maintaining communal spaces. The amount is separate from the rent, but is paid monthly together with the rent.

Deposit:敷金 (Shikikin)

Security Deposit for Owner and the full amount shall be refunded when the lease was terminated. The amount may vary from 1 months’ the rent up to 3 or 4 months.

Key Money:礼金 (Reikin)

Traditional system often referred to as “Appreciation Fee / Gift Money” for Owner. Non-refundable and usually accounts to approximately 1 to 2 month’s rents.

Guarantor Company Fee:
保証委託料 (Hoshōitakuryo)

A one-off fee to use a guarantor company who acts in the same way as a personal guarantor, covering any losses incurred from late payment or sudden termination of the contract.

Housing Insurance Fee:
家財保険料 (Kazai hoken-ryo)

To use an insurance company to repair things in your home (windows, tile of a counter, etc.) It costs about 15,000 to 30,000 yen depending on the size / quality of properties.

Key Replacement Fee:
鍵交換費用 (Kagi koukanhiyō)

Required to pay to replace the key cylinder with a new one before a tenant moves in. The price is usually about 20,000 – 30,000 yen.

Agent Fee:
仲介手数料 (Chūkai-Tesuryō)

Paid by Tenant to the real estate agent who finally found the property you liked and finalise the contract. The amount is “1 month’s rent + tax” as defined by the real estate law.

Simulation Case



Individual Contract

Cost Estimation

Upfront Rent*1

[Prorated rent for the first month + Next month’s rent]

Lease start date is set on 25th, April, and days in April is 30 days. Therefore, the billable days for prorated rent for the first month is 6 days.

400,000 (rent) ÷ 30 days = 13,333 yen
13,333 yen × 6 days = 79,998 yen (propated amount)

79,998 + 400,000 = 479,998 yen

Deposit & Key Money*2

[Deposit = 1 month’s rent = 400,000 yen]

Normally standard property type for a local market (mainly designed for Japanese tenants) requires 1 to 2 months’ rent.

[Key money = 1 month’s rent = 400,000 yen]

Although this old system “Key Money” has been dying out, it still exists for many properties in a local market.

* Management fee is not included when deposit and key money is calculated.

Guarantor Company Fee*3

[xx% of a total amount of a monthly payment]

“A total amount of a monthly payment” includes a management fee, a car parking, a bicycle parking paid together with a rent for the first year.

Let’s say you need a car parking (50,000 yen/mo), the calculation would look as below.

400,000 (rent) + 10,000 (management fee) + 50,000 yen (car parking) = 460,000 yen (total monthly payment)

The percentage is set as 50. Therefore,

50% of 460,000 yen = 230,000 yen

* Its renewal fee is about 10,000 yen/year after 2nd year.

Upfront Rent*1 JPY 479,998
Management Fee JPY 10,000
Deposit*2 JPY 400,000
Key Money*2 JPY 400,000
Guarantor Company Fee*3 JPY 230,000
Housing Insurance Fee JPY 20,000
Key Replacement Fee JPY 25,000
Agent Fee JPY 400,000
Total Cost JPY 1,964,998



Corporate Contract

Cost Estimation

Upfront Rent*1

[Prorated rent for the first month + Next month’s rent]

Lease start date is set on 10th August, and days in August is 31 days. Therefore, the billable days for prorated rent for the first month is 22 days.

900,000 (rent) ÷ 31 days = 29,032 yen
29,032 yen × 22 days = 638,704 yen (propated amount)

638,704 + 900,000 = 1,538,704 yen

Deposit & Key Money*2

[Deposit = 2 months + 1 month of rent = 2,700,000 yen]

Luxury property type for an expats market (mainly designed for foreigner families and the lease signed by their companies/embassies) requires deposit of up to 3, 4 months’ rent. Also, some additional amount of the deposit is usually required in case of keeping pets (dogs or cats) in a property. Hence the + additional deposit of one month’s rent.

[Key money = 1 month’s rent = 900,000 yen]

* Deposit and Key Money may be covered by your company/embassy. However, most cases, the limits apply and it varies depending on your company/embassy policy.

Guarantor Company Fee*3

[xx% of a total amount of a monthly payment]

In case of a corporate contract, guarantor company is required only when the lease is signed by a large company.

Guarantor Company Fee = 0

Upfront Rent*1 JPY 1,538,704
Management Fee JPY 10,000
Deposit*2 JPY 2,700,000
Key Money*2 JPY 900,000
Guarantor Company Fee*3 0
Housing Insurance Fee JPY 20,000
Key Replacement Fee JPY 30,000
Agent Fee JPY 900,000
Total Cost JPY 6,098,704

* Agent fee may also be covered by your company/embassy.

Running Costs
During Tenancy Period

Utility Charges:
公共料金 (Kokyu-Ryoukin)

In Japan, a monthly rent does not include utility charges, such as Water, Gas, Electricity, Internet Access, etc. and those need to be arranged by Tenant.

*HRT is helping you for such arrangements to start / stop the utilities.

In case of a single resident, those cost about 5,000 yen/month for each Water, Gas, Electricity, and Internet Access. It depends on your life style how often you cook, have a shower, turn on air-conditioner (heater & cooler), etc. in a month, but the total amount is around 20,000 yen/month for a single tenant and of course it should be higher in case of a couple / family tenant.

Renewal Fee for Guarantor Company:
保証委託更新料 (Hoshōitaku-koushinryo)

In case Tenant joined a guarantor company at the beginning of the lease, the renewal fee is required which usually costs about 10,000 yen/year after 2nd year or accounts for 1- 2% of a monthly rent through the lease period.

*Each guarantor company has a different system for the initial cost and renewal cost, and HRT inform you about the details while you are viewing a property.

Renewal / Re-Contract Fee for the Lease Agreement:更新料

When Tenant extends the lease for a next lease period, 1 month of Renewal / Re-Contract Fee is required before renewing / resigning the lease agreement.

*Please refer to the glossary for the details about “Standard (Ordinary) Lease” and “Fixed Term Lease”.

Renewal Fee for Housing Insurance:
家財保険更新料 (Kazai hoken koushinryo)

Housing insurance is always required during the lease period, and it needs to be renewed every 2 years.

Car / Motor Bike or Bicycle Parking:
駐車場 / 駐輪場(Chusyajo / Churinjyo)

When you are parking your Car / Motor Bike or Bicycle within a property, the parking cost is usually charged separately unless those spaces were already attached for free, like parking spaces at a free standing house.

Small Replacement Expense:
軽微な交換費用 (Keibi na Koukanhiyou)

While you are living in a property, you are responsible for changing / replacing worn out light bulbs, batteries, rubber seals, net screens, etc. at your cost.

Costs of Moving Out

Room Cleaning Fee:
清掃費用 (Seiso-hiyo)

This fee is always charged by Owner when the lease was ended, no matter how long you stayed or how clean you used the property. It usually costs 1,000~1,300 yen/m² + tax or so, as a fixed charge.

*Please do not hire a professional cleaner with your cost before moving out, because this room cleaning fee is required in any case.

Restoration Cost:
原状回復費用 (Genjo-kaifukuhiyo)

In case there were any broken appliances or major damages which cannot be removed by a general room cleaning, you shall pay for the special cleaning / repair costs to Owner.

The amount of such restoration costs is usually deducted from the deposit before returning to you.

*HRT is always with you when you first move into a property and check the actual conditions of the property together to keep the record. When you finally move out from the property, we are bringing the record for recognizing the damages were made during your stay or those had been already there from the beginning.

Deposit Refund:
敷金返還 (Shikikin Henkan )

The deposit will be returned to you when you move out and it takes about 1 month to transfer.

* Please kindly note the general room cleaning fee and restoration fee will be deducted from the deposit and you receive the remaining amount.

Penalty for Early Cancellation:
短期解約時違約金 (Tanki-kaiyakuji Iyakukin)

This is charged by Owner in case you terminated the lease within the first 12 months, or before the lease start date after signing the lease, etc. and it is usually for 1 month’s rent.

Tenants’ Guides