Guide for Cost & budget

Guide for Cost & budget

Now you are trying to find a rental house/apartment and it’s time for budgeting. These below are the costs that you need to consider when you search for your new home. Every house/apartment has different owners so the amount and condition might change but these below are the basic.

 

  Advanced Payment for the Rent

In general, the rent is paid in advance. This payment is required already upon signing the contract. If your move-in date is somewhere in the middle of the month, you are required to pay the remaining days of the month and the following month’s rent together in advance.

  Common Service Fee

This charge is usually for the elevator maintenance/usage, cleaning of common area, and general building maintenance. This is not charged for a single rental house usually.

  Reikin (Key money) 

Reikin is what you pay to the owner when you sign the contract as. The amount is generally 1 or 2 months of the rent.  This money is not refundable. There are some houses that don’t require this too, but currently more than half of them will. The owner uses this usually for maintenance or cleaning however it all depends on the owner. * This is NOT “key exchange” money.

  Deposit

A deposit to the owner. The amount is generally 1 or 2 months of the rent. When you finish the contract and leave, the deposit will be returned to you after the house-cleaning (wallpaper replacement, bacteria elimination etc.) fee, any repair for damages that were caused by the tenant and overdue rent payments are deducted. House-cleaning is generally shouldered by the tenant so it’s rare that the whole amount of the deposit is returned to you. If you are careful of the following points you may have a higher chance to have less deduction on your deposit return: no smoking, no holes in the wall by nail/screw, be careful not to damage floor & wall, clean kitchen regularly.

 

* You could request us to introduce houses/apartments without reikin or deposit, however, please understand it will significantly limit the number of options that we can provide and its quality.  

 

  Fire Insurance

The amount is about JPY15,000 to 30,000. Generally, tenants must pay to join fire insurance in case of natural disasters and earthquake, not just for fires.

  Guarantor Company Fee / Rental Guarantee Company Fee

The fee depends on the guarantee company but ranges between 50% – 100% of the rent. It needs to be paid when you first sign your housing contract, and after that, you usually need to pay every 2 years for the renewal fee. The guarantor company ensures that rent is paid to the owner in the event that you are late for or do not pay your rent payment. The guarantor company will then bill you for the rent that they paid for you. The owner must receive the rent every month to manage their property well, so anyway please don’t miss the due of rent payment every month if the rent payment method is manual bank transfer each time.

  Key Exchange Fee

This fee is about JPY 15,000 on average and depends on the owner. However, to avoid trouble, such as the past tenant making a copy of the key, key exchange is often required of the new tenant.  But this depends on the owner.

  Real Estate Agent Fee

This fee is one month of the rent + tax. As per Japanese Law, the agent fee must be one month of the rent or less. Almost all agents charge their clients one month’s rent for this agent fee.

 

  Total Cost

Here is the breakdown of the first payment and the monthly payment if you are moving into an apartment for ¥50,000 a month.  This is to just give you an overall idea and just an example.  All the houses & cases are different because the owner and the building conditions are different.  Also remember, there are rental houses/apartments that don’t require some of the cost listed here like Key Exchange Fee or Reikin.

Monthly Payment
Rent ¥50,000
Common Service ¥3,000
First Payment
Reikin(key money) ¥53,000
Deposit ¥53,000
Fire Insurance ¥20,000
Guarantor Fee ¥25,000
Key Exchange Fee ¥15,000
Agent Fee ¥54,000
First Total Payment
Total ¥270,000

 

Or if it’s an apartment/mansion for ¥100,000 rent, then it will probably be like this.

Monthly Payment
Rent ¥100,000
Common Service ¥5,000
First Payment
Reikin(key money) ¥105,000
Deposit ¥105,000
Fire Insurance ¥20,000
Guarantor Fee ¥50,000
Key Exchange Fee ¥15,000
Agent Fee ¥108,000
First Total Payment
Total ¥508,000

 

I hope this information is helpful for you to budget.