Japanese Lease Contracts: Key Money, Deposits & the Fees Nobody Warns You About

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The Real Cost of Moving In: ¥80,000/Month Apartment Example

The monthly rent is just the beginning. Upfront costs routinely reach 4–6 months’ worth.

Here’s what you actually pay for a typical ¥80,000/month apartment in Tokyo:

Fee	Japanese Term	Amount	Refundable?
Deposit	敷金 (shikikin)	¥80,000 (1 month)	Partially — minus cleaning costs
Key money	礼金 (reikin)	¥80,000 (1 month)	No. Never.
Agent fee	仲介手数料 (chūkai tesūryō)	¥88,000 (1 month + tax)	No
First month’s rent	前家賃	¥80,000	N/A
Guarantor company fee	保証会社利用料	¥40,000–¥80,000 (50–100%)	No
Fire insurance	火災保険	¥15,000–¥20,000/year	No
Lock change	鍵交換費	¥15,000–¥25,000	No
Total upfront		¥378,000–¥433,000

That’s 4.7–5.4 months’ rent before you even move in. This is standard, not a scam.

What each fee actually means

Deposit (敷金 / shikikin) — Security deposit. Typically 1–2 months’ rent. Returned after move-out minus cleaning and repair costs. Some landlords charge 0 deposit (敷金ゼロ), but this often means higher cleaning fees at move-out.

Key money (礼金 / reikin) — Literally “gratitude money.” A non-refundable gift to the landlord for letting you rent their property. This is Japan-specific and feels outrageous to foreigners. It’s 0–2 months’ rent. 0 reikin listings exist and are increasingly common in Tokyo — search for 「礼金なし」 or 「礼金ゼロ」 on Suumo, Homes.co.jp, or through your agent.

Agent fee (仲介手数料) — Real estate agent’s commission. Legally capped at 1 month’s rent + tax (10%). Some discount agencies charge 0.5 months or even zero. Ask upfront.

Guarantor company fee (保証会社利用料) — Since most landlords require a Japanese guarantor (連帯保証人) and you likely don’t have one, a guarantor company steps in. Fee is 50–100% of one month’s rent upfront, plus annual renewal (usually ¥10,000/year). Companies: Casa, JID, Global Trust Networks (foreigner-friendly).

Fire insurance (火災保険) — Mandatory renter’s insurance. ¥15,000–¥20,000/year. Covers fire, water damage, liability. You can often choose your own insurer instead of the agent’s overpriced option.

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Understanding Your Contract

Japanese lease contracts are dense. If you can’t read the kanji, bring someone who can.

Two types of lease contracts

1. Ordinary Lease (普通借家契約 / futsū shakuya keiyaku) — ~90% of apartments

• Standard term: 2 years
• Tenant has the right to renew. Landlord cannot refuse without “just cause” (正当事由)
• Renewal fee: typically 1 month’s rent every 2 years
• You can terminate early with 1–2 months’ notice

This is the contract you want. It strongly protects tenants.

2. Fixed-Term Lease (定期借家契約 / teiki shakuya keiyaku) — ~10% of apartments

• Ends on a set date. No automatic renewal.
• Landlord is NOT obligated to offer a new contract
• Often used for temporarily vacant owner-occupied apartments
• Sometimes cheaper, but riskier for long-term planning

Always confirm which type you’re signing.

The special conditions trap (特約事項)

The 特約事項 (tokuyaku jikō) section is where landlords add custom rules. These override standard terms. Read every line. Common traps:

• “Tenant pays professional cleaning at move-out regardless of condition” — This means your deposit WILL be reduced by ¥30,000–¥50,000 minimum, even if the apartment is spotless.
• “No nail holes in walls” — Normally, small nail holes are considered normal wear. A 特約 can override this.
• “Pet deposit of 1 additional month” — Non-refundable in most cases.
• “Restoration to original condition (原状回復) at tenant’s expense” — Broadly worded versions can mean anything. Ask for specifics.

If you don’t understand a clause, ask before signing. Once your seal (印鑑) or signature is on the contract, you’ve agreed.

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Renewal Fees: The Cost of Staying

Every 2 years, your lease renews. This is NOT free:

Fee	Typical Amount
Renewal fee (更新料)	1 month’s rent
Renewal admin fee (更新事務手数料)	¥10,000–¥30,000
Guarantor company renewal	¥10,000/year
Fire insurance renewal	¥15,000–¥20,000

For an ¥80,000 apartment, renewal costs ¥105,000–¥130,000 every two years.

Can you negotiate renewal fees?

Sometimes. Options:

• Ask for a reduced renewal fee (0.5 months instead of 1). Works better in areas with high vacancy.
• Ask for a rent reduction at renewal. If market rents have dropped, you have leverage.
• Threaten to move. Landlords lose more from vacancy than from a discounted renewal. But only bluff if you’re prepared to actually move.

Know this: Under Japanese law, the landlord cannot refuse to renew an ordinary lease without just cause. Even if you refuse to pay the renewal fee, the contract automatically renews on the same terms (法定更新 / hōtei kōshin). However, this creates friction — most people just pay.

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Move-Out: Getting Your Deposit Back

The move-out process

Step 1: Give written notice (解約通知) — typically 1–2 months before your move-out date. Check your contract for the exact notice period. Send it in writing (email + paper is safest).

Step 2: Move-out inspection (退去立会い / taiky-tachiai) — The landlord or management company walks through the apartment with you. They note every scratch, stain, and damage.

Step 3: Receive the deduction breakdown (精算書 / seisansho) — Lists what’s being deducted from your deposit.

Step 4: Deposit returned — Usually within 1–2 months after move-out, minus deductions.

What they CAN’T charge you for (国交省ガイドライン)

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has clear guidelines on normal wear and tear (経年劣化 / keinen rekka):

Normal Wear (FREE)	Your Responsibility (YOU PAY)
Wall discoloration from sunlight	Crayon/marker on walls
Pin holes from hanging pictures	Large nail/screw holes
Carpet wear from furniture	Cigarette burns
Fading of tatami	Pet scratches on floor
Minor scuffs on flooring	Water damage from neglect

What they WILL charge (even if you’re careful)

• Professional cleaning (ハウスクリーニング): ¥30,000–¥50,000 for a 1K/1LDK. Almost always deducted if it’s in your 特約事項.
• Key replacement: ¥15,000–¥25,000
• AC cleaning: ¥10,000–¥15,000 (sometimes separate)

How to protect your deposit

1. Take photos on move-in day. Timestamped. Every room, every wall, every scratch. Email them to yourself as evidence.
2. Take photos on move-out day. Same angles. This proves you didn’t cause damage.
3. Clean the apartment before the inspection. Especially the kitchen, bathroom, and ventilation fans.
4. Attend the move-out inspection in person. Don’t let them inspect without you.
5. Don’t sign the deduction breakdown on the spot if you disagree. Say: 「確認してから返答します」 (Kakunin shite kara hentō shimasu — “I’ll respond after reviewing”)

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Pitfalls and Scams Targeting Foreigners

”Foreigner surcharge” via unnecessary options

Some agencies bundle extras: 24-hour support service (¥15,000–¥20,000/year), disinfection spray (消毒料 ¥15,000), internet setup (¥20,000+). Many of these are optional. Ask: 「これは必須ですか？外せますか？」 (Kore wa hissu desu ka? Hazusemasu ka? — “Is this mandatory? Can I remove it?”)

Overcharging at move-out

If the deduction seems too high:

1. Request an itemized breakdown
2. Compare against the MLIT guidelines (国交省ガイドライン)
3. Contact Houterasu (法テラス) at 0570-078374 — free multilingual legal consultation
4. Your ward’s free legal consultation (無料法律相談) — check your ward office website

Refusing to rent to foreigners

It happens. It’s declining but still real. How to handle:

• Use foreigner-friendly agencies: GaijinPot Apartments, Plaza Homes, Real Estate Japan, Sumaity
• Have a Japanese friend or colleague call on your behalf
• A guarantor company reduces landlord concerns
• Larger corporate landlords (UR Housing, Leopalace) don’t discriminate

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Troubleshooting

Problem	Cause	Solution
Landlord won't return deposit	Excessive deductions or delay	Request itemized breakdown. Compare to MLIT guidelines. Contact Houterasu (0570-078374).
Agent pushing unnecessary fees	"Option services" bundled in	Ask 「これは必須ですか？」 for each line item. Remove optional ones.
Contract is Japanese-only	Standard practice	Ask agent for English translation or summary. Bring a Japanese-speaking friend to signing.
Landlord refuses renewal	Ordinary lease: landlord needs "just cause." Fixed-term: lease simply ends.	For ordinary leases, landlord CANNOT refuse without just cause. Seek legal advice if pressured.
Mold damage dispute	Often structural (landlord's problem), but landlord may blame tenant	Document with photos. Mold from structural issues ≠ your responsibility. Cite MLIT guidelines.

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FAQ

Q: Can I negotiate key money (礼金) to zero?

A: Yes, in many cases. It’s easier in: older buildings, less popular areas, apartments that have been vacant for months. The agent can ask on your behalf. If the landlord refuses, look for 「礼金ゼロ」 listings — they’re common on Suumo and Homes.co.jp.

Q: Do I need a personal guarantor (連帯保証人)?

A: Most foreigners use a guarantor company (保証会社) instead. The landlord accepts this. Cost: 50–100% of one month’s rent upfront + annual renewal. Companies like Global Trust Networks specialize in foreign residents.

Q: What happens if I break my lease early?

A: You typically owe 1–2 months’ rent as an early termination penalty (違約金). Check your contract — some require the full remaining lease amount (rare but possible). You also lose your key money and may lose part of your deposit.

Q: Can my landlord raise the rent?

A: Yes, but only at renewal, and only with mutual agreement. If you disagree, the existing rent continues. The landlord must petition a court to force an increase — this is extremely rare for residential leases.

Q: Should I get the contract translated?

A: If your Japanese isn’t strong, yes. Some agents provide English summaries. At minimum, have a Japanese-speaking friend review the 特約事項 section. The small cost of translation can save you hundreds of thousands of yen in surprise charges.

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Related Guides

• How to Find a Rental Apartment — apartment hunting in Tokyo
• How to Register at Your Ward Office — required within 14 days of moving
• How to Open a Bank Account — needed for rent payments and direct debit
• How to Pay Bills in Japan — rent, utilities, and insurance payments

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Summary

1. Budget 4–6 months’ rent upfront. Key money, deposit, agent fee, guarantor, insurance — it adds up fast. Negotiate key money down or find 礼金ゼロ listings.
2. Read the 特約事項 before signing. That’s where the move-out charges hide. If you don’t understand a clause, ask.
3. Take timestamped photos on move-in day. This single action protects your deposit more than anything else.

Next step: If you’re apartment hunting, read our rental apartment guide. If you’ve found a place, bring a Japanese speaker to the contract signing and photograph everything on Day 1.

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References and Official Sources

1. Ministry of Land, Infrastructure, Transport and Tourism (国土交通省)
   “Guidelines for Restoration to Original Condition” (原状回復ガイドライン)
   https://www.mlit.go.jp/jutakukentiku/house/jutakukentiku_house_tk3_000020.html
   Accessed February 2026. Official MLIT guidelines (国交省ガイドライン) defining tenant vs. landlord responsibility for apartment condition at move-out. Distinguishes normal wear and tear (経年劣化) from tenant-caused damage. These guidelines are not legally binding but widely used by courts as reference in deposit disputes.

2. Ministry of Land, Infrastructure, Transport and Tourism
   ”Brokerage Fee Regulations” (仲介手数料)
   https://www.mlit.go.jp/
   Accessed February 2026. Confirms that real estate agency fees (仲介手数料) are legally capped at 1 month’s rent plus 10% consumption tax for residential rentals under the Building Lots and Buildings Transaction Business Act.

3. Japan Legal Support Center (Houterasu / 法テラス)
   “Multilingual Legal Consultation”
   https://www.houterasu.or.jp/multilingual/index.html
   Contact: 0570-078374
   Accessed February 2026. Government-funded legal support center providing free multilingual consultations on tenant-landlord disputes, deposit recovery, and contract issues. Available in English, Chinese, Korean, Spanish, Portuguese, Vietnamese, Tagalog, Nepali, Thai, and Indonesian.

4. Civil Code of Japan (民法)
   “Lease Contracts” (賃貸借契約)
   https://elaws.e-gov.go.jp/document?lawid=129AC0000000089
   Accessed February 2026. Articles 601-622 govern lease agreements in Japan. Article 621 addresses restoration to original condition obligations. The 2017 Civil Code amendment clarified that tenants are not responsible for normal wear and tear, though special contract terms (特約) can modify this within reasonable limits.

5. Act on Land and Building Leases (借地借家法)
   https://elaws.e-gov.go.jp/document?lawid=403AC0000000090
   Accessed February 2026. Article 26 establishes tenant’s right to renewal of ordinary leases (普通借家契約) unless the landlord has “just cause” (正当事由). Article 28 defines just cause. Article 38 governs fixed-term leases (定期借家契約) which do not automatically renew.

Note on Key Money (礼金): The practice of 礼金 (reikin, “gratitude money”) is a uniquely Japanese custom with historical origins in post-WWII housing shortages. It is a non-refundable payment to the landlord separate from rent and deposit. While declining in prevalence, especially in competitive rental markets, it remains standard practice in Tokyo. Properties advertised as 礼金ゼロ or 礼金なし (zero key money) are increasingly common, particularly for older buildings or less popular locations.

Note on Renewal Fees (更新料): The 更新料 (kōshinryō) renewal fee, typically 1 month’s rent every 2 years, is legal if specified in the lease contract special terms (特約事項). The Supreme Court of Japan ruled in 2011 that renewal fees are valid as long as they are clearly stated in the contract and not deemed unreasonably excessive. Renewal is governed by the Act on Land and Building Leases (借地借家法), which grants tenants automatic renewal rights (法定更新) even without paying renewal fees, though this creates legal friction.

Note on Ordinary vs. Fixed-Term Leases: Approximately 90% of Japanese residential leases are ordinary leases (普通借家契約) with strong tenant protections and renewal rights. Fixed-term leases (定期借家契約) comprise about 10% and offer no renewal guarantee. Landlords must clearly inform tenants in writing if offering a fixed-term lease. Fixed-term leases are often used for temporarily vacant owner-occupied properties or properties facing future redevelopment.

Note on Special Contract Terms (特約事項): The 特約事項 section of lease contracts can override standard terms, including the MLIT guidelines on restoration costs. However, Japanese courts have ruled that special terms must be “clearly explained” to the tenant and cannot be unreasonably one-sided. Common disputed special terms include mandatory professional cleaning fees and expanded tenant responsibility for normal wear.

Dispute Resolution: Tenants facing unreasonable deposit deductions should: (1) request itemized breakdown (精算書); (2) compare charges against MLIT guidelines; (3) contact Houterasu (0570-078374) for free consultation; (4) use ward office free legal consultation services (無料法律相談); (5) consider Small Claims Court (少額訴訟) for amounts under ¥600,000 if informal resolution fails.