Rental properties

Various costs of rental properties

  • List of various costs which are required when moving in (this is a abbreviated version which can vary depending on the property) 
Explanation Phase
Purpose Item Explanation Phase

Cost

Security Deposit The landlord will receive and deposit the Security Deposit at the time the contract is signed. (Depending on the region, store and office type, the Security Deposit might be called Bond Payment or Guarantee). Any repair costs will be deducted from the Security Deposit at the time of move-out. Contract Date
Key Money At the time the rental contract is signed, the so-called Key Money (the Japanese word for Key Money is Rei Kin, meaning gratitude) is paid to the owner of the property. Depending on the region, the Key Money amounts to about two months' rent. The Key Money will not be returned to the renter.
Initial Rent Prior to moving in, the rent for current or the next rental month has to be paid in advance.
Management Fee Expenses, which are necessary for the maintenance of common areas. The management fee has to be paid every month. (In some cases, the Management Fee is included in the rent.)
Broker Fee The renter has to pay a commission to the real estate agency which introduced the property.
Fire Insurance
Householder's Insurance
At the time the renter moves into his/her new home, a fire insurance needs to be obtained. The fire insurance covers damages from fire and water leakage. When the rental contract is renewed, the fire insurance needs to be renewed, as well. The insurance premium depends on the size and structure of the rental premises, but usually amounts to approximately 20,000 Yen.
Others House Cleaning Costs, Disinfection Costs, Key Replacement Costs, and so forth

required items

Certificate of Residence All individuals who will be registered at the new residence Contract Date
Personal Seal
Co-Signer In case the renter can no longer make rental payments, it becomes the co-signer's duty to make the payments in lieu of the renter. Since the co-signer holds the same responsibility as the renter, only people one can fully trust should be asked to become co-signer. (Properties without the co-signer system do also exist.)
Co-Signer's Personal Seal  
Tax-Income Certificate Documents which proof the income of the renters
Others Driver's license, health insurance card, co-signer's income and employment verification documents might be required.