Renting your first apartment in Japan can feel overwhelming, especially when you see a long list of upfront costs you've never encountered before. Two of the most confusing charges for foreigners are reikin (key money) and shikikin (security deposit). Understanding what each one is, how much to budget, and what you can — or cannot — get back will help you avoid unpleasant surprises and negotiate with confidence.
What Is Reikin (Key Money)?
Reikin (礼金) literally means "thank-you money." It is a one-time, non-refundable payment made to the landlord when you sign your lease. Historically, it was a gift to thank the landlord for renting to you. Today it has no practical service attached to it — you simply pay it and it is gone.
Not every apartment charges reikin. Some listings, especially newer buildings or those targeting foreign residents, advertise reikin zero (no key money). Always check the listing carefully before you assume.
What Is Shikikin (Security Deposit)?
Shikikin (敷金) is a refundable deposit held by the landlord while you live in the apartment. Its purpose is to cover any damage you cause beyond normal wear and tear, or to cover unpaid rent if you leave without paying. When you move out, the landlord deducts legitimate repair costs and returns the remainder to you.
This is similar to a security deposit in Western countries, so the concept should feel familiar — but the rules around deductions in Japan have some important details you should know (explained below).
How Much Do Reikin and Shikikin Typically Cost?
Costs are usually quoted in units of monthly rent. As a general guide, common ranges look like this:
| Charge | Typical Range | Refundable? |
|---|---|---|
| Reikin (key money) | 0 to 2 months' rent | No |
| Shikikin (security deposit) | 1 to 2 months' rent | Partially or fully, depending on condition |
| Agency fee (chūkai tesūryō) | Around 1 month's rent + tax | No |
| First month's rent + pro-rated days | 1 to 2 months' rent | No |
This means your total move-in cost can easily reach four to six months' rent before you even unpack. Always treat these figures as a guide and confirm the exact breakdown in writing with your real estate agent before signing anything.
What Can the Landlord Deduct From Your Shikikin?
Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has published guidelines to protect tenants. Under these guidelines:
- Normal wear and tear — scuffs on walls from furniture, minor fading from sunlight — is the landlord's responsibility and should not be deducted from your deposit.
- Damage you caused — holes in walls from hanging pictures, burns, stains, or mold caused by poor ventilation — can legitimately be charged to you.
- Cleaning fees — if the apartment is left in a reasonably clean condition, a full professional cleaning charge should not automatically come out of your deposit. However, many leases include a clause that makes cleaning fees a fixed deduction regardless. Read your contract carefully.
If you receive a move-out statement and believe the deductions are unfair, you have the right to dispute them. The MLIT guidelines are not legally binding in every case, but they carry significant weight if a dispute goes to mediation.
Practical Tips for Foreigners Renting in Japan
1. Document Everything at Move-In
On the day you receive your keys, walk through the entire apartment and photograph every scratch, stain, or mark. Send those photos to your agent or landlord by email so there is a dated record. This simple step can save you money when you move out.
2. Look for Reikin-Free Apartments
Many apartments — particularly those listed on platforms that cater to foreigners, or managed by companies like Leo Palace 21 or Sakura House — do not charge reikin. Searching for "礼金なし" (reikin nashi) or filtering by "no key money" on sites like Suumo or Homes can significantly reduce your upfront cost.
3. Use a Guarantor Company If You Have No Japanese Guarantor
Most landlords require a Japanese guarantor (hoshōnin). If you don't have one, a rental guarantor company (hoshō gaisha) can fill this role for a fee, typically around 0.5 to 1 month's rent upfront. Services like GTN (Global Trust Networks) specialise in helping foreign residents with this requirement. Confirm their latest fees and terms on their official website.
4. Get Everything in Writing
Before you sign, ask for a full written breakdown of all initial costs and the move-out conditions in your lease (preferably with an English translation or summary). A reputable agent will provide this without hesitation.
5. Budget Carefully for the Full Move-In Amount
If you are transferring money from overseas to cover your initial costs, factor in the total upfront amount — not just the first month's rent. Services like Wise or Remitly can help you move money into your Japanese bank account efficiently. Check their current rates and fees on their official sites before transferring.
Is Reikin Becoming Less Common?
Yes, gradually. In major cities like Tokyo and Osaka, an increasing number of landlords — particularly those who struggle to find tenants in competitive markets — are dropping reikin to attract renters. In rural areas and older buildings, it remains more common. If you are flexible on location or building age, you may be able to avoid it entirely.
Summary: What You Need to Remember
Navigating apartment costs in Japan is genuinely challenging as a foreigner, but it becomes much more manageable once you understand the basics. Here is a quick recap:
- Reikin is non-refundable key money paid to the landlord — not all apartments charge it, so shop around.
- Shikikin is a refundable security deposit — you should get most or all of it back if you leave the apartment in good condition.
- Your total move-in costs can be four to six months' rent, so plan your budget well in advance.
- Document the apartment's condition thoroughly on move-in day to protect your deposit.
- If you need a guarantor, specialist services like GTN can help foreign residents without a Japanese guarantor.
Renting in Japan as a foreigner takes patience, but thousands of people in your exact situation do it successfully every year. Armed with the right information, you can approach the process confidently, ask the right questions, and make sure you keep as much of your hard-earned money as possible.