If you are a foreign resident searching for an apartment in Japan, you may have come across unfamiliar fees before you even sign a lease. Two that often cause confusion are the apartment viewing deposit and earnest money — known in Japanese as chukin (手付金). Understanding what these are, when you pay them, and whether you can get them back is essential before you hand over any cash. This guide explains both clearly, step by step.
What Is Earnest Money (Chukin) in Japan?
Earnest money, or chukin, is a sum paid to a landlord or real estate agency to signal that you are seriously committed to renting a specific apartment. Think of it as a good-faith deposit — it tells the landlord "please hold this unit for me while my application is being processed."
It is not the same as a security deposit (shikikin) or key money (reikin), though all of these can appear on a Japanese rental cost breakdown. Earnest money is specifically tied to the pre-contract stage.
When Do You Pay Chukin?
- After you have chosen an apartment and want it reserved while the agency processes your application.
- Before the formal lease agreement (chintai keiyaku) is signed.
- The amount varies but is often around one month's rent. Always confirm the exact figure in writing before paying.
What Is a Viewing Deposit?
Some real estate agencies — particularly those dealing with popular or high-demand properties — may ask for a smaller viewing deposit before or during the apartment viewing process. This is less common than earnest money but does occur. It is meant to show you are a genuine prospective tenant and not wasting the agency's time.
Viewing deposits are usually a small, fixed amount. They should be fully refundable if you decide not to proceed with the apartment. Always ask for a written receipt and confirm the refund policy in writing before paying.
Are These Deposits Refundable? Key Rules to Know
This is the most important question for foreign residents renting an apartment in Japan — and the answer depends on who cancels and when.
| Situation | What Typically Happens to Your Money |
|---|---|
| You cancel before the lease is signed | You may lose the earnest money (chukin). This is legal and common in Japan. |
| The landlord cancels before the lease is signed | The landlord must return double the earnest money to you, under Japan's Civil Code. |
| You decide not to rent after a viewing deposit | The viewing deposit should be fully refunded. Confirm this in writing beforehand. |
| Application is rejected (not your choice) | Earnest money should be returned to you in full. Keep all receipts. |
Japan's Civil Code (民法) does provide consumer protections around earnest money, including the "double return" rule when a landlord backs out. However, specific terms can vary, so always read the written agreement carefully and ask for an explanation in English if possible.
Step-by-Step: How to Handle Earnest Money Safely as a Foreign Resident
Step 1: Ask for Everything in Writing
Before paying any deposit, ask the agency to provide a written breakdown in simple Japanese or English. At minimum, confirm: the exact yen amount, the reason for the payment, and the refund conditions. Reputable agencies will have no problem providing this.
Step 2: Get a Receipt Immediately
Always ask for a stamped receipt (ryoshusho, 領収書) the moment you hand over money. This is your legal proof of payment. Without it, recovering your money if something goes wrong becomes much harder.
Step 3: Understand the Cancellation Terms
Ask directly: "If I cancel, do I lose this money?" and "If the landlord cancels, what happens?" Make sure you understand the answer before paying. If the agency cannot explain it clearly, that is a warning sign.
Step 4: Pay by Bank Transfer Where Possible
Paying by bank transfer leaves a clear paper trail. Cash payments, while common in Japan, are harder to trace if a dispute arises. If you must pay cash, your receipt is even more important.
Step 5: Keep Copies of All Documents
Photograph or scan your receipt, any written agreements, and the agency's explanation of deposit terms. Store these safely — you may need them if you need to request a refund later.
Special Considerations for Foreign Residents
Renting an apartment in Japan as a foreigner already comes with extra hurdles — some landlords require a Japanese guarantor, and language barriers can make negotiations stressful. When it comes to earnest money and viewing deposits, here are a few extra tips:
- Use an agency experienced with foreign residents. Agencies such as Sakura House, Able, or foreigner-friendly real estate services are more likely to explain fees in English and handle refunds fairly.
- Avoid paying large sums before your application is approved. A legitimate agency will not ask for a full month's earnest money until your application is at least underway.
- If something feels wrong, contact your local consumer affairs centre (Shohi Seikatsu Center). Japan has consumer protection resources, and many centres offer multilingual support or interpretation services.
- Check with your company or employer. If your employer or school arranged your housing, they may have experience with these fees and can advise or even assist.
How Chukin Fits Into Your Total Move-In Costs
It helps to see earnest money in context. When renting in Japan, your upfront costs can feel overwhelming. As a general guide (confirm current fees with the agency, as they vary), initial costs may include:
- Security deposit (shikikin): typically one to two months' rent
- Key money (reikin): sometimes one to two months' rent, paid to the landlord as a gift — usually non-refundable
- Agency fee (chukai tesuryo): typically one month's rent plus tax
- Earnest money (chukin): often around one month's rent, applied toward other fees if you proceed
- First month's rent (and sometimes the second month)
Note that if your application is approved and you sign the lease, earnest money is usually applied toward one of the other fees (such as the security deposit), so it is not always an additional cost — but always confirm this with your agency in writing.
Summary: What You Need to Remember About Apartment Earnest Money in Japan
Navigating apartment earnest money and viewing deposits in Japan as a foreign resident can feel daunting, but the rules are actually fairly clear once you know them. Here is a quick recap:
- Earnest money (chukin) is a pre-contract good-faith payment to reserve an apartment.
- If you cancel, you typically forfeit the earnest money.
- If the landlord cancels, they must return double the amount under Japan's Civil Code.
- Viewing deposits should be fully refundable if you decide not to rent — get this in writing.
- Always get a receipt, pay by bank transfer if possible, and keep copies of everything.
- Use agencies experienced with foreign residents and do not hesitate to ask questions in English.
Finding a good apartment in Japan takes patience, but once you understand the fee system, you can move through the process with much more confidence. You have every right to ask for clear explanations and written documentation — do not be afraid to do so. Good luck with your apartment search!