If your lease is coming up for renewal, you are probably asking yourself: is it cheaper to stay or move? The honest answer is that renewing your current apartment is almost always the lower-cost option in Japan — but moving can still make financial sense depending on your situation. This guide breaks down the typical costs on both sides so you can decide with confidence.
Why Apartment Renewal vs. Moving Costs in Japan Matter So Much
Japan's rental market involves a range of upfront fees that simply do not exist in many other countries. Moving is not just about packing boxes — it can mean paying key money, a new deposit, agency fees, and guarantor fees all over again. For foreign residents, the process also carries an extra layer of paperwork. Understanding all the costs before you commit either way is essential.
The Typical Costs of Renewing Your Lease
In Japan, most standard leases run for two years. When your contract ends, your landlord or management company will usually ask you to renew. Renewal is generally the simpler, cheaper path.
- Renewal fee (更新料, kōshin-ryō): Commonly one month's rent, though this varies by prefecture and landlord. Some landlords charge half a month's rent, and some charge nothing at all. Always confirm the exact amount in your current contract.
- Agency or management handling fee: Some management companies charge a small administrative fee (often around half a month's rent or a flat fee) for processing the renewal paperwork. Not all do — check your contract.
- Guarantor company renewal fee: If you use a rental guarantor company (hoshō gaisha), they typically charge an annual or biennial renewal fee, often around 10,000–20,000 yen. Confirm with your specific guarantor company as amounts vary.
- Renter's insurance renewal: Most leases require fire and liability insurance. Annual premiums are generally affordable — often in the range of 15,000–20,000 yen per two-year term — but confirm your own policy details.
In many cases, your total renewal cost will be roughly one to two months' rent. That is significantly less than the cost of moving.
The Typical Costs of Moving to a New Apartment
Moving in Japan involves a series of upfront fees paid before you even get the keys. These are sometimes called "initial costs" (初期費用, shoki hiyō).
- Security deposit (敷金, shikikin): Usually one to two months' rent, held against damage or unpaid rent.
- Key money (礼金, reikin): A non-refundable gift to the landlord. Often one to two months' rent, though many modern or foreigner-friendly apartments have reduced or eliminated this.
- Agency fee (仲介手数料, chūkai tesūryō): Paid to the real estate agency, typically one month's rent plus consumption tax.
- Guarantor company fee: A new contract with a guarantor company typically costs around half to one month's rent upfront.
- First month's rent and pro-rated rent: You often pay the first full month plus any days in a partial month.
- Renter's insurance (new policy): You will need a new policy for the new apartment.
- Moving company (引越し業者, hikkoshi gyōsha): Costs vary widely depending on distance, volume of belongings, and season. Moving during busy periods (March–April) tends to be significantly more expensive. Get multiple quotes.
- Restoring your old apartment (原状回復, genjō kaifuku): When you leave, you may be charged for cleaning or minor repairs beyond normal wear. The amount depends on the condition of the apartment and the terms of your original contract.
- Utility setup fees and address change costs: Small but worth factoring in — reconnecting utilities, updating your residence card (zairyū card) address at the municipal office, notifying your bank, employer, and other institutions.
In total, moving to a new apartment in Japan can realistically cost anywhere from three to six months' rent or more when all fees are added together. This is a guide figure — confirm actual amounts with your real estate agent and service providers.
Side-by-Side Cost Comparison
| Cost Item | Renewing Your Lease | Moving to a New Place |
|---|---|---|
| Renewal / Key money | ~1 month's rent (varies) | 0–2 months' rent (reikin) |
| Deposit | Already paid (no new cost) | 1–2 months' rent |
| Agency fee | Sometimes a small admin fee | ~1 month's rent + tax |
| Guarantor fee | ~10,000–20,000 yen renewal | ~0.5–1 month's rent (new contract) |
| Moving company | None | Varies — can be substantial in peak season |
| Old apartment restoration | None (you are staying) | Depends on condition and contract |
| Insurance | Renewal of existing policy | New policy required |
| Rough total | ~1–2 months' rent | ~3–6 months' rent or more |
These are general guide figures based on common market conditions. Actual costs vary by landlord, location, and agreement. Always confirm the exact amounts in your contract and with relevant parties.
When Moving Is Still Worth It
Despite the higher upfront cost, moving can be the right financial decision in certain situations:
- Your current rent is above market rate. If you can find a noticeably cheaper apartment nearby, the monthly savings may offset the moving costs within one to two years.
- Your life situation has changed. A new job location, a growing family, or a need to be closer to an international school are all valid reasons to absorb the moving cost.
- You find a zero-key-money, zero-deposit apartment. These are increasingly common, especially through services that cater to foreign residents. Reducing those big upfront fees makes the move more financially viable.
- Your landlord is raising the rent significantly at renewal. If the new rent erases the savings of staying, moving becomes more competitive.
Practical Tips for Foreign Residents Making This Decision
- Read your renewal notice carefully. Your landlord or management company should send written notice (usually two to three months before the lease ends) explaining the renewal fee and any rent changes.
- Negotiate. In Japan this is uncommon but not impossible, especially in slower rental markets. Politely asking for a waived or reduced renewal fee sometimes works.
- Use foreigner-friendly rental services if you do move. Agencies and platforms that specifically support foreign residents can help you navigate guarantor requirements, language barriers, and documentation more smoothly.
- Budget for the address change process. When you move, update your address on your residence card (zairyū card) at your local municipal office as soon as possible — this is a legal requirement. Then notify your bank, employer, and any international transfer services you use (such as Wise or Remitly) to avoid disruption.
- Compare moving company quotes. Do not accept the first quote. Getting three quotes is standard practice and can save a meaningful amount, especially if you can move outside of the March–April peak period.
Summary: Should You Renew or Move?
For most foreign residents in Japan, renewing your current lease is the financially safer and less stressful choice — particularly if you are happy with your current location and your rent is reasonable. The upfront costs of moving are substantial and easy to underestimate.
That said, moving makes clear sense if your rent is significantly above the current market rate, your circumstances have changed, or you can find an apartment with reduced initial fees. In that case, calculate your break-even point: divide the total moving cost by the monthly savings to find out how many months it takes to recover the expense.
Whichever path you choose, go in with full information, read every line of your contract, and do not hesitate to ask your landlord or agent to clarify any fees in writing. You have more options than you might think — and making a calm, informed decision is always the right first step.