Reikin, Shikikin and Guarantors: The Upfront Costs of Renting in Japan

Understand key money, security deposits, agency fees, guarantor companies and renewal fees so you can estimate the real cost of signing a lease in Japan.

Published October 19, 2026 at 11:02 PM JST | By Tokyo Paul

Quick answer: Renting in Japan usually involves several upfront payments: a refundable security deposit (shikikin), non-refundable key money (reikin) in some areas, an agency fee, first month's rent, insurance and a guarantor arrangement. A guidebook for foreign renters hosted by the Ministry of Land, Infrastructure, Transport and Tourism gives a rough total of four to seven months' rent. Renewal fees may follow, so read the contract.

Why the upfront costs surprise newcomers

In many countries, renting an apartment means paying a deposit and the first month's rent. In Japan the list is longer. Several fees are paid once, at the time the lease is signed, and some are never returned. The total can be several months of rent, which is why newcomers often find the first lease more expensive than they expected.

The costs are not hidden, but they carry Japanese names that are unfamiliar to many visitors and new residents. Learning the vocabulary makes quotes easier to compare. Ask the agent for a full written estimate of every item before you apply, including small items such as the application fee, the insurance premium and any management fee. A guidebook for foreign renters, published on the site of the Ministry of Land, Infrastructure, Transport and Tourism, puts the rough total at four to seven months' rent, though it varies by region.

Shikikin: the security deposit

Shikikin is the security deposit. It is held by the landlord as protection against unpaid rent and the cost of repairs or cleaning when you leave. The prefectural guide from Saitama says the deposit is generally one to three months' rent, and the national guidebook says about two months is usual. Any balance is returned after you move out.

In some regions, the deposit has a different name and size. The guidebook mentions guarantee money in some areas, which may be about six months' rent. It also notes a custom called shikibiki, in which a set portion of the deposit is never returned, common in the Tokai, Kansai and Kyushu regions. Ask the agent how the deposit will be handled at move-out, and request that the terms be written in the contract.

Reikin: key money

Reikin is a one-time payment to the landlord when you sign, often called key money. Unlike the deposit, it is not returned. The guidebook says it is often one to two months' rent in the Kanto region, and not required by every property. The Saitama guide gives a similar range.

Because reikin is not refunded, it is worth comparing properties with and without it. A listing that shows no key money may carry other charges, so look at the whole cost and not one line. Some listings are advertised without key money, and an agent can show you such options if you ask. Always check the current terms on the property listing and the contract, and ask the agent to point to the exact clause that covers the payment.

Agency fee, first rent and other charges

The agency fee is paid to the real estate agent who arranges the lease. The Saitama guide says that in principle the tenant and landlord each pay half a month's rent, for a total of one month, while the national guidebook says up to one month's rent. You also pay the first month's rent, and rent is usually paid one month in advance, so the following month is often due at signing too.

Other items include a management or common-service fee, an application fee, and a premium for insurance against damage or fire. Ask whether the application fee is refunded if no contract is signed. Together, these small items add up, so list each one when you compare apartments. A fixed price on the listing does not always include them, so request the final estimate.

Guarantors and guarantee companies

Most landlords require a guarantor, a person or company that will pay if the tenant cannot. A joint guarantor is often a relative or friend with enough income in Japan, but many foreign residents do not have one. In that case a rent guarantee company can act in the role. The company pays overdue rent on your behalf, and you must reimburse it.

The national guidebook says a guarantee company typically charges 35 to 50 percent of one month's rent for two years, and that this is not insurance. Landlords may accept only certain guarantee companies, so ask early. Schools or employers may offer assistance in some cases. Ask the agent which guarantor options the landlord accepts before you apply.

Renewal fees and contract types

Leases come in two main types. A regular lease is usually renewed automatically, and a renewal fee may apply at each renewal. The guidebook advises asking about it. A fixed-term lease ends on a set date and cannot be renewed in the same way, so a new contract must be signed to stay, which often involves new fees. Check which type you are signing, and what it means for how long you can stay.

Notice rules matter at the end. Termination notice is usually one or two months in advance, and moving out without proper notice can jeopardize the deposit refund. When you leave, repair costs beyond normal wear are deducted from the deposit. Take dated photos when you move in, and keep a copy of the contract. Agree on any end-of-lease cleaning charges before signing; the prefectural guide advises confirming which end-of-lease fees apply, and notes that a deposit may not be returned if notice is not given properly.

Tips for comparing costs and getting help

Create a simple comparison table with rent, management fee, deposit, key money, agency fee, guarantor charge, insurance and renewal fee. Convert the one-time charges into a total in months of rent. Bring a Japanese speaker if possible, or look for an agent that offers services in your language. The Ministry of Land, Infrastructure, Transport and Tourism and local governments publish housing information for foreign nationals, and some offer multilingual guides.

Never sign a contract that you do not understand. Ask the agent to explain the important points, and request translations or summaries where available. This guide shares general information; rules change, so confirm details with the official agency or provider before you act. Amounts differ by region, property and landlord, so use these figures as a rough guide.

Frequently Asked Questions

What is reikin in Japan?

Reikin, or key money, is a non-refundable payment to the landlord at the start of a lease. A national guidebook says it is often one to two months' rent in the Kanto region, and some properties do not require it. Compare listings with and without reikin before you decide.

How much is the upfront cost of renting an apartment in Japan?

A guidebook for foreign renters gives a rough guide of four to seven months' rent in total, including the deposit, key money, agency fee, insurance and first month's rent. The amount varies by region and property, so ask for a written estimate of every charge.

Do foreigners need a guarantor to rent in Japan?

A guarantor is generally required. If you have no suitable person, a rent guarantee company can act as guarantor for a fee, which the national guidebook says is typically 35 to 50 percent of one month's rent for two years. You reimburse the company if it pays rent for you.

Want to go deeper? Tokyo Paul's book Building a Life in Japan is available on Amazon.

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