Japan’s rental system can seem complex, but it doesn’t have to be. Here’s a clear guide to key money, deposits, and guarantors for foreigners renting in 2026.
Covered in this Article
- What is “key money” and why it exists
- How deposits and cleaning fees work
- What guarantors do and how to find one
- Foreigner-friendly rental options
- Money-saving tips for 2026 renters
Introduction
When renting an apartment in Japan, foreigners often encounter unfamiliar terms like reikin (key money), shikikin (deposit), and hoshōnin (guarantor).
These have deep cultural and historical roots in Japan’s housing system — but modern rental companies are simplifying them to help international residents.
This guide breaks down everything you need to know — clearly and practically — so you can rent with confidence in 2026.
What Is “Key Money” (礼金 / Reikin)?
Key money is a non-refundable “gift” traditionally paid to the landlord when signing a lease.
- Amount: Usually 1–2 months’ rent
- Purpose: Originally seen as a gesture of appreciation when housing was scarce after WWII
- Refundable? No — it’s considered a gratuity
Modern Trend
Many landlords and agencies no longer charge key money — especially foreigner-friendly or corporate-managed apartments (like UR Housing, Oakhouse, or Leopalace21).
When searching, look for listings that say:
“礼金なし” (reikin nashi) — No key money
What Is a “Deposit” (敷金 / Shikikin)?
The deposit is a refundable amount paid at the start of your lease, usually equal to 1–2 months’ rent.
- Used to cover unpaid rent or damages beyond normal wear and tear
- Refunded when you move out (minus cleaning or repair fees)
Example:
If your monthly rent is ¥80,000 and your deposit is one month, you’ll pay ¥80,000 up front.
When you move out, you might get ¥50,000–¥70,000 back, depending on cleaning costs.
Tip: Request a written itemized list when your deposit is deducted — this is your right as a tenant.
Cleaning & Restoration Fees
Japan’s housing culture emphasizes returning an apartment in its original condition (“原状回復 / genjō kaifuku”).
So when you move out, landlords usually charge:
- Basic cleaning fee: ¥20,000–¥50,000
- Repair costs: If you damage walls, floors, or fixtures
Pro Tip: Take photos of the apartment during move-in to avoid unfair damage claims later.
What Is a “Guarantor” (保証人 / Hoshōnin)?
In Japan, most landlords require a guarantor — someone who agrees to pay your rent if you can’t.
Two Main Types:
- Personal Guarantor (individual)
- Typically a Japanese friend, relative, or employer
- Rarely accepted for foreigners unless you have strong local connections
- Guarantor Company (保証会社 / hoshō-gaisha)
- A paid service that acts as your guarantor
- Commonly required by agencies for foreign tenants
Fee: Usually 30–100% of one month’s rent (paid once, sometimes renewed annually)
Tip: Guarantor companies like GTN (Global Trust Networks) and Nihon Safety specialize in helping foreign residents.
How the Full Payment Looks
Here’s what a typical first-time rental cost might include:
| Fee | Description | Amount (Example) |
|---|---|---|
| Deposit (Shikikin) | Refundable security deposit | ¥80,000 |
| Key Money (Reikin) | Non-refundable gift | ¥80,000 |
| Agency Fee | Paid to real estate company | ¥80,000 |
| Guarantor Fee | Paid to guarantor company | ¥40,000 |
| Fire Insurance | Required by law | ¥15,000 |
| First Month’s Rent | Paid in advance | ¥80,000 |
| Total Initial Cost | ≈ ¥375,000 |
Reality Check: Foreign-friendly apartments often reduce this to around ¥200,000–¥250,000 with no key money.
Foreigner-Friendly Housing Without Key Money
UR Urban Renaissance Housing
- No key money, no agency fee, no guarantor
- Government-managed apartments across Japan
- English consultation available
https://www.ur-net.go.jp/
GaijinPot Housing Service
- English support, flexible stays
- No guarantor needed
https://www.gaijinpot.com/housing/
Leopalace21
- Furnished apartments for short or long term
- Simplified contracts for foreigners
https://www.leopalace21.com/
OYO Life Japan (OYO Rooms)
- Mobile app-based rental system
- Fully furnished units, no deposits or key money
https://www.oyolife.co.jp/
Tips for Saving Money
- Search for “敷金・礼金なし” (no deposit or key money) apartments.
- Compare listings — some agencies hide fees in “management costs.”
- Use a guarantor company instead of a friend for convenience.
- Move in during off-peak months (June or December) to negotiate discounts.
- Consider sharehouses for lower upfront costs and shorter contracts.
Key Takeaways
- Key money is a traditional, non-refundable fee — but many modern apartments waive it.
- Deposits are refundable, minus cleaning or repair costs.
- Guarantors ensure landlords are protected; use a guarantor company if needed.
- Look for listings labeled “no key money / no deposit” to save money.
- Foreigner-friendly companies like UR, Leopalace, and GaijinPot Housing simplify the process.
Call to Action
Moving to Japan soon?
Follow and Contact Refer Japan for step-by-step housing guides, real estate advice, and updates on foreigner-friendly apartment listings for 2026.
Disclaimer
Rental policies, fees, and guarantor requirements vary by region and landlord. Always confirm conditions before signing or paying.