For many people renting a home in Japan, the sheer cost of initial move-in expenses—on top of the rent itself—can come as a surprise. Common fees such as security deposits, key money, brokerage fees, guarantor fees, and fire insurance often total several months’ worth of rent and are required upfront. This financial burden can be particularly challenging for foreign nationals or younger tenants starting out on their own.
As a result, properties that allow installment payments for initial costs are attracting growing attention.
This article explores what qualifies a property as “installment-friendly,” how to find such listings, important considerations before opting for this payment method, and a breakdown of how the cost structure works in practice.
What Are Installment-Friendly Properties?
Installment-friendly properties are those that allow tenants to pay initial move-in costs—such as the security deposit, key money, brokerage fee, and guarantor fee—in several payments rather than all at once.
Traditionally, real estate contracts in Japan require full payment of all fees at the time of signing. However, in recent years, a growing number of agencies and property managers have begun offering more flexible payment options in order to attract and accommodate prospective tenants.
Which Fees Can Typically Be Paid in Installments?
The following cost items are often eligible for installment payments, depending on the property and service providers involved:
| Fee Item | Installment Eligibility | Notes |
|---|---|---|
| Security Deposit & Key Money | △ (Partially negotiable) | Key money is typically required upfront, but negotiable in some cases |
| Brokerage Fee | ○ | Many agencies are open to installment arrangements |
| Guarantor Company Fee | ○ | Possible if the guarantor company supports installment plans |
| Fire Insurance Premium | △ | May be allowed if the insurance provider permits it |
| Key Replacement Fee | ○ | Often negotiable with the management company |
| Rent for Move-in and Next Month | ○ | Pro-rated move-in rent is often paid upfront, but future rent may be split |
Two Main Methods for Paying Initial Costs in Installments
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Credit Card Installments
If the real estate agency or guarantor company accepts credit card payments, tenants can charge the full amount to their card and later select an installment or revolving plan through their credit card provider.
Key Points:
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Payment must remain within the card’s credit limit
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The real estate agency must support credit card transactions
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Installment terms and interest rates vary by card issuer
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Cash-Based Installments (By Agreement)
This involves reaching an agreement with the property manager or agency to split payments—e.g., “¥___ this month and the remainder next month.” This type of installment is often informal and may be noted in an addendum or signed memorandum.
Key Points:
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Negotiation is essential; arrangements are made on a case-by-case basis
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Requires trust—proof of income or financial stability may be requested
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Failure to meet agreed payments could result in immediate contract termination
How to Find Properties That Allow Installment Payments
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Inquire Directly with the Real Estate Agency
Most property listings do not explicitly state whether installment payments are available. Therefore, asking directly—such as:
“I’m interested in this property. Could you let me know if the initial costs can be paid in installments?”
—can be very effective.
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Focus on Zero Deposit/Key Money or Free Rent Listings
Properties with reduced upfront costs, such as those with no security deposit or key money, or those offering a rent-free period, naturally lower the need for installment plans and increase room for negotiation.
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Consult Real Estate Agencies Specializing in International Tenants
Agencies experienced in supporting foreign residents tend to offer more flexible arrangements, including installment options, recognizing the unique financial situations of international clients.
Key Considerations When Using Installment Payments
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Installment Fees May Apply
Especially when using a credit card, interest and service charges may be incurred depending on the number of installments. Plans with ten or more payments could result in a significantly higher total payment.
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Late Payments Can Damage Your Credibility
Failing to meet agreed payment deadlines—particularly in deferred arrangements—can compromise your relationship with the real estate or guarantor company. In severe cases, it may even lead to termination of the lease.
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Always Keep Written Records of the Installment Agreement
Do not rely solely on verbal agreements. Ensure that the installment terms are documented—either as a formal contract amendment or via written email confirmation. This helps prevent misunderstandings and protects all parties involved.
Who Should Consider Using Installment Payments?
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Individuals who are eager to move but have yet to accumulate sufficient savings
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New employees or students expecting their first paycheck or scholarship disbursement shortly after move-in
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International tenants who face delays due to overseas fund transfers
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Those with adequate credit card limits and the ability to manage installment plans responsibly
Well-Planned Installments Can Enhance Your Quality of Life
Opting for installment payments can be a valuable alternative to giving up on relocation simply because a lump-sum payment isn’t feasible. That said, it’s essential to remember that installments are a form of debt, and should be approached with a clear and manageable repayment plan.
When searching for a property, it’s important to consider not just the total cost, but also whether flexible payment options are available. Doing so can help you find a residence and contract style that genuinely suit your financial and lifestyle needs.