For many individuals renting a home in Japan, the high cost of initial fees can come as a surprise. Leasing agreements often require payments totaling several times the monthly rent. This can be a particularly steep barrier for foreign nationals or those embarking on their first solo move.
So how can you reduce these initial expenses and still secure a quality rental property?
In this article, we present seven practical strategies that can help minimize upfront costs during the rental process. These real-world techniques are designed to help you begin your new chapter with confidence—without stretching your budget beyond reason.
1. Choose Properties with No Security Deposit or Key Money
In Japan, the security deposit is typically reserved for repairs upon move-out, while key money is considered a non-refundable gratuity to the landlord. Both significantly contribute to the initial cost of renting.
Today, many properties are available with zero deposit and zero key money, which can substantially reduce upfront expenses.
Points to Note:
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Properties without key money may impose penalties for early termination of the lease
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In lieu of a security deposit, a fixed cleaning fee may be charged upon move-out—be sure to review the lease terms carefully
2. Compare Brokerage Fees Across Agencies
Brokerage fees—paid to the real estate agency—are legally capped at one month’s rent plus consumption tax. However, some agencies run promotions offering half-price fees or even zero brokerage fees.
Tips for Smart Comparison:
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Check whether multiple agencies are listing the same property
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Use search filters on real estate websites to find “No Brokerage Fee” listings
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Request and compare quotes from different agencies before making a decision
3. Consider Properties Offering Free Rent Incentives
A “Free Rent” property offers a promotional period—typically the first month rent-free—which effectively reduces your initial financial burden.
Advantages:
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Save the equivalent of one month’s rent (e.g., ¥80,000 saved on an ¥80,000/month lease)
Points to Note:
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Many of these offers include conditions such as penalties for early termination, often if you leave within the first year
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Management fees and guarantor fees still apply during the free rent period
4. Opt for Furnished Properties
Purchasing appliances and furnishings independently can easily exceed ¥100,000. Fully furnished properties allow you to move in and start living immediately—without the need for major upfront purchases.
Items Commonly Included:
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Refrigerator, washing machine, microwave
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Bed, curtains, lighting fixtures, etc.
Points to Note:
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Monthly rent may be slightly higher compared to unfurnished units
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You may be responsible for repair costs in the event of damage to provided furnishings (be sure to confirm this in the lease agreement)
5. Review Fire Insurance and Guarantor Fees
Fire insurance premiums and guarantor company fees are typically included in the initial move-in costs. Since these services vary by real estate agency, there can be notable differences in pricing.
Smart Tips:
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Ask if you can select your own fire insurance provider. While many agencies specify their preferred partners, some allow tenants to choose independent coverage.
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Guarantor fees can range widely—from 30% to 100% of the monthly rent—so it’s advisable to compare estimates from multiple companies before proceeding.
6. Discuss Installment Options or Credit Card Payment for Upfront Costs
An increasing number of real estate agencies in Japan now accept credit card payments for initial costs. By choosing installment or revolving payment plans through your card issuer, you can spread expenses over several months.
Additionally, you may be able to negotiate a direct installment plan with the agency or property management company simply by asking:
“I’d like to inquire about paying the initial costs in installments—would that be possible?”
7. Scrutinize the Estimate to Eliminate Unnecessary Charges
Lease estimates often include vague or unexplained fees, such as “administrative charges” or “24-hour support fees.” Some of these may be negotiable or optional.
Key Items to Review:
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Key replacement fee (typically ¥10,000–¥20,000)
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Disinfection/deodorization fees (often optional add-ons)
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24-hour emergency support (confirm whether this is truly necessary)
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Contract administration fees (ensure there is no duplication of charges)
Always ask for clarification:
“Is this fee mandatory?” This simple question can help identify and eliminate unnecessary costs.
Maximize Savings Through Negotiation and Strategic Comparison
Initial move-in costs are not fixed figures—they can vary significantly depending on your choice of property, real estate agency, and how you approach the negotiation process. Rather than accepting an estimate at face value, ask:
“Why is this charge included?”
“Is there a way to reduce this?”
Even small adjustments can result in substantial savings—often amounting to tens of thousands of yen.
To begin your new life in Japan with greater financial confidence and ease, we encourage you to put these practical techniques into action.