Is It Possible to Negotiate the Brokerage Fee?
In Japan, when renting a property, tenants are typically required to pay a brokerage fee to the real estate agency assisting with the search and contract process. This fee is most commonly set at “one month’s rent plus consumption tax.”
Given that initial costs for moving can be substantial, it’s not unusual for prospective tenants to wonder, “Is the brokerage fee negotiable?”
The answer is yes—brokerage fees are one of the few rental costs in Japan with room for negotiation.
This article explains the structure and common pricing of brokerage fees, when and how to negotiate effectively, and practical strategies that may lead to a successful fee reduction.
What Is a Brokerage Fee?
A brokerage fee is the commission paid to a real estate agency for services such as property introduction, guidance of on-site viewing, and contract facilitation. It compensates the agency for mediating between the tenant and the landlord to finalize the lease agreement.
Under Japanese law (specifically the Real Estate Brokerage Act), the maximum allowable brokerage fee is capped at one month’s rent plus consumption tax. Importantly, this is an upper limit—not a mandatory amount. Tenants are not legally required to pay the full one-month fee.
How Much Do Tenants Actually Pay?
While some real estate agencies may offer promotions such as “no brokerage fee” or “half-price campaigns,” the majority of cases fall into one of the following categories:
| Pattern | Amount Paid | Remarks |
|---|---|---|
| ① One Month’s Rent + Consumption Tax | Approx. 110% | This is the most common arrangement |
| ② Half Month’s Rent + Consumption Tax | Approx. 55% | Often achievable through promotions or negotiation |
| ③ No Brokerage Fee | ¥0 | Typically offered on agency-owned properties or limited-time campaigns |
Is It Legally Acceptable to Negotiate the Brokerage Fee?
Absolutely. A brokerage fee is a form of compensation for services rendered, and as such, tenants—as consumers—are fully entitled to negotiate the amount if they feel it does not align with the value provided.
While real estate agencies are under no obligation to accept a reduced fee, Japanese law clearly states that the commission must be determined through mutual agreement between both parties. Therefore, fee negotiation is entirely legal and considered a fair and valid practice.
Negotiation Technique 1: Check if the Same Property Is Listed by Other Agencies
In Japan, it is common for the same rental property to be handled by multiple real estate agencies. In such cases, you can either select the agency offering the lowest commission or use competing estimates to your advantage during negotiation.
Example:
“I was quoted a full month’s fee by Agency A, but Agency B mentioned they only charge half. Would it be possible to match that offer?”
Negotiation Technique 2: Confirm If You Are the Sole Client of the Brokerage
According to Japanese real estate law, the brokerage fee cap is typically set at 0.5 months’ rent from both the landlord and the tenant, totaling one month. However, in practice, many agencies request the full amount from the tenant alone.
It is advisable to ask:
“Is this agency also receiving a commission from the landlord?”
If so, you can reasonably negotiate:
“In that case, could the tenant’s portion be reduced to 0.5 months?”
Negotiation Technique 3: Choose the Right Timing to Negotiate
The most effective time to initiate fee negotiations is before submitting your application. Once the paperwork is in motion, it becomes more difficult to amend terms, as the agency may claim the process is already underway.
If you find a property you like after viewing, consider saying:
“I’m very interested in proceeding under these terms—would it be possible to reconsider the brokerage fee before we move forward?”
Negotiation Technique 4: Check for Campaigns or Special Offers
Some real estate agencies periodically run limited-time promotions, such as “No Brokerage Fee Campaigns” or “Moving Support Incentives.”
Before negotiating, it’s worth browsing the agency’s website or inquiring directly at the office. Even if no campaign is currently advertised, you can politely ask:
“I’m hoping to reduce my upfront costs—are there any current promotions or incentives available?”
Negotiation Technique 5: Indicate That You Are Considering Multiple Properties
Negotiation becomes more difficult if you appear solely focused on a single property. However, if you convey that you are evaluating several options, it can create a sense of competition. Real estate agents may be more inclined to make flexible offers to secure your commitment.
Example: “I’m also looking at a few other properties, but I’m very interested in this one. If the terms are favorable, I’d be happy to move forward here.”
Situations Where Fee Negotiation May Be Difficult
Not all properties or agencies are open to fee negotiations. In particular, the following situations tend to offer limited flexibility:
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Company-owned or internally managed properties, where pricing structures are often non-negotiable
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Agencies that also serve as the property manager, resulting in fixed fee policies
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Agencies receiving no commission from the landlord, thus relying entirely on the tenant’s payment for compensation
Consider Alternatives If Fee Reduction Is Not Feasible
Even if lowering the brokerage fee is not an option, there may still be opportunities to negotiate other aspects of the initial cost structure. For example:
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Waiving or reducing key replacement fees
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Allowing the tenant to use an external fire insurance provider
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Requesting a rent-free period (free rent) at the start of the lease
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Asking for installment options for upfront expenses
Negotiation Is Not Inappropriate—It’s a Reasonable Step
Brokerage fees in Japan are capped by law, but tenants are free to question or negotiate the amount, provided the discussion is conducted respectfully. When approached correctly, negotiations rarely damage the relationship between tenant and agency.
The key is to remain calm and professional, and to express that you are considering multiple options rather than making demands.
Moving can involve significant expenses. A single negotiation could save tens of thousands of yen—making it well worth taking that extra step, without hesitation.