Unique Costs in Japan and the Difference Between Refundable & Non-Refundable Fees

In Japan, rental contracts often include unique fees such as shikikin (deposit), reikin (key money), and koushinryo (renewal fee).
Understanding the difference between refundable and non-refundable payments will help you avoid unexpected costs and confusion.
This article explains these fees in simple terms for foreign residents.


💡 What is “Shikikin”?

“Shikikin” is asecurity depositpaid to the landlord to cover any repair or cleaning costs when you move out.
If the apartment is kept in good condition, you can receivea partial or full refund.

Examples when it may not be refunded:

  • Large holes or stains on walls
  • Smoking damage or strong odors
  • Intentional or careless damage

💰What is “Reikin”?

“Reikin” is non-refundable key money paid to the landlord as a traditional gesture of gratitude.
It usually costs 1‒2 monthsʼ rent. Nowadays, many “foreigner-friendly” properties have no key money required.

🔄What is “Koushinryo”?

“Koushinryo” is a renewal fee paid when extending a lease, typically every two years. The amount is usually equivalent to one monthʼs rent.が必要になります。

💸 Other Common Initial Costs

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ItemMeaningRefundableNotes
Agent FeeCommission to real estate agencyUsually one monthʼs rent
Guarantor FeeRent guarantee serviceRequired for most foreigners
Fire InsuranceDamage/fire insuranceOften mandatory
Prepaid RentRent for the first monthMay be refunded if canceled early

🧭 Summary

Itʼs important to know which fees are refundable and which are not before signing your contract.
Always confirm with your real estate agent and get everything in writing to avoid misunderstandings.

🤝Ieyasu Real Estate Customer Support

At Ieyasu Real Estate, our bilingual staff (English & Japanese) provide guidance on lease renewal and move-out procedures for clients who have rented through us. We aim to make the process simple and clear for foreign residents unfamiliar with Japanʼs rental rules. This support is available only for clients who have rented through Ieyasu Real Estate.

⭕Let’s Talk!