How to Save on Initial Rental Costs in Japan: A Guide for Foreign Residents

Moving to Japan and finding a place to live can be both exciting and challenging.
One of the first hurdles is the high initial costs that often come with renting an apartment, known as shoki hiyou (initial fees).

In this article, we’ll guide you through the various fees involved and offer some practical tips on how to reduce them.

 

Understanding Japan’s Rental Fees

When renting an apartment in Japan, you’ll typically encounter several fees that might be unfamiliar. Here’s a breakdown:

 

『 Shikikin (Deposit) 』

This is a refundable deposit used to cover any potential damages or unpaid rent. It’s usually equivalent to one to two months’ rent.

 

『 Reikin (Key Money) 』

A non-refundable fee paid to the landlord as a “thank you.” This can range from one to two months’ rent but can sometimes be negotiated.

 

『 Guarantor Fees 』

Many landlords require a guarantor, someone who agrees to cover your rent if you’re unable to. If you don’t have one, you’ll likely need to pay for a guarantor service.

 

『 Agent Fees 』

These are one-time fees paid to real estate agents for their services. It typically costs one month’s rent.

 

『 Other Costs 』

In addition to the above, there are also cleaning fees, insurance, and administrative fees that add to the total.

 

 

How to Lower Your Initial Costs

If you’re looking to cut down on these fees, here are a few strategies that could help:

 

『 Look for Apartments with No Key Money 』

Some landlords and real estate agencies, especially in more competitive areas, offer properties with no key money (reikin zero). This can save you one to two months’ rent upfront.

 

『 Use Rental Websites for Foreigners 』

Websites like GaijinPot and Real Estate Japan often list apartments tailored to foreign residents with simpler requirements and lower initial fees.

 

『 Negotiate with Landlords 』

If you’re staying long-term, try negotiating with the landlord to reduce or waive some fees. Some landlords might be more flexible if they know you’ll be a stable tenant.

 

『 Consider Short-Term or Monthly Apartments 』

If you’re not staying in Japan permanently, consider furnished monthly apartments, which often don’t require large upfront fees. Companies like LeoPalace21 offer foreigner-friendly options.

 

『 Sharehouses and Guesthouses 』

Another way to save on costs is by opting for a sharehouse or guesthouse. These often come with furnished rooms, and the upfront fees are significantly lower compared to regular apartments.

 

 

Budgeting for Life in Japan

Aside from the initial rental costs, living in Japan can be expensive. Here are a few budgeting tips to keep in mind:

 

『 Utilities 』

Gas, electricity, and water bills can vary depending on the season. Expect to pay around ¥10,000 to ¥15,000 per month.

 

『 Internet and Phone 』

High-speed internet can cost around ¥4,000 to ¥6,000 per month, and mobile phone bills can range from ¥3,000 to ¥10,000 depending on the plan.

 

『 Transportation 』

If you live in a major city like Tokyo or Osaka, public transportation is convenient but can add up. A monthly commuter pass (teiki) is recommended if you travel regularly.

 

 

Recommended Services for Foreign Residents

To make your move to Japan easier, here are some helpful services:

 

『 GaijinPot Housing 』

A rental platform catering to foreigners, with a variety of apartment options that require fewer upfront costs.

 

『 Sakura House 』

Known for offering sharehouses and guesthouses with low initial fees and a friendly international community.

 

『 LeoPalace21 』

Offers furnished monthly apartments with no deposit or key money, ideal for long-term stays.

 

 

Conclusion

Navigating Japan’s rental system may seem daunting, but by understanding the fees and taking advantage of cost-saving strategies, you can significantly reduce your initial expenses. Whether you’re staying for work or study, finding the right housing at a reasonable cost is the first step to enjoying your time in Japan.