Key Money (Reikin) in Japan: What Foreign Renters Should Know

If you are renting an apartment in Japan, you may encounter key money (礼金 – reikin). This traditional, non-refundable fee can add significantly to your move-in costs, so it’s important to understand what it is, how much it costs, and how to avoid or negotiate it.

What Is Key Money?

Key money is a non-refundable payment to the landlord when you move in. Historically, it was considered a “thank you” for letting you live in the apartment. Today, it functions as an upfront cost of renting, separate from deposits or other fees.

Even if you leave the apartment in perfect condition, key money is never returned.

Is Key Money Legal?

Yes. Key money is legal in Japan. However:

• It must be listed in the rental contract before signing

• Landlords cannot charge it afterward if it’s not in the contract

How Much Is Key Money?

Typically:

• 0 to 2 months of rent

• Most common: 1 month of rent

Factors affecting the amount:

• Location (city vs suburb)

• Age of the building

• Demand in the area

• Landlord preference

Examples:

Many modern listings now advertise “礼金なし / reikin nashi”, meaning no key money.

Key Money vs Deposit

Important: Key money is never refundable, unlike the deposit.

Why Does Key Money Still Exist?

Key money persists due to:

• Traditional rental customs

• High demand in popular cities

• Landlord preference

• Market competition

In some competitive areas, landlords offer “no key money” incentives to attract tenants.

Can You Avoid Paying Key Money?

Yes! Ways to reduce or eliminate key money:

• Look for “reikin nashi” listings

• Choose newer buildings or managed apartments

• Rent in suburban or less competitive areas

• Use foreigner-friendly real estate agencies

• Check for promotional campaigns

Is Key Money Negotiable?

Sometimes. Negotiation may succeed if:

• The apartment has been vacant for a long time

• You sign a longer lease

• You apply during off-season (summer or winter)

• The landlord is flexible

Real estate agents can often negotiate on your behalf.

Tips for Foreign Renters

• Confirm all fees before signing

• Ask for a full breakdown of costs

• Make sure key money is clearly written in the contract

• Avoid relying on verbal agreements

Understanding upfront costs prevents unexpected expenses and makes renting smoother.

Summary

Key money (reikin – 礼金) is a traditional, non-refundable fee charged when renting apartments in Japan. While still common, it is no longer universal, especially in newer or foreigner-friendly listings.

By searching carefully, negotiating when possible, and using specialized agencies, foreign renters can often find apartments without key money, reducing move-in costs significantly.