Deposit and Key money
1.Meaning of Shiki-kin
Deposit is paid to the owner in case of any damages or problems to be caused in the future.
The deposit is refundable but if there are any damages or overdue rent payment, it will be deducted from the deposit. In general, the tenants are responsible for the house cleaning and restoration when leaving, therefore the deduction of the deposit is usually unavoidable.
The cost of the deposit is generally two months of the rent. It is paid in the time of the contract.
Tips on lessening the deduction of the deposit
- No smoking
- Regular cleaning
- Making no holes using screw, nail, thumbtack
- Making no damages on wall and floor
- Regular cleaning especially in the kitchen (oil)
It is the regulation for the tenants to be responsible for any damages caused in the room.
2.Meaning of Rei-kin
Key money is paid to the owner when you sign the contact.
Key money is not refundable. In general the amount of key money is one to two months of the rent.
This is also paid when making the contract.
3.Another initial cost
In general the tenants must pay to join the fire insurance in case of earthquake and disasters. The amount is about JPY 15,000 to 30,000. It is paid when signing the contract.
Payment to the real estate agent for introducing the apartment is made when signing the contract. One month rent is paid to the agent.
・Advanced Payment for the Rent
In general, the rent is paid in advanced, therefore it will be paid when signing the contract. If the move-in date is in the midway of the month, the payment for the remaining days of the month and also the following month will be paid in advance.
・Key Exchange Fee
This may vary accordingly to the owner. This is to avoid troubles of the past tenants making the copy of the key. Therefore, key exchange fee may be asked to pay accordingly.
It’s depend on the key. It is about JPY 10,000 to 20,000yen on average.