Vol. 01 What are the Initial Costs to Rent your Living Space?

The start of a new life begins with finding your own place.
How much is the total initial cost to go off and live on your own?

What does the money paid towards the initial costs cover?
First, let's grasp the breakdown of the first payment and get to know the real estate standards for a new move.

Renter Application Fee (moshikomiryo)

Sometimes it is necessary to secure the right to borrow the room. This is paid before the conclusion of the contract and move-in and becomes part of the guarantor fee or the security deposit.

Security Deposit (shikikin)

The security deposit is paid to the owner at the conclusion of signing the contract.
This amount is usually equal to 1 to 3 months of the rent.

Although it is refunded at the termination of the lease, it may be used in part or full to cover costs to fix a dirty or damaged room or any other type of negligence in the unit. Make sure to confirm this information at the time of moving out.

Key Money (reikin)

Key money or reikin is a gratuity fee you pay to your landlord.

Whether at the end or in the middle of the contract you decide to terminate the lease, the key money does not come back.

Maintenance Fee (kyoekihi)

This fee covers the expenses for the maintenance and upkeep of the building or buildings.
It must be paid every month in addition to rent.
If you see (込) or (komi) this means it is included in the monthly rent.
It is also possible that this fee is not necessary.

Agent Fee (chuukai tesuuryo)

When the contract has been established, the tenant agrees to pay the real estate agency for introducing the room.

It is usually one-month's rent plus consumption tax.

Insurance (hoken)

Depending on the type of insurance fee being paid, compensation may be able to be received in the case of fire, lightning, explosion, wind or snow damage. This fee is usually paid once a year.

Pre-paying Rent (maeyachin)

This is the rent for the current month paid by the tenant at the time of signing the contract.

In general, when moving into a place in the middle of the month, a pro-rated fee is paid, but if it is near the end of the month then the pro-rated fee is paid together with the rent for the next month.