Key Money in Japan (Reikin): What It Is and How to Avoid It

Key money in Japan is called reikin, written 礼金. It is a one-time payment made at the beginning of some residential rental contracts, separate from rent, deposit, insurance, brokerage and guarantor costs. The important point is that reikin is not a security deposit and is not returned when you move out. Tokyo’s official intercultural portal describes key money as a gratuity-style payment that is commonly expressed as one to two months of rent, while also noting that some lodgings require neither key money nor a deposit. For a renter, the practical question is not whether reikin is traditional, but whether the total move-in cost is worth the property. A zero-key-money listing can still be expensive if rent, guarantee fees or fixed cleaning clauses are higher, so compare the full written quote before applying.

This guide applies to anyone considering a private rental apartment, mansion, house or room in Japan, especially foreign residents who are seeing reikin for the first time. It is relevant to employees relocating to Tokyo or Osaka, students signing their first lease, digital workers moving from monthly housing to a standard contract, and families comparing properties across several agents. It also matters to renters who have enough monthly income but limited cash for upfront costs. If you are applying for UR rental housing, a share house, serviced apartment or employer-arranged housing, the same vocabulary helps you compare offers, even when the fee structure is different from a normal private lease.

Reikin is usually shown on Japanese listings as 礼金 followed by a number of months, such as 0, 1 or 2. That number is multiplied by the monthly rent, not by management fees unless the quote says otherwise. It is paid around contract signing with the other move-in costs. Because it is not held as security, it does not offset unpaid rent, repairs or cleaning at move-out. The safest way to read a quote is to separate refundable money, non-refundable money and monthly recurring money. The table below shows the usual distinction renters should confirm before signing.

Start by setting your search filters to 礼金なし, reikin 0, no key money or zero key money before you fall in love with one apartment. Next, ask the agent for a full initial-cost estimate, not just rent and deposit, and compare properties by the total cash needed before move-in. Third, check whether a similar unit in the same building or neighborhood has lower reikin; landlords often price units differently depending on vacancy pressure. Fourth, ask politely whether the landlord will reduce reikin if you can move in quickly, accept a slightly earlier rent-start date or sign during a slower season. Fifth, consider UR rental housing, which the official UR site presents as having no key money, no brokerage fee, no renewal fee and no guarantor requirement. Finally, get the final fee schedule in writing before paying application money. If the listing says zero reikin but the contract adds a separate non-refundable fee, pause and ask exactly what it covers.

There is no single nationwide rule forcing every private landlord to charge reikin, so avoidance is mainly a search and negotiation issue. Look for no-key-money listings, UR apartments, company housing, share houses and monthly rentals if cash preservation is more important than having a conventional long-term lease. Do not focus only on the words “no key money,” because a high rent, mandatory support fee, high guarantee fee or fixed cleaning clause can cancel out the saving. Confirm whether a shikibiki or other non-refundable restoration fee exists, because it can behave like a separate upfront loss even when reikin is zero. Keep screenshots of the listing and the written estimate so you can challenge inconsistent charges before signing.

For ordinary negotiation, use your licensed real estate agent and ask for a bilingual written estimate if your Japanese is limited. For consumer-contract trouble after a payment or misleading explanation, the Consumer Affairs Agency lists the Consumer Hotline 188 in Japanese, and the National Consumer Affairs Center lists a tourist hotline for overseas visitors. For legal questions about deposits, deductions or contract wording, Houterasu provides English housing information and can direct people toward appropriate legal support channels.