In short
Expect 4–6 months' rent up front. On a real quote for a ¥230,000/month apartment in Setagaya, Tokyo, the total came to ¥1,023,566 — about 4.45 months' rent. The two lines that surprise foreign tenants most are key money (never refunded) and advance rent (you pay next month's rent before you move in).
Budget 4–6 months' rent
In Japan, everything you pay when you sign a lease is grouped under one term: shoki hiyō, the initial costs. The rule of thumb is 4–6 months' rent. If you're used to markets where moving in means a deposit plus the first month's rent, that estimate will fall badly short — and the gap comes from two lines most countries don't have: key money and advance rent.
What the initial costs are made of
| Item | Typical amount | Refundable? |
|---|---|---|
| Key money (reikin) | 0–2 months' rent | No, never |
| Security deposit (shikikin) | 1–2 months' rent | Partly, after restoration costs |
| Agency fee (chūkai tesūryō) | 0–1 month + 10% tax | No |
| Guarantee company, initial fee | 50–100% of one month's rent | No |
| Advance rent (maeyachin) | Prorated first month + next full month | It is rent, so it's used |
| Fire insurance (2 years) | ¥15,000–20,000 | No |
| Lock change (kagi kōkan) | ¥15,000–25,000 | No |
A real quote: Setagaya, Tokyo — ¥230,000 per month
Below is an actual estimate for a 2LDK in Setagaya City, Tokyo: rent ¥230,000, deposit one month, key money one month, with the lease starting on 15 September.
| Line item | Amount (JPY) |
|---|---|
| Prorated rent (15–30 Sept, 16 days) | 122,666 |
| Next month's rent (October) | 230,000 |
| Security deposit (1 month) | 230,000 |
| Key money (1 month) | 230,000 |
| Guarantee company, initial fee (50% of rent) | 115,000 |
| Fire insurance (2 years) | 20,000 |
| Agency fee (0.3 months + tax) | 75,900 |
| Total | 1,023,566 |
That's ¥1,023,566, or 4.45 months' rent, with the lock change (roughly ¥22,000–33,000) still to be added. Note the agency fee on this quote: 0.3 months plus tax. At the more common 'one month plus tax' it would have been ¥253,000 — the same apartment, ¥177,100 more expensive to move into.
The three things people get wrong
- Key money is gone the moment you pay it. The deposit is settled and partly returned when you leave; key money is not, however long you stay.
- Advance rent means paying into next month before you move in. Sign mid-month and you owe the prorated days plus the whole following month at once.
- The deposit rarely comes back in full. Cleaning and restoration costs are deducted at move-out, and many contracts fix a cleaning fee in advance.
Where you can actually save
- Choose properties advertised with zero key money or zero deposit — but check whether a short-term cancellation penalty comes with them
- Look for a free-rent period, where the first month or two of rent is waived
- Avoid January to March; landlords have far less reason to negotiate in peak season
- Choose an agency that charges 0–0.3 months instead of a full month
- Go through the quote and ask which add-ons (disinfection, deodorizing, 24-hour support) can be removed
How and when you pay
Move-in costs are normally transferred to a designated account within a few days of your application being approved. Instalments and card payments exist but are rare. If you're still overseas, factor in how long an international transfer takes to clear, and ask the agency early how they want to be paid if you don't yet have a Japanese bank account — this is the step that most often makes a signing date slip.
Read next
→What Is Key Money (Reikin) in Japan? Why You Never Get It Back→Do You Get Your Deposit Back in Japan? Where Restoration Costs Stop→How Much Can an Agency Legally Charge in Japan? One Month Isn't the Rule→Empty Means Empty: What You Still Have to Buy Before You Move In→What Is a Guarantor Company in Japan? Guarantee Fees & Tips for Foreignersieree sends you an itemized estimate in English before you view a property, and tells you which lines are required and which are optional — no charges appearing after you've signed. Find the place yourself and our brokerage fee starts at ¥0. Ask us anything on LINE.