In short
Key money is a customary, non-refundable payment made to the landlord at signing — unlike the deposit, none of it comes back. In Tokyo it is typically 0–1 month's rent. Zero-key-money listings are increasingly common, but they sometimes come with a short-term cancellation penalty or slightly higher rent, so compare the whole package.
A payment with nothing attached to it
Key money — reikin, literally 'gratitude money' — is a customary payment made to the landlord when you sign. It buys you nothing specific: not a service, not a credit against rent, not a refundable balance. It is simply the price of entry to that apartment, and it is the line most first-time renters in Japan underestimate.
Key money vs. the security deposit
| Key money (reikin) | Deposit (shikikin) | |
|---|---|---|
| Who keeps it | The landlord | The landlord, held on your behalf |
| Returned? | Never | Yes, minus restoration costs |
| Typical amount | 0–2 months | 1–2 months |
Why zero-key-money listings keep growing
With more vacant units competing for tenants, many landlords would rather waive key money than leave an apartment empty for another month. So a listing with no key money isn't a red flag in itself — it usually just means the building is older, the location slightly less convenient, or the unit has been vacant for a while. Those are exactly the landlords with a reason to make you an offer.
Three things to check when key money is zero
- Short-term cancellation penalty: many zero-key-money contracts add a clause charging one month's rent if you leave within the first year — expensive if you're only staying briefly
- Rent level: what you saved up front may have been folded into the monthly rent, which costs you more the longer you stay
- Other line items: check the full quote for handling fees, room disinfection or support packages that have quietly appeared
If you want to negotiate, timing beats wording
Whether key money moves is the landlord's decision, and it tracks one thing above all: how long the unit has been empty. Japan's rental peak is January to March, when popular apartments are taken within days and nobody needs to negotiate with you. April to August is far quieter and far more flexible. Whichever season it is, ask through your agent before you submit the application — once an application is in, landlords rarely revisit the terms.
Read next
→What Does It Really Cost to Move Into an Apartment in Japan?→Do You Get Your Deposit Back in Japan? Where Restoration Costs Stop→Can You Break a Lease Early in Japan? Are There Penalties?ieree checks the key money, the cancellation clause and the rent level against comparable units before you apply, and asks the landlord on your behalf. Message us on LINE in English.