1. Deposit

Deposit is paid to the landlord as insurance in unpredictable cases and it will be used to cover delayed rent, damage repairs, and so on.

The deposit is supposed to be returned to the tenant at the end of the contract, however, if there is any damage beyond normal wear-and-tear, the balance will be returned to the tenant after the restoration fee is deducted. In most cases, the tenant shall be responsible for the basic cleaning fee, so it is unlikely to receive back the deposit in full amount. It is recommended that tenants use the apartment neatly so there will be less to pay, and more amount returning when moving out.

Deposit is usually equal to 1 to 2 months of rent in the Tokyo metropolitan area. It is paid at the time of signing the contract. Here are some things you need to be careful to get more deposit back at the end of the contract:

• Do not smoke indoors.
• Clean the room regularly.
• Do not use pins or nails to hang things on the wall.
• Do not damage the floor or the walls.
• Remove the oil stains in the kitchen frequently.

Any other damages and stains that require extra repair may be charged upon moving out. Please make sure to use the room neatly.

2. Key Money

Key money is paid to the landlord as a gratuity fee.

Some areas in Japan call it differently, and some do not require the key money.

This fee will not be returned at the end of the contract.

Key money is usually equal to 1 to 2 months of rent, and it is paid at the time of siging the contract.

3. Other initial fees

• Fire insurance fee

This is insurance for natural disasters, and most tenants are required to subcribe. It is usually 15,000-30,000 Yen. It is paid at the time of the contract.

• Real estate commission fee

This fee is paid to the real estate agency as a service charge. Legally, the real estate agents can only charge for 1-month rent worth of commission fee. Therefore most agents ask for 1 month's worth of rent as a commission fee (tax charged seperately).

• Rent in Advance

In Japan, rent is paid in advance. Therefore, the first month's rent is required to be paid at the time of the contract. If the lease begins in the middle of a month, the first month's rent will be prorated. In this case, most tenants are asked to pay the rents of the first and second month at the time of the contract.

• Lock change fee

Some landlords ask for a lock change fee, to change the locks of the doors between contracts. This is to prevent any crimes from occurring in case the previous tenant made copies of the old key. In some cases, this fee is not mandatory. The fee is usually around 10,000-30,000 Yen (tax charged seperately).

• Guarantor service fee

Guarantor company acts as a rental guarantor and is an alternative to having a joint guarantor (family). Using a guarantor company helps you rent an apartment without a joint guarantor. The guarantor company requires an initial service fee that in most cases amounts to the 50% ~ 100% of the monthly expense for the apartment: the rent + the maintenance fee + parking lot fee and this fee is paid 1 time at the time of the contract. Depending on the type of plan, 10,000 Yen annual fee may be charged from the second year, a monthly fee of 1,000-2,000 Yen will be charged in addition to your rent, or 1-3% of the monthly rent will be charged.

• 24 Hour support fee

The 24 Hour support is a service to support the tenants in case of facility failures. It is usually 15,000-20,000 Yen for 2 years or 500-1,500 Yen monthly.