Key money (礼金, reikin) is a non-refundable payment of 1–2 months’ rent made directly to the landlord when signing a Japanese lease. It is not a deposit — you get nothing back. Combined with security deposit (敷金), agency fee (仲介手数料), and guarantor insurance, move-in costs in Japan typically reach 4–6 months’ rent before you spend a yen on furniture. Key money has no legal requirement — many apartments, especially newer ones and UR housing, no longer charge it.
You found an apartment in Japan. Monthly rent: ¥80,000. You start calculating what you need to move in. Then an agent hands you a breakdown sheet.
Rent: ¥80,000
Security deposit (敷金): ¥160,000
Key money (礼金): ¥160,000
Agency fee (仲介手数料): ¥80,000
Guarantor insurance: ¥20,000
Lock replacement: ¥15,000
Total due before you move in: ¥435,000.
The key money entry is the one that makes foreigners stare at it the longest. What is this?
What Is Key Money?
Key money (礼金, reikin — literally “gratitude money”) is a one-time payment made to the landlord at the start of a lease. It is non-refundable. There is no service associated with it. It is simply a customary gift from tenant to landlord that has persisted in Japan since the post-WWII era.
The historical origin: after WWII, housing was severely scarce. Desperate tenants offered gifts to landlords to secure apartments. That custom became institutionalized as reikin and is still charged in many properties decades later.
How Much Is It?
Typically 1–2 months’ rent. On a ¥90,000/month apartment, that’s ¥90,000–180,000 gone immediately.
Amount by market:
| City | Typical Reikin |
|---|---|
| Tokyo | 1–2 months (common, sometimes 0) |
| Osaka | 0–1 months (less common than Tokyo) |
| Kyoto | 1–2 months (common in traditional areas) |
| Other cities | Often 0 months (increasing trend) |
Is Key Money Required by Law?
No. Japan has no law requiring key money. It is purely customary and negotiable in theory.
In practice, many landlords — especially in Tokyo — continue to charge it because it’s expected and because the market allows it. Newer buildings and large management companies are increasingly listing apartments without reikin, both because the market is competitive and because international tenants push back.
How to Find Apartments With No Key Money
UR Apartments (公団住宅)
Government-managed housing: zero key money, zero agency fee, zero guarantor required. UR is the most foreigner-friendly option for no-fee housing. Downsides: often older buildings, suburban locations, and higher income requirements.
Search: ur-net.go.jp
Village House
Private operator offering zero key money, zero deposit, zero agency fee across all 47 prefectures.
¥20,000台から — 礼金・敷金・手数料すべて無料: Village House は全国100,000室以上、外国人入居可の物件多数。
Filter by “礼金なし” (reikin nashi) on SUUMO / AtHome / Homes
Major real estate portals let you filter for zero key money. In 2025, a significant portion of Tokyo listings — especially in outer areas — have no reikin.
Share Houses
No key money, no reikin, no guarantor. Pay a small security deposit and move in. Useful as a short-term base while you search for a longer-term apartment.
What Else Is In Those Move-In Costs?
| Cost | Amount | Refundable? |
|---|---|---|
| Security deposit (敷金) | 1–2 months’ rent | Partial (minus cleaning/damage) |
| Key money (礼金) | 1–2 months’ rent | No |
| Agency fee (仲介手数料) | 0.5–1 month’s rent | No |
| Guarantor insurance | ¥10,000–30,000 | No |
| Fire insurance (火災保険) | ¥15,000–25,000/2yr | No |
| Lock replacement | ¥10,000–20,000 | No |
Total for a ¥100,000/month apartment with full fees: ¥450,000–700,000 before furniture.
Can You Negotiate Key Money?
Sometimes. Strategies that work:
- Ask directly if reikin can be waived — landlords with vacancies often agree
- Offer slightly higher rent in exchange for no reikin — some landlords prefer steady income
- Use a foreigner-specialist agency — they have experience pushing back on behalf of foreign clients
- Target newer buildings — developers increasingly drop reikin to compete with UR
The Trend: Reikin Is Declining
In 2010, over 70% of Tokyo apartment listings included reikin. By 2025, that number has dropped significantly. Young Japanese renters increasingly refuse to pay it, and international-facing properties routinely offer zero reikin as a competitive advantage.
If you’re renting in Japan in 2025 and being asked for reikin, you have more negotiating room than renters did a decade ago.
Moving to Japan soon? SafetyWing covers your health worldwide before your Japanese National Health Insurance kicks in — monthly subscription, no long-term commitment.