Renting in Tokyo: key money, guarantor companies and the real move-in bill

Back home, you'd hand over first month's rent and a deposit. In Tokyo, the bill comes with line items Americans have never heard of, including a cash "thank you" to the landlord you never get back.

The short version

• Shikikin is a refundable deposit; reikin (key money) is a non-refundable payment to the landlord [1].
• On Tokyo-area listings in 2025, about four in ten had no key money, and where key money is charged, about one month's rent is the norm. Deposits, where charged, averaged a little over one month [2].
• The real estate agency fee is capped by law at 1.1 months' rent including tax, and only 0.55 months can come from you unless you agreed to more up front [3][4].
• Most leases now require a guarantor company. Many charge about half a month's rent up front plus a yearly renewal fee, according to a 2016 government survey [5].
• UR public rental housing skips key money, agency fees, renewal fees and the guarantor, in exchange for a two-month deposit and an income test [6].

USD conversions use the Federal Reserve H.10 rate of October 30, 2026 (USD 1 = JPY 157.47), rounded.

Every line on the move-in bill

Here's what shows up on a typical Tokyo estimate (the "mitsumori") from an agency. Not every apartment charges every item.

Shikikin: the deposit

The Tokyo Metropolitan Government defines the deposit as money that can cover unpaid rent, damage you cause and your share of restoration costs, and says the landlord must return it at the end of the lease if you haven't broken its terms [1]. How much comes back depends on your contract [1].

Reikin: key money

Key money is a one-time, non-refundable payment from tenant to landlord when the lease is signed [1]. It's also losing ground. A LIFULL HOME'S analysis of listings in Tokyo and the three neighboring prefectures, reported in November 2025, found key-money-free listings were just under 40% overall and over 42% for apartments renting at ¥200,000 or more a month [2]. Where key money is charged, about one month's rent has become the standard [2].

Deposits are shrinking too

The same analysis found that 63.3% of listings under ¥100,000 a month asked no deposit in 2025, up from 53.2% in 2023 [2]. Where a deposit was charged, it averaged roughly 1.03 to 1.10 months' rent across price bands [2]. Zero-deposit apartments sound great, but read the lease for a fixed cleaning fee at move-out or other charges that take the deposit's place.

The agency fee is capped by law

This is the one cost the law clearly limits, and it's where newcomers overpay. Under rules set by the Ministry of Land, Infrastructure, Transport and Tourism, a broker can collect at most 1.1 months' rent in total from landlord and tenant combined for a residential lease (that's one month plus 10% consumption tax) [4]. From either side alone, the cap is 0.55 months, unless that party agreed to pay more when it asked the agency to broker the deal [3][4].

In practice, many Tokyo agencies ask the tenant for the full 1.1 months and have you sign consent. That's legal if you agreed, but you don't have to agree, and it's fair game to ask for less before you sign anything. The Tokyo Metropolitan Government, announcing penalties against five brokers in March 2026, told renters to check the fee in advance [3].

Guarantor companies: Japan's version of a co-signer

Traditionally, Japanese landlords wanted a personal guarantor, usually a relative in Japan, who'd be on the hook if you didn't pay. Most Americans don't have one, and most landlords now accept or require a rent guarantee company (yachin saimu hosho gaisha) instead.

A 2016 report from the Ministry of Land, Infrastructure, Transport and Tourism found about 60% of rentals used one [5]. It also found that many companies charged 50% of the first month's rent at signing and then ¥10,000 a year after that, though some charged more or used a percentage of rent [5]. That survey is ten years old, so treat it as a ballpark and get the exact plan in writing.

What to expect as an American:

1. A screening. The guarantor company reviews your income and job, much like a US tenant screening. Your FICO score doesn't count here.
2. An emergency contact. Many companies want a contact in Japan, often a coworker or employer.
3. Some specialize in foreigners. GTN (Global Trust Networks), for example, is a company built around supporting foreign residents in Japan, with rent guarantees among its services and English guides to apartment-hunting [7].

Fire insurance, lock changes and the rest

Fire insurance (kasai hoken) is almost always required. It's really a renter's policy covering your belongings and your liability to the landlord. The agency will offer one; you can ask if you're allowed to pick your own.

Key exchange. Tokyo's guidelines say changing the lock is the landlord's job when the previous tenant didn't damage or lose the key [1]. In practice, many leases charge the incoming tenant for a new lock as a security measure. It's worth asking to have it waived or confirming that the old lock really is being changed.

Moving out. Normal wear and tear from ordinary use is the landlord's responsibility, not yours [1]. You pay for scratches and other damage you cause, and "restoring to original condition" does not mean returning the apartment to how it looked on move-in day [1]. Take dated photos on day one, the same walk-through you'd do in the States.

Renewal fees. Many Tokyo leases charge a renewal fee (koshinryo) when the lease term rolls over [1]. Neither the term nor the amount is set by law, so check both in the contract before you sign.

A worked example

Here's a hypothetical ¥150,000-a-month apartment (about USD 950) with one month's deposit and one month's key money, the full legal agency fee and a guarantor company charging half a month:

Add fire insurance, a lock change, prorated rent and any cleaning fee, and the total climbs from there. That's 4.6 months' rent before extras, versus the first-and-deposit you'd pay in most US cities. Find a no-key-money, no-deposit place and you can cut nearly ¥300,000 (about USD 1,900).

UR housing: the no-key-money option

UR (Urban Renaissance Agency), a public housing corporation, rents apartments with no key money, no agency fee, no renewal fee and no guarantor [6]. You pay a deposit of two months' rent plus prorated rent [6]. The catch is an income test: UR's own example sets the standard at four times the monthly rent, so ¥60,000 rent needs about ¥240,000 a month in income, with alternatives such as paying rent in advance or showing savings [6]. Foreign residents can apply if they meet UR's requirements [6]. UR's English brochure is from September 2022, so check the current rules.

Where to get help

The Tokyo Metropolitan Government runs a rental housing hotline and a Foreign Residents' Advisory Center with English help on weekdays [1]. Tokyo's tenant-landlord guidelines are advisory, not binding, and the city can't overrule your contract, so read before you sign [1]. And before you wire a deposit to anyone, ask in our community group for Americans in Japan whether the agency has a good track record.

Sources

1. Tokyo Metropolitan Government: Ordinance and Guidelines for Preventing Tenant-Landlord Disputes (English, December 2019)
2. @DIME: LIFULL HOME'S analysis of deposits and key money in the Tokyo area (November 29, 2025, Japanese)
3. Tokyo Metropolitan Government: Administrative penalties against real estate brokers and fee caps (March 11, 2026, Japanese)
4. MLIT: Review of brokerage fee rules (2024, Japanese, PDF)
5. MLIT Housing Bureau: Current status of rent guarantees (October 2016, Japanese, PDF)
6. UR Rental Housing: English guide (PDF, information as of September 2022)
7. GTN Magazine: Finding housing in Japan, a guide for foreign residents

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