Initial Move-In Costs When Renting in Japan: Deposit, Key Money and the Guarantor System, Explained

The short answer

Expect four line items on move-in day in Japan: shikikin (敷金, a refundable deposit), reikin (礼金, non-refundable key money — not universal), an agency fee, and a guarantor company fee — commonly totalling several months' rent upfront. Our renting overview is the map; this piece goes deeper into the mechanics — how deposit deductions are actually decided (and legally limited), how guarantor-company underwriting works, and how to check a guarantor company is legitimate.

Deposit (shikikin, 敷金) — what it actually protects, by law

Japan's Civil Code (Article 621) excludes "ordinary use and aging" (通常の使用及び収益によって生じた損耗並びに経年変化) from a tenant's restoration obligation — that cost is understood to already be built into the rent you pay every month, and is the landlord's to bear, not deductible from your deposit. MLIT's own guideline, "原状回復をめぐるトラブルとガイドライン" (first issued 1998, revised 2011), sets out item by item which damage is the tenant's responsibility (negligence or misuse — a cigarette burn, a hole from over-hanging a heavy shelf) and which is the landlord's (sun-fading of wallpaper, ordinary carpet wear, general appliance aging) — and it explicitly recognises that a tenant's liability share should shrink the longer they've lived there, since more of a fixture's wear is simply age.

This is exactly where shikikin disputes happen in practice — deposit-and-restoration disagreements are a recurring category of complaint at Japan's consumer-affairs centres. The practical defence is boring but effective: photograph the unit at move-in, keep the itemised move-out statement, and push back — citing the guideline — on any deduction that reads like ordinary wear.

Key money (reikin, 礼金) — a custom, not a law

Unlike the deposit, key money has no restitution mechanism and no legal basis requiring it — it is a regional custom, a non-refundable payment to the landlord baked into many (not all) contracts. Zero-key-money ("reikin nashi") listings have become common, especially outside central Tokyo and in buildings that are easier to fill — but its absence is a market choice by that particular landlord, not a legal entitlement, so don't assume it into every listing.

The guarantor company system — how the underwriting works

Most landlords now require a guarantor, and the default modern answer is a paid guarantor company (保証会社) rather than a Japanese relative. Mechanically: the company underwrites you (income, employment stability, sometimes a phone or video interview), charges an upfront fee (commonly a fraction of monthly rent, plus often a smaller annual renewal fee for as long as you stay), and in exchange stands behind your rent if you fall behind — it pays the landlord, then pursues you directly for repayment. This is a real financial relationship, not a formality: a missed payment against a guarantor company sits in that company's own records and can make your next rental harder, separate from your general personal credit history.

Registration with MLIT's 家賃債務保証業者登録制度 (rent-guarantee business operator registration system) is voluntary, not mandatory — a company can legally operate without registering. Being on the official registered list is a reasonable, if partial, signal that a company meets baseline requirements (minimum net assets, compliance training, no organised-crime involvement) — it is not a guarantee of good service, and plenty of legitimate companies simply haven't registered. If a company or its terms feel off, checking that list — and asking your agency directly which guarantor company they use and why — is a fair question to ask before you sign.

Agency fee

Separate from the guarantor company fee, the agency handling the listing typically charges its own fee, commonly around one month's rent plus consumption tax, capped by the same brokerage-commission rules that govern real estate sales agents — ask for the itemised fee sheet before you commit to a specific unit, not after.

What to ask for, in writing, before contract day

• A full itemised move-in cost sheet (not just "first month's rent") before you agree to view further or apply.
• Which items are refundable (deposit, minus fair deductions) versus not (key money, agency fee, guarantor company's initial fee).
• The guarantor company's name, and whether it is on MLIT's registered list.
• Move-in condition documentation (photos, a written checklist) that you both sign.

This explains general practice as of 2026-07-15 and is not legal advice. Deposit and restoration disputes turn on the specific contract and condition of the unit; if you are in a dispute, MLIT's guideline and your local consumer-affairs centre are the right starting points, not a general article.