Deposit, Key Money & Agency Fee: The 3 Costs That Decide Your Move-In Budget

By Ibuki — Affarah Friendly Homes · 2026-01-15

Deposit, Key Money & Agency Fee: The 3 Costs That Decide Your Move-In Budget

Most people don’t lose money renting in Japan because they chose the “wrong” apartment. They lose money because they didn’t understand the fee package until it was too late.

When you rent here, the upfront bill often includes several items on top of rent. Japan’s Ministry of Foreign Affairs even warns that when you add the contract fees together, the total can be equivalent to 5 to 6 months’ rent. (Source: Japan MOFA, “Guide to Living in Japan”)

That sounds scary, but it’s also good news: the fee package is predictable. Once you understand the three biggest items, you can compare apartments clearly and filter listings that don’t match your budget.

1) First, the mental model: “refundable”, “gone”, and “paid early”

Before we talk about each fee, you need the right mental model. Otherwise, everything feels like a scam.

Some money is refundable-ish (deposit). Some money is gone (key money and most fees). Some money is just rent paid early (first month or prorated rent).

The problem is that all three are presented together on the estimate sheet. When you’re stressed and trying to secure a room quickly, it’s easy to treat every line item as equally painful. It’s not.

If you only remember one thing: key money is pure cost, deposit is risk money, and agency fee is service money with a legal ceiling.

2) Deposit (敷金 / Shikikin): what it is and how you actually get it back

A deposit is money you give the landlord at signing to cover risk—unpaid rent, damage, and move-out restoration costs. People often assume it’s automatically refunded, but that’s not how it feels in real life.

What usually happens is simpler: you move out, the landlord calculates what needs to be repaired or cleaned, and the deposit comes back minus those costs. Japan’s MLIT explains this plainly: the landlord returns the deposit minus repair costs, and if repairs exceed the deposit, the tenant pays the difference. (Source: MLIT “Easy-to-follow Guide”)

This is why “deposit amount” matters less than “deposit rules.” Two apartments can both be “1 month deposit,” but one building may deduct a lot more at move-out because of cleaning policies or how they interpret restoration.

Deposit questions to ask (every time)

What exactly can be deducted from the deposit?
Is there a fixed cleaning fee? If yes, is it deducted from the deposit or charged separately?
How do they handle normal wear versus tenant-caused damage?

Info byte
Deposits create the most disputes because the pain happens at the end, when you just want to leave. The fix is simple: get the rules in writing, and document condition at move-in.

3) Key money (礼金 / Reikin): why it exists and when you should avoid it

Key money is not a deposit. It’s basically a gratuity to the landlord for accepting you. It’s usually non-refundable, and it often ranges around 1–2 months’ rent depending on the listing and market conditions. (Source: Japan MOFA, “Guide to Living in Japan”)

The reason it still exists is cultural and historical. But in practical terms, you should treat it as a pure cost of choosing that particular apartment. It does not “protect” you. It does not “reduce” your deposit. It does not come back later.

So the decision is simple: if a listing has key money, ask yourself if the apartment is worth paying that extra price just to start living there.

When paying key money can make sense

If you found a rare apartment that matches your needs perfectly—location, layout, commute, approvals—and you want to stop searching, paying reikin can be a rational trade.

When you should filter it out

If your budget is tight, key money is the first thing you should try to eliminate. Many listings are 礼金0, and removing key money is one of the fastest ways to reduce upfront cost without changing your lifestyle.

4) Agency fee (仲介手数料): what you’re paying for (and the legal cap)

The agency/brokerage fee is the agent’s compensation for arranging the lease: coordinating viewings, handling the application, negotiating terms, preparing documents, and moving the contract to completion.

In Japan, this fee has a legal framework. MLIT’s consumer guidance explains that there is an upper limit for brokerage fees in rental transactions (and there are “principle” cases and special cases). In practice for standard residential rentals, you’ll often see up to one month’s rent + tax as the headline number.

Here’s the part most people miss: MLIT’s consultation case examples explain that for residential leases, a broker can receive up to 0.55 months’ rent from each side (landlord and tenant), and if they want to collect more than 0.55 months from one side, they need that client’s prior consent—while keeping the total within 1.1 months. (Source: MLIT casebook)

This is why you sometimes see “0.5 month fee” listings, and why “1.1 months” can be legal if the consent conditions are satisfied.

Agency fee questions to ask (so it stays clean)

What is the agency fee amount, and is tax included?
Is any portion paid by the landlord?
Where exactly did I “consent” to this amount (application form / mediation agreement / estimate sheet)?

Info byte
If the agent cannot explain the fee structure clearly, don’t argue—just slow down. Confusion now becomes conflict later.

5) Example: same rent, different reality

Let’s say rent is ¥120,000.

Apartment A:

Deposit: 1 month
Key money: 0
Agency fee: 0.5 month (+ tax)
This is often a “lighter start.”

Apartment B:

Deposit: 2 months
Key money: 1 month
Agency fee: 1 month (+ tax)
This can be hundreds of thousands of yen more upfront—even if the apartment looks similar online.

Quick comparison table (fill this in while you shop)

Item	Apartment A	Apartment B
Deposit (敷金)
Key money (礼金)
Agency fee (仲介手数料)
Other fees (insurance/guarantor/lock)
Upfront total

6) What to say to the agent (copy/paste)

“Could you please send the full initial cost estimate (見積もり) with a line-by-line breakdown of:

deposit (敷金),
key money (礼金),
agency fee (仲介手数料),
and any mandatory add-ons (insurance, guarantor fee, lock change, support service)?
Also, please tell me which items are refundable or partially refundable.”

If they answer clearly, good. If they don’t, you just saved yourself from a messy contract.