Key Money in Japan Explained: What Is Reikin and How to Avoid It
If you're renting an apartment in Japan for the first time, one line on your estimate will probably confuse (and annoy) you more than any other: key money (礼金, reikin) — a payment of usually one month's rent that goes straight to the landlord and never comes back.
This guide explains what key money actually is, how it differs from the refundable deposit, and — most importantly — the realistic ways to avoid or reduce it.
What is key money (reikin)?
Key money is a non-refundable "thank you" payment to the landlord, a custom dating back to Japan's post-war housing shortage, when apartments were scarce and tenants paid landlords a gratitude fee for taking them in. The housing shortage is long gone, but the custom survives — especially in Tokyo.
Typical amount: 1 month's rent (sometimes 2 for popular properties, increasingly 0 for others).
Key money vs. deposit vs. agency fee
These three fees are often confused. Here's the difference:
| Fee | Japanese | Typical amount | Refundable? | Who decides |
|---|---|---|---|---|
| Deposit | 敷金 (shikikin) | 1 month | Yes, minus cleaning/repair costs | Landlord |
| Key money | 礼金 (reikin) | 0–1 month | No | Landlord |
| Agency fee | 仲介手数料 (chukai tesuryo) | 0–1.1 months | No | Real estate agency |
How to avoid or reduce key money
1. Filter for "no key money" listings
On SUUMO or HOME'S, look for 礼金なし / 礼金0 (no key money). Around a quarter to a third of Tokyo listings now charge no key money, especially newer buildings managed by large companies and apartments outside the most popular neighborhoods.
2. Watch out for "zero-zero" trade-offs
Listings with no deposit and no key money ("zero-zero" properties) sometimes compensate with slightly higher rent or a mandatory cleaning fee at move-out. Always compare the total two-year cost, not just the move-in cost.
3. Negotiate in the off-season
Japan's rental market peaks January–March. If you move between May and August, landlords with empty rooms are far more open to waiving key money or offering "free rent" (one month free). Negotiation during peak season rarely works.
4. Eliminate the agency fee instead — it's easier
Here's what most foreigners (and many Japanese renters) don't know: key money requires the landlord's agreement to remove, but the agency fee — usually another full month plus tax — can be removed simply by signing with a different agency. Most listings on Japanese portals can be handled by multiple agencies, and some agencies (like Kurabeel) are paid by landlords instead of tenants.
No negotiation, no awkward conversation, same apartment, same contract — one month's rent saved.
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