Taylor McKenzie News: Apartment Rent in Japan,

Apartment Rent in Japan

For years, complaints on apartment payment scams has been continuously rampant. Some are valid and agreeable fraud while some are basically ignorance of the economic function of the deposit and key money. Understanding their differences has a crucial role to ones awareness and immunity of getting conned.

The deposit or shikikin (敷金) is a non-negotiable and refundable expense held in trust by the property owner as an initial part-payment to prevent the landlord from endorsing the property to someone else during an agreed period of time. As the landlord entrusts the tenant, the deposit will cover damages, repairs and other unmet conditions of the lease.

On the other hand, key money or reikin (礼金) is a non-refundable fee which is basically an amount that an occupant gifts to the landlord. The practice started after the Kanto earthquake, and most properties are ruined. Since properties are few, giving key money will help the landlord to choose who to lend the place. Though Japan is restored and there are many properties available, key money can still be a part of the initial rent cost due to few good reasons. One is the demand based on the location and the condition and the other is to cover fees for the realtor.

Usually the key money is similar to one month's rent and may reach up to three months depending on the property size and quality.

No all properties require both deposit and key money. Some properties may prefer key money than a deposit. Though key money is a cultural practice, it is false that it is necessary to all property owners.

You may try negotiating or looking for a property that is appropriate to your finances. If you will be staying for more than a year, you may lower the key money by suggesting to pay a higher rent.

Some try to avoid to pay the key money completely and ends up compromising to what is available. However, you may try to eye for a good place and watch your target reach its key money to a low level to the point where the landlord simply wants it occupied.

For some, flexibility is fundamental for you may avoid paying key money and avail low rent by occupying shared houses as long as you are adaptive to living with other people who may have different schedules and house rules. You may also expand the location of your property search and not limiting to a station or area.

Beware of hidden fees though and be sure you review the full initial cost. Some may not ask for key money but will have fees that may increase the rent. Give the landlord or realtors a call to schedule visiting their offices in person.