Advance rent, First Month's Rent, is a payment to the landlord at the beginning of the lease period; usually included in the initial cost. This payment covers the rent for the first month. If the move-in date is not on the first day of the month, lessee also pays per diem rate (daily rate for the apartment).
For example, if your lease begins on the 26th of July, your advance rent fee will be August's rent + rent for the remaining days in July.
The security deposit is included in the initial cost and covers for any damage to the property during the lease period. It will also be used for any delinquent rent payment or if you terminate the contract with penalty conditions. In addition to repair costs for damages- excluding natural wear-and-tear- the cleaning fee may also be deducted from your security deposit; remaining amount will be refunded to you upon vacating the apartment.
We will explain the terms of the security deposit with you, prior to signing the contract.
Key money is a payment made to the landlord as gratitude for accepting your application. Although this obsolete post-war custom persists, there has been an increase of landlords whom disregard this fee. Please note that this money is considered a "gift" to the landlord and is non-refundable.
Lock Replacement Fee
The lock replacement fee is a non-refundable fee charged by the landlord to replace the apartment's front door lock, for your security.
Guarantor or co-signer fee, included in the initial cost, is usually required for apartment rentals in Japan. This payment acts as an insurance policy for the landlord, where the guarantor is accountable for any financial obligations if the lessee is delinquent on payment.
Who can I have as a guarantor?
The guarantor (which excludes tenants of the same apartment unit) may be a member of your family, relatives, friends, or place of employment.
The guarantor is required to:
reside in Tokyo (or be within reasonable distance to co-sign the contract);
be fluent in Japanese.
Additionally, he or she may be required to provide documents similar to the items required in your application process. The guarantor fee is usually 1 to 2 months' rent, but may vary depending on the contract. If you do not have a guarantor, we can help you apply to a third-party guarantor company.
The roll of a guarantor company is to cover for any financial obligations if the lessee is not able to make payment. They are also responsible for screening your application, during which, you may get a call from them confirming your personal information. In most cases, enrolling in a guarantor company negates the need for a personal guarantor. However, smaller property management companies or landlords may ask for both, depending on your place of employment. In recent years, there as been a trend where property management companies require you to enroll in a guarantor company to complete an application, regardless of whether you have a personal guarantor.
Management fee (Common-area Management Fee), included in the monthly rent, is a payment to the building management company for the upkeep of the building, building amenities, and common areas.
Why is the initial cost so expensive?
The initial cost consists of the following fees: advance rent, security deposit, key money, guarantor fee, lock replacement, fire insurance, cleaning, document processing, and agency fees. However, some costs are not applicable, and some are negotiable.
Initial cost calculations shown on our website are the best estimates we can give, based on all available information provided by the owner and property managers. Our initial cost calculations are a great guide for preparing for the upfront payments you'll have to make on the contract signing date, but the final initial cost may vary from our best estimates.
At Apts.jp, we charge a standard 1 month's rent (plus tax) as commission fee, and that includes our on-going support during the entirety of your lease. The full extent of our services is included in our agency fee.
Our service includes:
finding you an apartment that suits your lifestyle
taking care of any problems you may have during your leasing process
negotiating on your behalf
assists with address registration at ward offices
setting up bank accounts, mobile phone, internet, and utilities
after moving-in, if you have any issues with your apartment, we'll sort it out!
Fire Insurance is the literal translation for renters insurance "火災保険".
The renters insurance will cover damages and liabilities such as fire, water leaks, theft, personal property, earthquakes, and floods. Depending on the coverage, the average cost is usually 20,000 JPY per month with a 1- or 2-year annual fee.
The Closing Cost is the calculated amount of the "cost of changing the apartment", for your reference and information. This value does not include the first rent, or deposit, as these items should also exist with your current lease.
On top of this Closing Cost, you will also have to pay the stated advance rent and deposit, so you need to have at least the amount stated as "Total Closing Est. Payment" available in cash, at the time of contracting.