About initial contract fees such as deposit and key money
1. Deposit
Deposit is paid to the landlord as insurance in unpredictable cases and it will be used to cover delayed rent, damage repairs, and so on. The deposit is supposed to be returned to the tenant at the end of the contract, however, if there is any damage beyond normal wear-and-tear, the balance will be returned to the tenant after the restoration fee is deducted. In most cases, the tenant shall be responsible for the basic cleaning fee, so it is unlikely to receive back the deposit in full amount. It is recommended that tenants use the apartment neatly so there will be less to pay, and more amount returning when moving out. Deposit is usually equal to 1 to 2 months of rent in the Tokyo metropolitan area. It is paid at the time of signing the contract. Here are some things you need to be careful to get more deposit back at the end of the contract: -Do not smoke indoors. -Clean the room regularly. -Do not use pins or nails to hang things on the wall. -Do not damage the floor or the walls. -Remove the oil stains in the kitchen frequently. Any other damages and stains that require extra repair may be charged upon moving out. Please make sure to use the room neatly.
2. Key Money
Key money is paid to the landlord as a gratuity fee. Some areas in Japan call it differently, and some do not require the key money. This fee will not be returned at the end of the contract. Key money is usually equal to 1 to 2 months of rent, and it is paid at the time of siging the contract.
3. Other initial fees
Fire insurance fee This is insurance for natural disasters, and most tenants are required to subcribe. It is usually 15,000-30,000 Yen. It is paid at the time of the contract. -Real estate commission fee This fee is paid to the real estate agency as a service charge. Legally, the real estate agents can only charge for 1-month rent worth of commission fee. Therefore most agents ask for 1 month's worth of rent as a commission fee (tax charged seperately). -Rent in Advance In Japan, rent is paid in advance. Therefore, the first month's rent is required to be paid at the time of the contract. If the lease begins in the middle of a month, the first month's rent will be prorated. In this case, most tenants are asked to pay the rents of the first and second month at the time of the contract. -Lock change fee Some landlords ask for a lock change fee, to change the locks of the doors between contracts. This is to prevent any crimes from occurring in case the previous tenant made copies of the old key. In some cases, this fee is not mandatory. The fee is usually around 10,000-30,000 Yen (tax charged seperately). -Guarantor service fee Guarantor company acts as a rental guarantor and is an alternative to having a joint guarantor (family). Using a guarantor company helps you rent an apartment without a joint guarantor. The guarantor company requires an initial service fee that in most cases amounts to the 50% ~ 100% of the monthly expense for the apartment: the rent + the maintenance fee + parking lot fee and this fee is paid 1 time at the time of the contract. Depending on the type of plan, 10,000 Yen annual fee may be charged from the second year, a monthly fee of 1,000-2,000 Yen will be charged in addition to your rent, or 1-3% of the monthly rent will be charged. -24 Hour support fee The 24 Hour support is a service to support the tenants in case of facility failures. It is usually 15,000-20,000 Yen for 2 years or 500-1,500 Yen monthly.
Tips and Information about Apartment Hunting in Japan
What are joint guarantor and guarantor company?
The landlords must avoid the risk of unpaid rent in case the tenant loses the ability to pay due to unemployment, illness, or loss of contact with the tenant. Therefore a joint guarantor is required when renting an apartment in Japan. Legally, the responsibility of a joint guarantor is as strong as the contractor. In most cases, a family member becomes one's joint guarantor.
Important points when looking for a room
Monthly rent budget It is best to set your monthly rent budget to 25-30% of your monthly income. -Initial cost Normally, moving in costs 4-6 months' worth of rent. If you cannot provide as much initial cost, try looking for apartments without deposits or key money.
What you need for application and contract
Personal identification card Passport, residence card, student card, insurance card, etc. -Joint guarantor or guarantor company (1) When there is a joint guarantor A joint guarantor must be a Japanese person with a stable income. You are required to give personal information such as their name, address, date of birth, contact information, income, work information. (2) When using a guarantor company When using a guarantor company, you are required to give emergency contact information. This includes their name, address, date of birth, and contact information. (Depending on the guarantor company and the type of plan you use, you may be asked to pay 50-100% of your monthly rent as your initial cost.)
How to activate electricity service and precautions
In Japan, electricity services are provided through private businesses. Thus, when you move to a new area, you must register with the electricity company in your respective area (Ex: in the Tokyo metropolitan area, Tokyo Electric Power Company). You can register online or make a phone call. GTN can also register on behalf of you if you need assistance.
How to activate gas and precautions
In Japan, there are two types of gas, city gas and propane gas, both provided through private businesses. To activate gas, you must register with the gas company respective to your new area, just like activating your electricity (for residents in the Tokyo metropolitan area, Tokyo Gas). You can call to register or apply online. After registration, a staff member will come to your new apartment and will activate your gas. You must be present for this procedure for safety.
How to activate water and precautions
In Japan, water is provided through the Government Bureau of Waterworks of each designated area. You must contact the respective Bureau by phone, FAX, or apply online to activate your water services. For residents in Tokyo, please contact the Bureau customer center 3-4 days before activation or deactivation of your water services. If you need assistance, GTN can contact them on your behalf.