Key money (reikin, 礼金) is often cited as one of the most peculiar and frustrating aspects of renting an apartment in Japan. In this article we explain why it is, in fact, not difficult to find a “no key money” apartment in Tokyo.
What is Key Money?
Key money is a gratuity you pay to your landlord as an upfront cost when you move into some apartments in Japan. It will not not be returned to you when you vacate your apartment.
Key money is often explained as a cultural custom or as a relic of the era of rapid post-war economic growth, when Japan experienced acute housing shortages in urban areas. Prospective tenants would pay key money to landlords to get to the head of the line. Nowadays, some landlords still charge key money. When a listing states that key money is required, it is typically equal to one or two months rent.
But there is also an economic rationale for key money: tenants, as a practical matter, have a right to renew in perpetuity under Japanese law, so landlords demand extra compensation to account for this option to renew.
According to data compiled by SUMMO, in Tokyo in 2015, 36.5% of rental properties did not require key money. In Osaka, this number was lower, at 20.9%.
How to find No Key Money Apartments
But how do you find no key money apartments?
The most effective way to find a no key money apartment is simply by making it part of your search criteria.
If you are visiting a bricks-and-mortar real estate agent and can speak some Japanese, tell the agent that you are only interested in no key money apartments.
Property = 物件 (bukken)
No key money = 礼金なし (reikin nashi) or 礼金ゼロ (reikin zero).
No key money property = Reikin nashi no bukken.
The agent will give you thick folders of listings to look through. The listings always indicate whether the property requires key money. Just skip those!
If you are looking online, for example on Realestate.co.jp, you can simply tick the checkbox indicating “No key money”.
A search of Real Estate Japan’s database as of today shows that one of the reasons that it is not difficult to find a no key money apartment is that a majority of listings in our database are no key money properties.
Please see the table below. Even for properties near Shibuya Station, one of the most popular stations among foreigners in Tokyo, about 49% of the listings do not require key money.
| Listings for No Key Money Apartments in Greater Tokyo Area as a Percentage of Total Listings | |||
| Data: Real Estate Japan database as of January 20, 2017 | |||
| Total | No Key Money | % of No Key Money Properties | |
| All Online Listings | 22,273 | 14,098 | 63.3% |
| Tokyo including western suburbs | 14,867 | 9,394 | 63.2% |
| Tokyo 23 Wards | 14,015 | 8,670 | 61.9% |
| Chiyoda Ward | 325 | 176 | 54.2% |
| Chuo Ward | 437 | 291 | 66.6% |
| Minato Ward | 2,990 | 1,857 | 62.1% |
| Shinjuku Ward | 1,288 | 736 | 57.1% |
| Bunkyo Ward | 365 | 229 | 62.7% |
| Shibuya Ward | 1,695 | 838 | 49.4% |
| Shinjuku Station | 198 | 110 | 55.6% |
| Shibuya Station | 582 | 297 | 51.0% |
| Roppongi Station | 714 | 493 | 69.0% |
| Chiba Prefecture | 899 | 781 | 86.9% |
| Saitama Prefecture | 1,358 | 939 | 69.1% |
| Kanagawa Prefecture | 2,911 | 1,919 | 65.9% |
| Yokohama City | 1,663 | 1,002 | 60.3% |
| Kawasaki City | 644 | 471 | 73.1% |
| Yokosuka CIty | 135 | 41 | 30.4% |
Click below to go to no key money apartments in Tokyo.
No Key Money Apartments in Tokyo 23 Wards
No Key Money Apartments in Shinjuku
No Key Money Apartments Shibuya
No Key Money Apartments Roppongi
You may also be interested in:
Tokyo Apartments
Browse our comprehensive listings and find your ideal apartment in Tokyo and Japan!