Renewal Fees (更新料) in Japan — Why They Exist, When You Must Pay Them, and How to Avoid Them If you rent an apartment in Japan, you may eventually encounter a charge called 更新料 (kōshinryō) , meaning “renewal fee.” This fee surprises many foreigners because it is rare outside Japan, and it is not well explained by most resources. So what is this fee, why does it exist, and do you really have to pay it? What Renewal Fees (更新料) Are 更新料 is a payment tenants make to continue using the rental property after their initial contract period (usually two years). Most commonly: The renewal fee applies every 2 years The fee amount is typically 1 month of rent It is paid directly to the landlord or property owner It is not refunded It does not cover maintenance, repairs, insurance, or cleaning — it is simply a continuation fee to renew the contract. Why Japan Has Renewal Fees (And Why They Surprise Foreigners) In many countries, rental contracts are either mon...
Key Money (礼金) in Japan: How It Really Works For many foreigners, key money (礼金 / reikin) is one of the most confusing parts of renting in Japan. It is a large upfront payment to the landlord, and unlike a deposit, it is usually never returned. This guide explains why key money exists, how it works in practice, and when you can avoid it, with a focus on the current rental market in Tokyo. What Key Money Is – And What It Is Not When you look at Japanese rental listings, you will often see 礼金 listed together with other initial costs. Key money (礼金) is: A one-time payment to the landlord at the start of the lease Non-refundable in almost all cases A custom and market practice , not a legal requirement Typically equivalent to 1–2 months of rent Key money is not: A deposit (that is 敷金 / shikikin ) A broker fee (that is 仲介手数料 ) A cleaning or restoration charge It is important not to confuse 礼金 with 敷金. A deposit (敷金) may be partially returne...