Before you sign the contract, carefully confirm how the following items are specified, especially the shiki-kin (refundable deposit) and rei-kin (Key money), which are a Japanese practice that you may not be familiar with.
You might pay some money to real estate agency to make a temporary booking of the accommodation you like before making a formal contract.
This money is to be used for deposit in later procedures.
1.Guarantor (hosho-nin)
In most cases a guarantor must be appointed and it is best to appoint a Japanese as guarantor.
2.Initial Deposit (tetsuke-kin)
Tetsukekin is the money to be paid as the proof of completion of a contract. It will be part of Guarantee Money.
3.Key Money/Gift Money (rei-kin)
This money is paid to the landlord as a token of gratitude and is not refunded when you move out.
4.Refundable Deposit (shiki-kin)
This is money left with the landlord as security for your rental payments. As a rule, it is paid back to you when you move out. However, if you do not pay the rent or if you damage the property, this money will be appropriated to cover the amount of the repair cost owed. The remainder will be returned to you. It is common practice in the Kansai area to put the Key Money (reikin) and Refundable in the Kansai area to put the Key Money (reikin) and Refundable Deposit (shikikin) together and refer to it as Guarantee Money (hoshokin). It is also a common practice that when the tenant moves out, part of deposit is deducted as the repair fee of any damage in the house caused by the tenant, which is called "Shikibiki (or Kaiyaku-biki)."
5.Realtor's Fee (chukai-ryo)
This is the commission paid to the real estate agent. In principle, the tenant and landload pay respectively one half of the sum of money equivalent to one-month's rent.
However, at time of contract, if both parties to the agreement are of the same mind; the proportion paid by each party may be changed.
6.Period of Lease (keiyaku-kikan)
A normal lease period is two years. The rent may be raised upon renewal of the contract. In addition to the above payments, you may be required to bear expenses needed to restore the accommodation to its original state when you move out.
7.Rental Fee (yachin)
You must pay the monthly in advance by the last day of the previous month.
8.Maintenance Fees (kanri-hi)
These are included to cover the maintenance of communal facilities at condominiums. They are sometimes included in the rent.
Terminating the Contract
When you wish to terminate the lease, you must give advance notice (normally one to two months) to the landlord in accordance with the provisions of the contract. If you move out without giving notice, or if you give notice just before moving, you might be charged extra rent.
You might pay some money to real estate agency to make a temporary booking of the accommodation you like before making a formal contract.
This money is to be used for deposit in later procedures.
1.Guarantor (hosho-nin)
In most cases a guarantor must be appointed and it is best to appoint a Japanese as guarantor.
2.Initial Deposit (tetsuke-kin)
Tetsukekin is the money to be paid as the proof of completion of a contract. It will be part of Guarantee Money.
3.Key Money/Gift Money (rei-kin)
This money is paid to the landlord as a token of gratitude and is not refunded when you move out.
4.Refundable Deposit (shiki-kin)
This is money left with the landlord as security for your rental payments. As a rule, it is paid back to you when you move out. However, if you do not pay the rent or if you damage the property, this money will be appropriated to cover the amount of the repair cost owed. The remainder will be returned to you. It is common practice in the Kansai area to put the Key Money (reikin) and Refundable in the Kansai area to put the Key Money (reikin) and Refundable Deposit (shikikin) together and refer to it as Guarantee Money (hoshokin). It is also a common practice that when the tenant moves out, part of deposit is deducted as the repair fee of any damage in the house caused by the tenant, which is called "Shikibiki (or Kaiyaku-biki)."
5.Realtor's Fee (chukai-ryo)
This is the commission paid to the real estate agent. In principle, the tenant and landload pay respectively one half of the sum of money equivalent to one-month's rent.
However, at time of contract, if both parties to the agreement are of the same mind; the proportion paid by each party may be changed.
6.Period of Lease (keiyaku-kikan)
A normal lease period is two years. The rent may be raised upon renewal of the contract. In addition to the above payments, you may be required to bear expenses needed to restore the accommodation to its original state when you move out.
7.Rental Fee (yachin)
You must pay the monthly in advance by the last day of the previous month.
8.Maintenance Fees (kanri-hi)
These are included to cover the maintenance of communal facilities at condominiums. They are sometimes included in the rent.
Terminating the Contract
When you wish to terminate the lease, you must give advance notice (normally one to two months) to the landlord in accordance with the provisions of the contract. If you move out without giving notice, or if you give notice just before moving, you might be charged extra rent.
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