Hidden Costs of Renting an Apartment in Tokyo: Key Money, Security Deposit, and More

Relocating for work or spending a season in another country comes with enough challenges. Adapting to a new culture and navigating unfamiliar systems can feel overwhelming. Renting an apartment, especially in Tokyo, adds another layer of stress to the mix.

It’s important to know that apartment rental costs in Tokyo go way beyond the advertised monthly rent. Several upfront and ongoing fees significantly increase housing costs, catching many expats by surprise.

This guide covers all the hidden costs of renting in Tokyo, so you can budget accordingly and avoid unexpected expenses.

Average Apartment Rental Costs in Tokyo

Renting an apartment in Tokyo under a traditional, two-year lease costs around ¥96,000 per month (about $590) for a studio or one-bedroom unit (1R–1K). Larger apartments, such as 2LDK or 3LDK units, cost around ¥231,700 per month (about $1,415).

If you’re not familiar with Japanese apartment layouts, here’s a quick lesson to help you understand rental listings: 

Japanese rentals use layout codes such as 1R, 1K, 1DK, 1LDK, and 2LDK. 

The number indicates how many separate rooms exist in the apartment, excluding the kitchen and bathroom. “1” means one separate room, while “2” means two separate rooms, and so on.

The letters describe how the kitchen and living areas are organized:

• K (Kitchen): Indicates a separate kitchen area, usually compact and intended only for cooking
• DK (Dining Kitchen): Indicates a larger kitchen with enough space for a dining table
• LDK (Living, Dining, Kitchen): Indicates the most spacious layout, combining the living room, dining area, and kitchen into one large open space

Tokyo’s rental prices are among the highest in Japan. As you factor in common fees such as security deposit, key money, and other costs, apartment rental costs in Tokyo can equal several times the monthly rent.

So, how are foreigners renting apartments in Tokyo?

For remote workers or corporate travelers, mid-term furnished apartments are increasingly popular because they offer simplified booking and transparent pricing.

Hidden Rental Fees in Tokyo

Budgeting for an apartment rental in Tokyo involves mandatory fees and some additional, upfront costs you may need to pay depending on your contract.

To help foreigners avoid surprises when relocating to Japan, find a breakdown below of the most common apartment rental costs in Tokyo.

1. Security deposit (shikikin)

The security deposit in Japan is a mandatory fee for rental properties. It typically costs the equivalent of one to two months’ rent.

It’s paid to the landlord at the start of the lease, and can be used to cover unpaid rent or damage to the property. If no repairs are needed at the end of the lease, the deposit is refunded to the tenant.

Considering that the average cost to rent a studio or one-bedroom apartment (1R–1K) in Tokyo is ¥96,000, you can expect to pay between ¥96,000 and ¥192,000 (about $600–$1,200) for a security deposit.

2. Key money (reikin)

Key money in Japan is a non-refundable payment made at the start of a contract as a gesture of gratitude to the landlord for renting the property.

This practice dates back to post-World War II Japan, when there were housing shortages across many regions of the country. Over time, this custom was incorporated into the rental system. 

Today, key money usually ranges from zero to two months’ rent. The good news for renters is that the practice of reikin is on the decline, especially in Tokyo, with many listings advertising “reikin zero.”

3. Advance and prorated rent

In Japan, rent is usually paid in advance. When signing a traditional lease, you will be required to pay the rent for the following month upfront. 

If you move to a property mid-month, prorated rent under a standard lease is calculated from the day you move in until the end of that month.

If your lease begins on March 20, for example, your prorated rent for March 20–31 would be approximately ¥34,065 (about $213), considering that the average cost of a studio or one-bedroom apartment (1R–1K) in Tokyo is around ¥96,000 (about $600).

4. Fire insurance (kasai-hoken)

Fire insurance is a mandatory fee paid upfront when you sign the lease or renew your contract for an apartment in Japan. It covers damage in the event of a fire and safeguards the tenant’s possessions and legal responsibilities.

Fire insurance in Japan usually costs between ¥20,000 and ¥40,000 (around $123 to $246) for 2 years, with higher premiums depending on the coverage you choose to add. 

5. Real estate agency fee (chūkai tesūryō)

Real estate agencies in Japan are legally allowed to charge up to one month’s rent (plus 10% consumption tax) as a commission fee.

Almost all agencies charge the legal maximum, with the tenant expected to cover the full amount and pay upfront as part of the initial move-in costs.

6. Other expenses to consider

In addition to the mandatory fees, there are other expenses that you may find when browsing Japanese listings:

• Guarantor company fee: Many rentals require tenants to use a guarantor company covering unpaid rent, if necessary. Expect to pay 0.5–1 month’s rent upfront, plus an annual renewal fee of around ¥10,000–¥20,000 (approximately $61–123).

• Lock replacement fee: Some landlords charge ¥10,000–¥30,000 (around $61–184) to replace the locks when a new tenant moves in.

• Parking fees: Tokyo parking costs between ¥20,000 and ¥50,000+ per month (around $123–307) in central areas. If you own a bike instead of a car, many buildings also charge ¥500–¥2,000 per month (about $3–12) for a bicycle spot.

• Renewal fee (Kōshin-ryō): Japanese leases typically run two years, and a fee of one month’s rent is common to renew the contract.

• Deodorization fee: Paid when moving out, this fee covers the cost of removing odors (pets, smoking, or other) before the next renter moves in. Ranges from ¥30,000 to ¥50,000 (around $184–307).

Besides these, remember to budget for furnishing costs and utilities. Most standard apartments don’t include utilities in the rent.

The Real Cost of Renting in Japan

Now that you’re familiar with the mandatory fees and common apartment rental costs in Tokyo, it’s easy to see how these upfront expenses can quickly add up to your living costs.

That’s why many corporate travelers, remote workers, and relocating professionals are choosing flexible-term apartments instead.

Platforms like Anyplace offer fully furnished, work-ready apartments in major cities like Tokyo for stays of 30 days or longer. 

With upfront pricing and simplified booking, you can move in without the hassle and expense of a traditional rental.

Browse furnished apartments in great locations across Tokyo and find the perfect stay for you.