When reviewing rental estimates in Tokyo, you will almost always encounter "Shikikin 1 Month / Reikin 1 Month". While many renters pay these without second thought, Shikikin and Reikin represent entirely different financial concepts.
In this guide, a licensed Tokyo real estate professional explains whether security deposits are actually refunded, what key money really is, and 5 practical strategies to cut upfront fees to the bare minimum.
Table of Contents
- 1. Key Differences Between Security Deposit (Shikikin) & Key Money (Reikin)
- 2. How Much Security Deposit Do You Get Back? Restitution Rules & Financial Simulation
- 3. 5 Proven Tips to Save on Security Deposits & Key Money in Tokyo
- 4. Frequently Asked Questions (FAQ) About Shikikin & Reikin
- 5. Conclusion: Smart Apartment Hunting with Zero Key Money Properties
1. Key Differences Between Security Deposit (Shikikin) & Key Money (Reikin)
When reviewing rental estimates in Tokyo, security deposit (Shikikin) and key money (Reikin) make up a major portion of your upfront costs. While many renters group them together, their financial purposes are completely opposite.
Security Deposit (Shikikin) acts as a temporary financial deposit held by the landlord during your tenancy. It covers potential rent arrears or repair costs if the apartment is damaged. When you move out, the remaining balance after deducting legitimate cleaning or restoration fees is refunded to your bank account. In short, keeping your room clean preserves your money like a personal savings account.
Key Money (Reikin), on the other hand, is a traditional Japanese custom stemming from the post-war housing shortage, meant as a "thank you gift" to the landlord for allowing you to rent the apartment. Key money is completely non-refundable, meaning zero yen is returned when you vacate the property.
2. How Much Security Deposit Do You Get Back? Restitution Rules & Financial Simulation
Many renters worry about whether they will actually receive their security deposit back upon move-out. In Japan, restoration guidelines established by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) clearly separate landlord responsibilities from tenant responsibilities.
- Tenant Responsibility (Deducted from Deposit): Stains or odor from indoor smoking, deep scratches or dents on flooring caused by dropped heavy objects, and mold caused by failing to wipe window condensation.
- Landlord Responsibility (Cannot be Deducted): Furniture pressure marks on carpets/flooring, natural wallpaper discoloration from sunlight, and key replacement costs (unless specified in a valid special lease clause).
Here is a detailed financial simulation for a typical Tokyo apartment tenancy:
📊 Security Deposit Refund Simulation (Rent ¥80,000 / Deposit ¥80,000)
- Security Deposit Paid at Contract (1 Month) ¥80,000
- ① Standard Cleaning Fee (Fixed clause) -¥38,500 (tax incl.)
- ② Sunlight Fading & Furniture Imprints ¥0 (Landlord Burden)
- ③ Accidental Flooring Scratch Repair (1 spot) -¥5,500
By understanding your lease terms and taking care of basic maintenance during your stay, you can reliably protect your deposit refund upon move-out.
3. 5 Proven Tips to Save on Security Deposits & Key Money in Tokyo
Here are 5 battle-tested strategies used by real estate experts in Tokyo to help tenants save maximum money on upfront costs:
1. Filter Search Specifically for "Zero Key Money" (Reikin-Zero) Properties
Common Mistake: Choosing an apartment based solely on train line and building age, only to realize at the estimate stage that 1.5 months of key money is required, blowing your entire move-in budget.
Potential Savings: Instantly saves ¥80,000 to ¥120,000 (equivalent to 1 month's rent).
💬 Exact Script to Use at the Agent Counter
"I want to minimize my upfront move-in expenses. Could you please show me available properties that have Zero Key Money (Reikin-Zero) or Zero Deposit & Zero Key Money?"
2. Negotiate Key Money Reductions During Summer Off-Season (June–August)
Common Mistake: Demanding heavy discounts during peak season (January–March), which results in landlords rejecting your application because other applicants are willing to pay full price.
Potential Savings: Reduces key money from 1 month (¥80,000) to half (¥40,000) or zero.
💬 Exact Script to Use at the Agent Counter
"I love this apartment and want to apply today. If the landlord can reduce the key money to half a month (or zero), I am ready to submit the application right now."
3. Request a "Free Rent" Period
Common Mistake: Pushing only for key money discounts when the landlord wants to maintain official property valuation rent figures, leading to a negotiation deadlock.
Potential Savings: 0.5 to 1 month of free rent (saving approx. ¥40,000 to ¥80,000), offsetting the key money cost.
💬 Exact Script to Use at the Agent Counter
"If reducing key money is difficult, would it be possible to request half a month (or 1 month) of Free Rent instead? That would bring the total upfront cost within my budget."
4. Cut Non-Essential Optional Fees (Disinfection, Support & Admin Fees)
Common Mistake: Assuming that pre-printed estimate items such as "Room Disinfection Fee" (¥15,000–¥25,000), "Insect Repellent Spray" (¥10,000), "24-Hour Emergency Support" (¥15,000–¥20,000), or "Document Fee" (¥10,000) are mandatory.
Potential Savings: Save ¥30,000 to ¥60,000+ instantly.
💬 Exact Script to Use at the Agent Counter
"Are the disinfection fee, 24-hour support fee, and document fees optional? I'd like to opt out of these items to reduce my upfront costs."
5. Opt Out of Designated Fire Insurance & Arrange Insurance Online
Common Mistake: Accepting the real estate agency's pre-assigned fire insurance plan (¥20,000–¥25,000 for 2 years) without checking whether self-arranged policies are permitted.
Potential Savings: Online fire insurance policies (e.g. Zurich, Rakuten) cost approx. ¥8,000–¥10,000 for 2 years (approx. ¥4,000/year~), saving ¥10,000 to ¥15,000.
💬 Exact Script to Use at the Agent Counter
"May I arrange my own fire insurance online that meets the required coverage limits (e.g. ¥10,000,000 tenant liability) and submit a copy of the policy certificate before contract signing?"
4. Frequently Asked Questions (FAQ) About Shikikin & Reikin
Frequently Asked Questions About Security Deposits & Key Money
Are "Zero-Shikikin / Zero-Reikin" (Zero-Zero) apartments really a good deal?
They offer dramatic initial savings, making them very popular among international residents. However, check whether a fixed cleaning fee applies upon move-out or if there is a short-term cancellation penalty clause before signing.
Can key money (Reikin) be negotiated down?
Yes! Particularly for apartments that have been on the market for a few weeks or during the off-peak season (June to August), negotiating key money down from 1 month to 0.5 months or zero is often successful.
Is the additional security deposit for keeping pets refundable?
In pet-friendly apartments, landlords often require 1 additional month of deposit, which is frequently listed as "non-refundable deposit amortization" (Shikikin Shokyaku) to cover pet-related odor and wear. Always verify the "Deposit Amortization" clause in your lease contract.
5. Conclusion: Smart Apartment Hunting with Zero Key Money Properties
Understanding that "Shikikin is a deposit to protect your future self" and "Reikin is a gift fee to eliminate if possible" is the first step toward smart apartment hunting in Japan.
The upfront cost of a rental contract in Tokyo can differ by ¥100,000 to ¥200,000 simply depending on your knowledge of these rules. Use our expert initial cost checklist below before signing any agreement.
📋 Expert Initial Cost Checklist (Verify Before Contract Signing)
- ☑️ Verified both Shikikin and Reikin amounts and checked for non-refundable deposit amortization clauses?
- ☑️ Filtered for Zero Key Money properties or attempted off-season discount / Free Rent negotiations?
- ☑️ Removed optional fees such as room disinfection, 24-hour support, and document preparation charges?
- ☑️ Confirmed permission to purchase your own fire insurance policy online (approx. ¥4,000/year~)?
- ☑️ Read through the lease agreement to check whether the fixed move-out cleaning fee is reasonable?
By saving money on unneeded key money and mandatory add-on fees, you can redirect those funds toward buying your favorite furniture, electronics, or enjoying your new life in Tokyo.
At Sorai Tokyo, we help international residents find low upfront fee apartments along the Chiyoda Line and across Adachi Ward. If you have questions about an estimate or want to check zero-reikin listings, chat with us on LINE anytime. We are here to support your move to Tokyo!
Author: Sorai Tokyo Editorial Team (Supervised by Licensed Real Estate Agents)
A real estate consulting team specializing in assisting foreign nationals find rooms and explaining initial costs in Tokyo. We break down language barriers and differences in customs, offering dedicated support in Japanese, English, and Vietnamese for a safe and secure start to your new life.