Job Discussion Forums

[may be going]

i know it exists and is part of the procedure for getting a place in japan, but what exactly is it? what is it's history and how can giving a non-refundable slab of cash to a stranger just so you can move in to a place be justified in this day and age?

i see some places nowadays don't require key money so waht gives?

[Gordon]

First of all, this is Japan so it does not need to make sense or be justified. The key money is like a gift and a damge deposit that is non-refundable. For instance, some of the money will go to a realtor if they helped with any arrangements, some more to the landlord and maybe more to whoever happens to be in the room at the time. Often it amounts to anywhere between 2-6 months rent. If something breaks in your apt, there is no guarantee the landlord will fix it, usually the tenant is responsible because every appliance or fixture was something you provided yourself.
For the house I'm currently living in, I found the house myself, so cut out the middleman there and it was 2 months rent for the damage deposit. Pretty much the best I could hope for.

[Mike L.]

To the OP. To answer your question Key Money is a leftover from Japan's post war defeat when housing was in short suply.

Thus this money was created by, oportunistic thieves, Japanese landlords as a sort of "thank you" for providing a service for money.

It's continued existence is in decline as the war is long over, a real market economy seems to have taken shape, and there is a glut in rental housing in Japan.

JOY!!!

Look for the "CO-OP housing related" links with the search function for alternatives.

http://www.eslcafe.com/forums/job/viewtopic.php?t=8260&highlight=coop+housing

[Mike L.]

post submission problem

[Mike L.]

[bearcat]

[Nagoyaguy]

I think "key money" covers a range of charges all together;

1\ damage deposit. Often one or two month's rent. Legally, it is refundable when you leave, but a lot of landlords try to screw you out of it. It should NOT be used for cleaning or normal wear and tear, only for damage.

2\ "thank you money". can be from zero to usually 3 months rent. Basically, an anal raping. You pay extra for the "privilege" of paying rent every month.

3\ Agent's fee. Usually one half or one months rent. 99% of Japanese apartments are rented through real estate companies. It is hard to find private rentals. The agencies have offices and keep books of available apartments, with floor plans pictures and so on. If you rent a place, they get their cut.

4\ Insurance. Usually about 30.000 yen for the duration of the lease (generally one or two years). Mandatory.

Many companies are starting to do away with the system above as there is a glut of properties for rent. My apartment, for example, costs 73,000 yen a month, plus parking fee of 5000 yen. No thank you raping, one months damage deposit, one month to the agent (MiniMini company). Not too bad for a 3LDK size place.

[bearcat]

Actually Nag, all the charges you mentioned are each different and have their own name in Japanese. Keymoney, deposit, insurance, etc etc.

Thus they are seperate things and a renter may have to pay all or some of those in some sort of combination.

[Nagoyaguy]

True, that is what I was trying to imply. Reikin, shikikin, and all that. To me, the phrase "key money" covers whatever excess expenses you have to pay in order to get the key to your place. Forgot to mention also paying the last month's rent as a deposit, too.

[shuize]

I have also heard key money justified for the reason that landlord/tennant laws in Japan are very pro-tennant. Not surprisingly, if it generally takes six months to throw out a deadbeat tennant for non-payment, that's about how much key money they're likely going to have to pay in advance.