Job Discussion Forums

[Rob1209]

So I'm currently searching for apartments in Japan on the internet, with the intention of arranging viewings for when I arrive in early June. Now, I think I understand key money, deposits etc, but I've seen some contradicting information so would just like to be sure. Apologies if this has already been covered elsewhere, it doesn't seem to be in the FAQ, and I've had no success with the search function.

Key Money = a fee paid to the landlord in order to live in the apartment. Landlord keeps the money, nothing is returned to the tenant at the end of the contract. Correct?

Deposit/Security Deposit - I've seen these two items listed side by side. I believe the security deposit is to cover any damage sustained to the apartment or any unpaid rent at the end of the agreement. Tenant should expect a large portion of this back at the end of the agreement providing apartment has been well maintained and all rent has been paid? So in this case, what is meant by the first Deposit (listed separately to Security Deposit)? This seems different to the UK system whereby only one deposit is paid. How do Deposit & Security Deposit differ?


In the area I'm searching, there are plenty of apartments that specify no key money, and quite a few that specify no key money or deposits, which is encouraging. However, these apartments are quite often around 10,000Yen more per month than the ones that require key money and security deposit, for a similar standard of accommodation. So it would appear they offer less value over the long term.

Example

Apartment 1
2LDK 50,000Yen per month, Key Money 1 month, Security Deposit 2 months.

So, 12 months x 50,000 = 600,000 Yen
Key money & deposit = 150,000 Yen

Total cost - Best case scenario (all deposit returned) 650,000Yen
Worst case scenario (no deposit returned) 750,000

Apartment 2
2LDK 60,000Yen per month (no key money or deposits)

12 months x 60,000 = 720,000Yen


So Apartment 1 is potentially better value over 1 year, and much better value over 2 years, with a slight risk of being 30,000Yen worse value over 1 year.

Is this all as obvious as it looks, or are there other factors I haven't considered or things I've misunderstood?

Finally, most of the apartments listed are 2 year contracts. I'm only committing for 1 year at the moment. Are 2 year contracts for apartments standard in Japan? (In the UK, 6 months or a year is standard). If I see an apartment listed with a 2 year contract, is there room for negotiation?

Thanks in advance,
Rob

[pnksweater]

I found the same during my search. Key money may not be asked for, but they often jack up the monthly rent to compensate. However, before you give someone a bunch of your money, keep in mind that some land lords will require additional key money when you sign a second two year lease.

The bit about deposits/security deposits may just be a linguistic thing. The English information on Japan often comes from different places. British English, American English, South African English� you�re going to find multiple terms for the same Japanese word. When signing the lease the realtor will break down all the different fees and deposits and explain which are and are not refundable. If you need it, consider taking along someone with good Japanese so that you aren�t blindsided by anything in the contract later.

Landlords are supposed to look over the apartment with you prior to your departure. Your refunded deposit should be in your bank account within 24 hours. The last apartment I moved out of, the realtor offered to join me on the last look over. The land lady picked over every part of the apartment, even criticizing me for breaking things that were in perfect working order. The realtor told her to stop making things up and I got my full deposit back in my Japanese bank account the next day. Once you find an apartment you like, it wouldn�t hurt to give a little gift to the realtor (on top of the realtor fee they charge you) to say thank you. I am very grateful that I was on good terms with the neighborhood realtor. One little watermelon saved me more than 2 grand down the line.


HTH

[OneJoelFifty]

You might find that a cleaning fee will be taken from the deposit on moving out. This probably won't vary too much regardless of how much you've scrubbed the place beforehand (as I found out a couple of months ago...). But this should be specified. Alternatively, you might find that you pay an extra amount when you move in, for "maintenance", that should cover cleaning costs and not be part of your deposit.

Also, although it's not what you asked, expect to pay extra fees here and there. My last place had a 15,000 deposit for the gas company. I think the guarantor company cost 15,000 too.

It sounds like you're moving to a less glamorous location. Chances are there are a lot of empty apartments. Try a couple of different agents, and ask if they have any promotions going. Last year I rent a place (1DK, 30m sq, 40,000 a month) and got the first month's rent free as another agent was offering to waive their fees and I mentioned it.

[mitsui]

There is a surplus of housing and key money is less than before.
In 2000 my school had to fork out five months at first just for a crappy apartment that was old.

Other things you could pay are fire insurance or the gift to the landlord after two years. I think that could be since I live less than 10 minutes from a train station, so twice I have had to do that.

Also if you have pets, that could be a month's deposit right there.

The farther from a station you live, the less you can pay in rent.

As for the deposit, it helps to have a Japanese spouse haggle. I don`t think I have gotten back all of it but I got most of it.
At least take a Japanese friend or someone from work to talk to the realtor.

[Rob1209]

Thanks all for your advice.

Pnksweater - love the tips for keeping the realtor sweet and getting back the full deposit.

Joel - yes, less glamorous area is probably fair, though I'm pretty excited as it's easy access to many of Japan's main attractions (on a personal level).

Mitsui - thanks for the insight.

Is anyone able to answer my question about the availability of 1-year contracts? There seems to be almost exclusively 2-year contracts on the sites I'm searching.

Thanks.