What does shikikin reikin (deposit and key money) mean? Average amount is also introduced.
What does shikikin reikin mean?"
How much does a security deposit (shikikin reikin) cost?"
I want to know about Shikikin Reikin (deposit and key money) and eliminate any concerns I have about living in Japan!"
Many people who have moved to Japan from overseas may have trouble understanding the living system. When renting a house, there are various rules unique to Japan, so let's try to understand them little by little. Shikikin reikin (deposit and key money) is an essential part of real estate knowledge in Japan, so please learn about it.
In this article, we will introduce the meaning of shikikin-keikin and why they are necessary, in an easy-to-understand manner for foreign residents new to Japan. We will also explain how much the deposit and key money is and whether there are houses without deposit and key money. Please read to the end.
Also, if you are looking for a room in Tokyo, please check out the following articles.
Where is the cheapest rent in Tokyo? Here are some recommended areas!
What does shikikin reikin (deposit and key money) mean?
First, let's review the two meanings of each of the two types of deposits and key money.
- A security deposit...is a kind of collateral that is paid to the landlord (owner) who leases the property to you.
- Key money...is meant as a thank-you money to be paid to the landlord (owner) of the rental property.
A security deposit will be paid in many foreign countries when you move in. The system of key money is not found in other countries and is unique to Japanese culture. Since key money is meant to be paid to the owner, there is no money returned to the owner after payment.
Why is a security deposit (shikikin reikin) required?
Learn about why the deposit and key money is needed, along with what it means.
Since key money is set aside to thank the landlord for renting the room for rent, it is easy to see why it is necessary.
Key money may also be set free by the owner. Reasons for setting it free include not wanting to leave an interval between the next tenant moving out and the next tenant moving in. Also, in some cases, key money is set free because the owner does not want to lower the rent.
A security deposit is meant to be money paid to the owner of a rental property as security. In some cases, the security deposit is used to pay for repairs to the room.
How much do I have to pay for the deposit and key money (shikikin reikin)?
Many people may be concerned about how much they will have to pay in terms of deposit and key money. The average amount of key money for security deposit and key money in Japan is approximately as follows
- Deposit...amount equivalent to one month's rent
- Key money...amount equivalent to one month's rent
Please know that the above amounts are for reference only. In general, rents tend to be higher in the city than in the countryside. In addition, if the building is newer and more conveniently located, such as near a train station, the rent will tend to be higher.
Also, in rare cases, the security deposit may be set at two months or more of the rent, so check carefully. The reason for this is that the cleaning cost when you move out may be high. Also, the cost of restoring the apartment to its original condition may be high.
What are restoration costs?
To help you understand more about security deposits and key money, here is what the term "restoration costs" means.
Restoration costs are paid from the security deposit paid when the tenant moves in. It refers to the cost of cleaning and repairing deteriorated facilities after the resident has moved out. Please note that if the room is severely deteriorated, you may be charged a restoration fee as an additional charge to the security deposit paid to the tenant.
Is there a house without a security deposit (shikikin reikin)?
Many people are wondering if there are houses in Japan that do not require a security deposit and key money. Since key money is money paid as a thank-you to the owner, it is sometimes free. However, there are few rental houses that offer both a security deposit and key money free of charge.
Characteristics of rentals that are set free of security deposit and key money are, for example, the following cases.
- Years since the building was built.
- Equipment is outdated.
- Poor sunlight and poor ventilation
- Nearby sounds can be loud and noisy
- Located in a bad location (bad traffic)
If a rental property has no security deposit and key money, be sure to check the reason why it is free. The real estate agent who introduces the rental property will be able to tell you the reason, so please be sure to confirm the reason properly.
summary
In this issue, we have provided an overview of Shiki-Kin-Kei-Kin. Let's review again some important points about Shiki-Kin-Kei-Kin.
- The security deposit is meant as collateral to be paid to the owner of the rental.
- Key money is meant as a thank you to be paid to the owner of the rental.
- The average amount of security deposit and key money is equal to one month's rent, respectively.
- In some cases, the deposit and key money are set free, but one should carefully check the terms and conditions of the lease.
If you have any questions about the security deposit and key money, check carefully with the real estate agent. Rather than signing a contract with something you do not understand, you will be more satisfied with the contract after all your questions have been answered. Find a great property that suits you.
