You are currently viewing Key money or Deposit in Renting an Apartment in Japan

Key money or Deposit in Renting an Apartment in Japan

Renter of real estate needs to pay deposit in Japan

When people rent an apartment in Japan, most of them have to pay Key money called Shikikin. Owner demands for this money for insurance of renters nonpayment of rental fee. Or at the end of lease contract period, it may be found that renter broke the room. In that case, owner can use this key money. So, in other cases, this key money should be refunded to renter when renter leaves the room. However, in fact there are a lot of troubles concerning with key money/ deposit. Last year there were over 10,000 issues about returning of key money/ deposit. This is one of example. After 4 years of stay during college days, The tenant has decided to leave his apartment at the end of March. Then he was told  by the landlord that owner would deduct 200,000 yen from key money/ deposit in order to change the wallpaper, repair of damage in closet door, and to clean the room. The tenant was disappointed with it because the rental fee is 50,000 yen. But the owner billed 200,000 yen. In general, when tenant lives in her room after certain period, her room will get aging. Color of Wall paper will change, tenant will damage floor surface without negligence. And when tenant leaves her room, owner will repair these small damages. But, owner can not bill these cost toward tenant. Because, monthly rental fee should include these ordinal expense. But, at the time that owner and tenant signed lease contract, if they agree that tenant should pay cost to repair these ordinal expense, this special clause is valid. Law renting to lease of real estate in Japan

Leave a Reply