Property
Japan — Property: Rental Market
Japanese rental contracts traditionally involve two upfront payments: reikin (key money), a non-refundable gratitude payment to the landlord with no basis in Japanese law, and shikikin (security deposit), a refundable deposit (typically 1-2 months' rent) covering repair/cleaning costs at move-out. Reikin can be freely negotiated or waived before signing but becomes a binding contractual obligation once the contract is signed. The 2020 Civil Code revision clarified that tenants are not responsible for normal wear and tear, strengthening deposit-return protections. As of 2026, a housing surplus and demographic shifts are making 'no key money' (reikin-nashi) listings increasingly common, and easier for expats/digital nomads/students to secure without a personal guarantor by targeting specialized agencies — though reikin remains deeply entrenched in Tokyo, Kyoto, and Osaka, while 'no key money' practice is standard in Hokkaido, Okinawa, parts of Tohoku (Aomori, Akita), and Fukuoka.
Key facts
- Reikin (key money) is a non-refundable landlord gratuity with no legal basis; shikikin (security deposit) is refundable, typically 1-2 months' rent.
- Reikin is negotiable before signing but binding once the contract is signed — it cannot be challenged retroactively.
- 2020 Civil Code revision: tenants are not liable for normal wear and tear when deposits are settled.
- 'No key money' (reikin-nashi) listings are growing nationally in 2026 due to housing surplus, but remain rare in Tokyo/Kyoto/Osaka and standard in Hokkaido, Okinawa, and parts of Tohoku/Kyushu.
Costs
- Reikin (key money, non-refundable): typically 1-2 months' rent (region-dependent, negotiable)
- Shikikin (security deposit, refundable): typically 1-2 months' rent
Common mistakes
- Not negotiating reikin before signing — it is only negotiable pre-contract and becomes a binding obligation afterward.
- Assuming reikin is legally mandatory nationwide — it has no basis in the Civil Code and is regionally variable, increasingly waived in many markets.