Renting an apartment in Japan: costs & the guarantor system
Renting in Japan comes with two surprises for newcomers: a stack of up-front costs that can total several months’ rent, and a guarantor requirement. Here’s what to expect and what protects you, based on MLIT (the national housing ministry), the Tokyo Metropolitan Government (TMG), and UR.
The up-front costs
MLIT’s official Apartment Search Guidebook lists the payments due at signing, with a rule of thumb of “4 to 7 months rent” in total:
- Security deposit (shikikin) — usually about 2 months’ rent, held against unpaid rent or repairs; the remainder is returned when you move out.
- Key money (reikin) — a non-refundable gift to the landlord, common in the Kanto region, usually 1–2 months. Some properties now charge none.
- Agency fee — to the real estate agent, capped at within 1 month’s rent.
- One month’s rent in advance, a damage insurance premium, and the common service fee.
These are MLIT’s stated customary figures, not fixed by law, and vary by region.
The guarantor / guarantee-company system
MLIT says a personal guarantor (rentai hoshonin) — someone with sufficient income who covers unpaid rent or repair costs — is generally required to rent. If you don’t have one, a rent guarantee company (hosho gaisha) can stand in for a fee (MLIT cites figures around half a month’s rent, and elsewhere 35–50% of one month, for a 2-year term). Note the guarantee company isn’t insurance for you — if it pays your rent, it bills you for it. Many landlords require one or the other.
Your protections: standard contract & move-out rules
Two official tools reduce disputes. First, MLIT publishes a Standard Lease Contract (賃貸住宅標準契約書) designed to prevent disputes — a model template (not legally mandatory) worth checking your contract against. Second, the restoration-to-original-condition (genjo kaifuku) guideline sets who pays at move-out:
- Landlord’s cost: ordinary wear and tear and natural aging (already covered by your rent).
- Tenant’s cost: damage from intentional acts, negligence, or non-standard use — typically deducted from your deposit.
In Tokyo, brokers are legally required to explain these move-out rules before you sign. A special clause shifting extra restoration cost onto you is only valid if you clearly understood and accepted it — so read the contract, and don’t assume the whole deposit is non-refundable.
The shortcut: UR rental housing
If the up-front pile puts you off, UR (Urban Renaissance Agency) housing is an official alternative that advertises no key money, no agency fee, no renewal fee, and no guarantor. UR says move-in costs are just a 2-month deposit plus prorated rent and the common service fee — often far cheaper to start than the private market.
Frequently asked questions
What up-front costs should I budget for?
Per MLIT’s official guidebook, budget for a security deposit (shikikin, ~2 months, refundable minus deductions), key money (reikin, ~1–2 months in Kanto, non-refundable), an agency fee (up to 1 month), one month’s rent in advance, damage insurance, and a common service fee — a rule of thumb of about 4 to 7 months’ rent in total. A guarantee-company fee may be added.
Do I need a guarantor?
Generally yes. MLIT states a personal guarantor (rentai hoshonin, who must have sufficient income) or a rent guarantee company (hosho gaisha) is normally required so the landlord has recourse if rent goes unpaid. The guarantee company charges a fee instead.
Who pays for wear and tear when I move out?
Ordinary wear and tear and natural aging are the landlord’s cost (covered by your rent); damage from your intentional acts, negligence, or non-standard use is yours, usually deducted from the deposit. This is MLIT’s “restoration to original condition” (genjo kaifuku) guideline, and Tokyo requires brokers to explain it before you sign.
Is there a way to skip key money and a guarantor?
Yes — UR (Urban Renaissance Agency) rental housing officially has no key money, no agency fee, no renewal fee and no guarantor. UR says move-in costs are just a 2-month deposit plus prorated rent and the common service fee.
Costs, customs and the guarantee-fee figures above are MLIT’s stated rules of thumb and vary by region and property (2026-07-13); they aren’t fixed by law. This is general information, not legal advice — confirm the actual terms in your own contract and with the agent before signing.
Sources
- MLIT — Apartment Search Guidebook (official EN, costs & guarantor) (retrieved 2026-07-13)
- MLIT — Standard Lease Contract (賃貸住宅標準契約書) (retrieved 2026-07-13)
- MLIT — Restoration to Original Condition guideline (原状回復) (retrieved 2026-07-13)
- Tokyo Metropolitan Government — Tenant-Landlord Dispute Prevention (EN) (retrieved 2026-07-13)
- UR Urban Renaissance Agency — Merits of UR rental housing (retrieved 2026-07-13)