1.Initial Fee (Key Money & Deposit)
Apart from the deposit, there is another cost called “Key Money” often charged initially. Key money is 0 to 2 month’s rent, whereas deposit is 0 to 3 month’s rent depending on the property. Key money is non-refundable onetime payment.
1 month’s rent is often charged by the real estate agent as the industry standard. Consumption tax will be added on top. (The rate is 8% as of Apr 2016).
Monthly fee for general building maintenance for such as common areas, elevators and other facilities.
Money to be paid to the owner when renewing the lease contract and the amount in most cases is equivalent to one month’s new rent.
Lease contract is usually for 2 years, however it can be terminated with a month prior written notice within the contract period. Terms and conditions for contract termination is stated in the contract.
There may be a penalty for termination within a certain period. Penalty of 1 month rent for early termination within a year may be charged depending on the contract.
It may be a requirement to use a guarantor company instead of a guarantor that requires a payment of 50% to 60% of 1 month rent when signing a contract. As for the payment from the next year, it varies and the annual payment is required through the contract period. Use of a guarantor company as well as an individual guarantor may be required depending on the landlord.
7.Room Size: Often regarded as tatami size. J or 帖/畳 for tatami size.