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  • 11/11/2010
  • 02/28/2021

Technique of Price Reduction Negotiation – Renting in Tokyo

The easiest target for price reduction negotiation is key money.? It is the money paid only right after the contract, and there will be no further trouble in the future. On the contrary, if the landlord reduces the rent, the difference of rent between the new tenant and the existing tenants may cause troubles.? Therefore, it is not very comfortable for the landlord to reduce the rent.? Reducing the rent is not impossible, but it depends on the landlord. Reducing the every-month payment is difficult but there are some ways to reduce your initial cost. One is the key money, which I have already mentioned.? Another is delaying the start of paying the rent.? If the rent is JPY1,500,000, and the rent occurs from 2 weeks after your move in, you will save JPY750,000. Negotiating price reduction of deposit is not recommendable. ?For the landlord, deposit is more like insurance than profit.? It is a mortgage for rent in arrears or bill for repairs. ?Therefore, it is unlikely that the landlord takes in the negotiation, and what is worse, it might awake ill feelings to the landlord, and lead to soaring of relations.? It is better to negotiate on other […]

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  • 11/09/2010
  • 02/27/2021

About Agent Commission – Renting in Tokyo

Agent Commission is the money paid to the real estate broker.? Generally, the amount is equivalent to 1 month rent.? If the rent is JPY100,000 the commission will be JPY100,000.? If the rent is JPY1,500,000, the commission is JPY1,500,000. Our Policy on Agent Commission Our agency, Higherground will discount this agent commission for all apartments.? The commission is 50% off for most of the apartments, and for some, the commission is free! What makes this large discount possible?? Normally, commission becomes expensive as the rent gets higher.? However, the amount of our work and expense doesn’t differ so much, whether the rent is JPY100,000 or JPY1,500,000.? Also, there are cases when the landlord pays us the agent commission.? This is when the commission is free for the customer. We do not wish you to make any unnecessary payments when choosing your dream home.? We would be grateful if you feel glad that you chose us as your real estate agent. For more information & tips on?renting in Tokyo, click here! — Higherground Co.,Ltd. 2-8-3 Minami-Aoyama, Minato-ku, Tokyo, Japan TEL:03-6459-2230 HP:http://www.higherground.co.jp/ TOP PAGE:?https://livingtokyo.net/

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  • 11/07/2010
  • 02/28/2021

About Key Money 2 – Renting in Tokyo

Key Money Today Nowadays, the city and the countryside became much closer, with telephones and air planes.? The need to be taken care by the landlord is no longer there. However, it is still general that key money is required for renting apartments. There are several theories of what key money is for.? Below are some of the representative theories. 1. Gratuity for executing the rental agreement 2. Advance payment of rent 3. Recompense for the blank period after vacating, when the landlord cannot have rent income 4. Cost for restoring to original state In recent years, an increasing number of landlords and real estate agencies have begun to offer “reikin-free” rental housing.? There are also apartments whose key money and deposit is both free, called ‘Zero-zero Bukken (??若???若????散)’. This Zero-zero Bukken seems to be very cheep, and is popular among low-income households, but it’s not necessarily appropriate to suggest so.? Since there are no key money nor deposit, the risk of the landlord is very high: if the tenant bunks off without paying delinquent rent, the landlord wouldn’t have any means to cover the loss.? Therefore, the landlord often collects fees on other names, for instance, key-exchange money and […]

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  • 11/06/2010
  • 02/28/2021

About Key Money 1 – Renting in Tokyo

What is Key Money? The system of key money is difficult to understand, for the term is used differently in different parts of the world. In France, it means money paid to an existing tenant who assigns a lease to a new tenant where the rent is below market. ??In the US, it sometimes means a bribe to a landlord. ?In other parts of the world it is used synonymously with normal security deposits, which are used to cover nonpayment of rent and excessive damage to a rental unit. In Japan, key money, called Reikin (腓守??, literally, “gratitude money”) is a mandatory payment to the landlord. ?Key money can be the equivalent of 6 months of rent or more, but is typically the same as 1 to 3 months of rent, often the same amount as the original deposit (Shikikin, ??潔??). ?This money is considered a gift to the landlord, and is not returned after the lease is canceled, unlike Shikikin or other deposits. The Origin of Key Money How did the system of key money start? It is said that originally, key money was paid in order to protect the job bachelors and students, who came to Tokyo from […]