Key Money

• 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 […]

• 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 […]