Understanding Shikikin and Reikin in Japan
If you are planning to rent an apartment in Japan, you might come across two words that can be confusing: Shikikin (敷金) and Reikin (礼金). These are common terms in Japanese rental contracts, and they involve money you need to pay before moving in. But what exactly do they mean? Are they refundable? Why do you have to pay them at all?
In this article, we will explain these two terms in plain and simple English. We’ll also show you how the refund process works and what to expect when you move out. Whether you're a student, a worker, or just starting your life in Japan, this guide will help you understand these important parts of renting a home.
Shikikin is a type of deposit you pay to the landlord when you move into a rental property. Think of it like a security deposit. It is usually equal to one or two months of rent.
The purpose of Shikikin is to protect the landlord in case something goes wrong. For example:
If everything is fine when you move out, the landlord will return most or all of the Shikikin to you. But if there are problems, some or all of the money may be used to cover the costs.
Reikin is often called "key money" in English. But it is not really related to a key. It is more like a gift to the landlord. Reikin is a non-refundable fee, which means you do not get it back.
The idea of Reikin started long ago when Japan had a housing shortage. People would give money to landlords to say thank you for letting them rent the property. Today, Reikin is still part of many rental agreements, especially in big cities like Tokyo or Osaka.
Usually, Reikin is equal to one or two months of rent. But not all apartments require Reikin. Some properties are listed as "No Reikin" (礼金なし), which can help you save money when moving in.
Here’s an easy way to remember:
It’s like this: Imagine you go to a friend’s house and they ask you to leave a bag of cookies just in case you break something. That’s Shikikin. If nothing goes wrong, they’ll return the cookies. But if you eat all their snacks or spill juice on the sofa, they’ll keep the cookies as payment. On the other hand, Reikin is like bringing a box of chocolate just to say thank you — and you don’t expect to get it back.
When you move out, the landlord or property manager will inspect the apartment. They will check:
Based on this inspection, they will decide how much of the Shikikin to return to you. If the place is in good condition (normal wear and tear is okay), you will probably get most of it back.
However, if there is damage or the apartment needs deep cleaning, the costs will be taken from your Shikikin. You will receive the rest.
Here are some common things that landlords deduct from Shikikin:
If you clean the apartment carefully and don’t damage anything, your chances of getting a full refund are much higher.
In Japan, the idea of being respectful and responsible is very strong. Returning the apartment in good condition is part of showing that respect.
If you believe that too much money was taken from your Shikikin, you can ask for a detailed explanation. Sometimes landlords charge for things that are not your responsibility.
You can also ask for help from a local consumer center or your embassy if you cannot resolve the issue.
Renting an apartment in Japan involves some extra costs that may be unfamiliar if you're from another country. Shikikin and Reikin are two important parts of that process.
To sum up:
By understanding these concepts, you can plan your budget better and avoid surprises when you move in or move out. Always read your contract carefully and don’t be afraid to ask questions. Renting a home in Japan can be a smooth and respectful experience if you know what to expect.
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