Now that Japan has reopened its doors to international students and workers, many people are preparing to start their new lives here. While some choose to live in dormitories provided by schools or companies, a lot of people prefer to rent their own apartments. So, what should you watch out for when renting in Japan? What kind of issues might come up? And what exactly are “gift money” and “shikikin”? Let’s break it down together.

Gift Money and Shikikin

Let’s start with two terms you’ll hear a lot during your apartment search: “gift money” and “shikikin”.

Shikikin

Shikikin is basically a security deposit. Depending on the landlord, it could be one or even three months’ rent. When you move out, a portion—or all—of this money may be returned to you after deducting any cleaning or repair fees.

However, if the apartment is badly damaged (smoke stains, ripped wallpaper, scratched flooring, etc.), it’s quite likely that most or all of the deposit will be used for repairs.

Keep in mind that some landlords don’t return the deposit at all, so always double-check the contract to see if a refund is mentioned.

Gift Money

Gift money, or “reikin”, is a unique part of Japanese rental culture. It’s usually equivalent to one month’s rent and is given to the landlord as a non-refundable “thank you” for letting you rent the property.

Unlike shikikin, this money won’t come back to you—ever. If you’d rather avoid this extra expense, look for listings that state “no gift money required”. Many apartments now offer this option.

Basic Steps for Renting in Japan

In the past, you had to visit Japan, inspect the apartment in person, and then sign the lease. Nowadays, more and more properties support remote contract signing. While still not widespread, it’s possible to line up your housing before arriving—no need for temporary hotels or last-minute searches.

But let’s focus on what usually happens once you arrive in Japan:

• Visit the neighborhood and check out real estate offices. You’ll often see property ads displayed on windows and billboards.
• Alternatively, browse Japanese rental websites like SUUMO, HOME’S, or at-home to find listings in your desired area. You can filter by commute time, price, and more.
• Contact the agent, schedule a viewing, and visit the apartment.
• If you like it, proceed to the contract signing. You’ll then pay your initial fees and schedule a move-in date. You’ll typically receive your keys just before or on that day.

If you’re working with a good agent, they’ll guide you through each step—so don’t stress too much!

Do You Need a Japanese Guarantor?

Here’s one major hurdle: many landlords require you to have a Japanese guarantor. This person would be responsible for rent if you default or cause damage and disappear.

Usually, the guarantor must be a Japanese citizen or a permanent resident. If you can’t find one, you may be restricted from renting certain properties. Be sure to confirm this requirement with your agent or landlord early on.

Things to Know Before Moving In

Initial Costs

Once the lease is signed, you’ll need to pay a “first deposit”, which usually includes the following:

• Shikikin (security deposit)
• Gift money
• First month’s rent
• Brokerage fee
• Insurance premiums
• Key handover and service fees

Altogether, you’re looking at 4–5 months’ worth of rent upfront. Note that most landlords don’t accept credit cards—you’ll need to pay via bank transfer or cash.

Take Photos

Before moving in, take photos of every corner—especially any stains, cracks, or scratches. This protects you when it’s time to move out and helps avoid unfair charges.

Furniture and Utilities

Most Japanese apartments are completely unfurnished, except for basic air conditioning. You’ll need to buy your own bed, fridge, washer, lighting, kitchen gear, and more. Online stores like Nitori let you schedule delivery for your move-in date, which is super helpful.

Also, don’t forget to set up your utilities—electricity, gas, and water are not turned on by default. Contact the relevant companies in advance to activate them the day you move in.