Key Money (礼金) in Japan, Explained

What Is Reikin (礼金)?

Reikin (礼金), literally "gratitude money," is a one-time, non-refundable payment you hand to your landlord when you sign a lease in Japan. It is not a deposit, not rent, and not a fee for any specific service — it is essentially a gift for the privilege of renting the unit. Once paid, you never see it again, whether you stay one year or ten.

The standard amount is around one month's rent, though listings vary from zero up to two months depending on the city, the building, and how competitive the local rental market is. Reikin is charged in addition to your first month's rent, the security deposit, agency fees, and often guarantor company fees — which is why move-in costs in Japan commonly reach four to five times the monthly rent. If you have not yet run the numbers for your own budget, the move-in cost calculator will total reikin alongside every other upfront fee so there are no surprises.

Where Reikin Came From

Reikin dates back to the housing shortages after World War II, when Tokyo and other major cities had far more renters than available units. Landlords held nearly all the negotiating power, and tenants began offering a cash "thank you" simply to be chosen over other applicants. Some historians trace the custom further back, to Edo-period gift-giving practices between tenants and property owners. Either way, the payment stuck around long after the postwar shortage eased, and it became a standard — if unpopular — part of Japanese leasing culture, particularly in Tokyo, Osaka, and other high-demand areas.

Reikin vs. Shikikin: Know the Difference

Reikin is frequently confused with shikikin (敷金), the security deposit, but the two work in opposite ways:

• Reikin (礼金) — non-refundable, paid to the landlord as a lump sum, never returned regardless of how you leave the apartment.
• Shikikin (敷金) — refundable, held against unpaid rent or damages, and returned (minus any deductions and, often, a standard cleaning charge) when you move out.

A listing that charges "1 reikin, 1 shikikin" is asking for two months of rent upfront on top of your first month's rent — one you'll get back in some form, one you will not.

Finding 礼金ゼロ (Zero-Key-Money) Listings

Zero-key-money listings, advertised as 礼金ゼロ or 礼金なし, have become far more common as landlords compete for tenants in a market where fewer renters are willing to accept the old norms. According to a 2025 LIFULL HOME'S survey, roughly 42% of Tokyo listings above ¥200,000 in monthly rent now advertise zero key money — a sharp shift from a decade ago, when reikin was close to universal at that price point.

To find these listings:

1. Use the filter checkboxes on major listing sites (SUUMO, LIFULL HOME'S, Apaman) for "礼金なし" or "敷金・礼金なし."
2. Ask your leasing agent directly — some zero-reikin units aren't tagged clearly in search filters and only show up when you ask.
3. Compare buildings, not just units — reikin policy is usually set at the building level by the owner, so one building may be consistently reikin-free while the one next door is not.

For a deeper look at buildings that skip both reikin and shikikin entirely, see our guide to no-key-money, no-deposit apartments.

The Catch: Zero Key Money Isn't Always a Better Deal

Landlords rarely give up a month's rent for nothing. When you see 礼金ゼロ, watch for how the cost resurfaces elsewhere:

• Slightly higher rent. Some owners bake the equivalent of a partial key-money payment into the monthly rent over the life of the lease, so the "savings" are spread out rather than eliminated.
• Shorter free-rent periods. Frii rento (フリーレント), a free month or two of rent offered as an incentive, is often shorter or absent on reikin-zero units compared to otherwise identical units that do charge reikin.
• Fees relabeled, not removed. The same money can reappear as a higher cleaning fee (クリーニング代), a "key exchange fee" (鍵交換費用), or a steeper lease renewal fee (更新料) every one or two years.
• Screening bias. Because reikin-paying tenants are more profitable, some landlords and agents quietly prioritize applicants willing to pay it — a relevant factor if you're already facing extra scrutiny as a foreign renter without a Japanese guarantor. See our guide to guarantor companies for foreign residents for how that screening process works.

None of this means zero-key-money listings are a trap — many are genuinely cheaper overall, especially in the current market where competition among landlords is real. It just means the headline "礼金ゼロ" is a starting point for negotiation, not the end of it. If reikin is listed, it's also often negotiable, particularly outside peak moving season (January–March); see our tips on negotiating initial fees before you sign. And if you still have questions about how these costs stack together, check the move-in cost FAQ for quick answers.