Key Money vs. Deposit vs. Guarantor Fee: What's the Difference? (2026)


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The first time you see a rent cost breakdown in Japan, terms like reikin (礼金), shikikin (敷金), and guarantor fees can all sound similar — but they work very differently, and knowing the difference matters for how much you can get back later.

What Is Reikin (礼金)?

Reikin literally means "thank-you money" paid to the property owner. It's non-refundable, usually worth 1–2 months' rent, and exists mostly as a tradition rather than any kind of financial protection.

What Is Shikikin (敷金)?

Shikikin is a security deposit. It's also typically worth 1–2 months' rent, but unlike reikin, shikikin can be partially or fully refunded when you move out, minus the cost of repairing any damage beyond normal wear and tear (経年劣化, which is considered normal and not the tenant's responsibility).

What Is the Guarantor Fee (保証料)?

This is different again — a guarantor fee is paid to a guarantor company (保証会社) if you don't have a personal Japanese guarantor. It's usually around 50–100% of one month's rent upfront, plus a smaller annual renewal fee. This is also non-refundable, not a deposit.

Quick Comparison

Item Refundable? Purpose
Reikin (礼金) No "Thank-you money" to the owner
Shikikin (敷金) Partially/fully Damage deposit
Guarantor fee (保証料) No Payment for guarantor company service

Add them all up (reikin + shikikin + guarantor fee + agent fee), and move-in costs can easily reach 5–6 months' rent before you even get the keys.

How to Cut These Upfront Costs

Before giving up on the idea of moving because of these upfront costs, there's a property network specifically designed to skip most of the items above. Village House is one example, with 1,000+ properties across Japan managed directly by a single company:

  • No reikin, shikikin, agent fee, or renewal fee
  • No guarantor fee required — the company itself takes on that role
  • Rent starting from around ¥20,000/month at many locations

If you're tired of watching upfront costs balloon because of reikin and guarantor fees, check available units through this link.

Check Village House Apartments Without Reikin & Guarantor

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FAQ

Q: Do all apartments in Japan require reikin?
A: No. Especially in cities with tight competition for tenants, or properties that have been vacant a while, more listings are marked "reikin nashi" (礼金なし, no key money). But shikikin and guarantor fees are still common on most standard properties.

Q: If shikikin is refundable, how much usually comes back?
A: It depends on the unit's condition when you move out. Damage from normal use (経年劣化) can't legally be deducted from shikikin, but damage beyond that (like cigarette stains or holes in the wall) can be.

Bottom Line

Reikin, shikikin, and guarantor fees are three separate cost items that all add to your upfront burden when renting in Japan. If you want to significantly cut those move-in costs, a no-guarantor, no-reikin property network like Village House is one of the more realistic options.

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