Real estate glossary

Security deposit(Shiki-kin)

Security deposit is an amount of money that a new tenant gives as a security against default of payment of rent or recovery expenses to a landlord.
In many cases, actual expenses are subtracted from the security deposit and the balance is returned to the tenant after moving out if nothing has been damaged at room.

Key money (Rei-kin)

Key money is the rate of the once payment that tenant pays as “reward” to a landlord when moving in. Key money is not returned to the tenant when moving out unlike deposit.
The amount of key money is normally one to two months’ rent. Recently, there are many apartments which do not request payment of key money.

Management expense (Kanri-hi/Kyoeki-hi)

These expenses are used to set up, to maintain and to manage common facilities.
In many cases a tenant pays this expense with rent.

Agency fees

An agency fees is charged from the real estate agency for the conclusion of a tenancy agreement. In general, the charge of an agency fee is one month’s rent.

Guarantor Company

Guarantor Company provides foreign resident’s services of serving as guarantor to the foreign tenant. In general, it is required to pay a guarantor fee which is 50%~100% of the one month’s rent.
Expenses might be incurred when renewing guarantor contracts.

Damage insurance

It is mostly compulsory to join the damage insurance to rent an apartment.
This damage insurance covers not only fire but also the occurring leakage accident.

Restoration duty (Genjyo-kaifuku)

If you accidentally put a hole into the wall or broke facility of properties or stain a wallpaper of your apartment you rent, so when you moved out you have to repair it for due to your obligation to restore it.
The recovery expenses (except for the attribute of normal use) are subtracted from the security deposit when moving out.

Room cleaning fee

The money is paid to the landlord for the expense of professional cleaning service when you move out. This cleaning fee is different from recovery fee, which is subtracted from the security deposit separately.

Checking out the properties

hecking out is important to prevent the problem after entering that actual state of a room might be different from sales material.

actual state

A room is received as actual condition without applying some treatments.

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