KEY MONEY ?

[Thanh Binh]

Have you ever heard the phrase "key money"? For those who just know about this, this word means the money you have to give to the host before you move to their apartments.
I write this in the "Japanese Culture" because I believe this is kind of their culture (in business?). What do you think?

Normally in other countries, we only need to pay the house rent monthly or annually, right? But in Japan, the key money is a must (99% of house rent fee including this). I asked my friend (who works in the real estate sector) why this is so important. In our countries, we might buy some fruits or a present for the host but in Japan, we do not or ever meet the host. The key money is similar to the present show your respect to the host?

But, the key money is so much expensive that first I thought it included a few months' house rent @@. BUT NO! I paid 220,000yen for only key money without any house rent ) all off my friends had the same experience...they had to pay a lot of money before moving into the house.

I really do not know why the hosts asked for that much for the key money? There are any reasons behind this? Did you ever pay so much "key money" for renting??

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[RanMa1/2]

I'm not sure if it's an Asian thing or it's just cultural but where I live we do pay an "advance" and a "deposit" before moving in, maybe somewhat similar to key money. My dad owns some apartments, like houses not just flats and part of his contract with the tenants is 2 months advance and 2 months deposit. That's 4 months in total of rent to be paid before moving in. It's more like a guarantee that you can pay for the next months. The 2 months of deposit covers repairs after moving out so if the landlord can see that there has been some damage in the rental, he puts value in all the repairs, adds them up and usually it would cover whatever deposit he asked for. If everything looks well-kept and there are no issues, the deposit is returned to the tenant in full which would allow the tenant to have enough cash to pay for the deposit fo the next rental he'll be moving into. Sometimes, the advance too is not really an advance like used up right after moving in because it's going to be used up before moving out. So, the tenant has to inform the landlord, say in January so that they can still stay until March. Other rentals that are waaay expensive like almost $1k per month require the tenant to have a checking account and post dated checks to cover a year of rental and are submitted before moving in which means the tenant should sign a 1 year contract. It normally also includes a particular amount for advance and deposit still.

[Thanh Binh]

I am from an Asian country too and my family owns some apartments for rent but we have never asked for the money before people move in...Normally, we just take one month's rent before the next month;'<. And in Japan, the "key money" is not returned. The money return is only the "cleaning fee" after you live there (in case everything in the house in good condition). I think its really expensive thou

[Yuriyuri]

I have always thought that key money (reikin) is stupid too.
I know a friend who paid 80,0000 yen at once just to move into a new house. They make it so hard in Japan to move into new places.
I think this culture is like many other in Japan. Key money started after postwar as there were little housing available. So, people decided to give the landlord a little extra money to thank them for letting people and their family stay in the house.
So, that's how the key money gesture became part of the "culture".
But if you ask me, there is no lack in housing in Japan currently, and it feels like reikin culture is only an excuse for landlords and realtors to get more money out of their clients.

[Thanh Binh]

Yes, Yuriyuri . In fact, Japan is no lack of housing at all. There are more and more apartments with various kinds being build day by day. Japanese people understand that the labor force and students from other countries coming in a rapid rate. My friend who works in this sector really understands that there are many apartments for renting. I really want to move out of my apartment but the "key money" still makes me so considering right now :'(.

[Yagami]

This sounds like they are taking advantage of the good status that they have when it comes to real estate. Researching a bit about Japanese Key Money seems to have dated back in their early centuries where landlords only have limited properties they can rent to, so their subjects would often give them gratitude money for letting them stay in their landlords' place. Such tradition was kept til now and who wouldn't want to? That's like an extra income on top of the original payment for rent. No one seems to mind that it's now made mandatory for some apartments in Japan.