10 Japanese rental contract terminologies you need to know
When you sign a contract in Japanese, there might be some real estate related terminologies and jargons that you do not understand, even in English. Planning to rent an apartment in Japan as foreigner? Here are some Japanese apartment contract terminologies explained in a way that is easy to understand. When you sign a contract as it is without knowing some basic terms, you may be charged an unexpected fee during your stay or when you move out. Here are some commonly used words in Japanese rental contracts, explained simply for your convenience!
①Deposit／敷金 （shikikin）
The money that you pay to a landlord when you move into the apartment. It is collected in case the you cannot pay the rent. At the end of the rental contract, if there is no unpaid rent or significant damage, it is usually refunded.
②Key money／礼金 (reikin)
The money that you pay to a landlord when you move into the apartment. Key money is customary and has no legal basis. Usually paid to landlords in case you want to negotiate something, like having a pet or other adjustments. It is usually not refundable.
③前家賃／1st month rent (maeyachin)
In case you move into the apartment later than expected, you still have to pay from the move-in date written on the contract. Since the contract is binding, please check the real move-in date written in the contract.
④Guarantor company／保証会社(hosyou-gaisya)
In the past, in order to rent a property, it was common to set up a “guarantor”, an individual who had to pay the rent if the lessee could not pay the rent. However, there are increasing cases of guarantor companies that will take the place of individual guarantor. If the contract requires a contract with a guaranteed company, you must make a contract.
⑤Household property insurance／家財保険(kazai-hoken)
Household property insurance is insurance for damage compensation in the event of a fire disaster. It is usually mandatory for renters to have such insurance when they want to sign an apartment rental contract.
⑥Key exchange／鍵交換(kagikoukan)
This is the money you need to pay to install a new lock and key to the apartment you are moving in. When a former renter moves out, there is a possibility that he/she makes a duplicate key, so he/she can enter the room again. In order to prevent such thing from happening, landlords need to install new locks and key every time a renter moves out.
⑦Cleaning fee／清掃料(seisouryou)
For rental properties, the cost of receiving a cleaning service from a specialized company is called the cleaning fee. Cleaning companies use special tools and chemicals to clean the room to a level where the next resident can move in comfortably. In some cases, you will have to pay a cleaning fee when you move in.
⑧Disinfectant fee／消毒料(syoudokuryou)
This is the money that you need to pay to clean and disinfect the water around the kitchen, washroom, bathroom, toilet and other wet area of the property. This fee can be paid either when you move in or when you move out of the property.
⑨Penalty／違約金 (iyakukin)
In case if you need to cancel the contract halfway due to the certain circumstances, it will be considered as breach of contract. Each property has different penalty rules from each other, so it is important to check the contents of the contract properly.
⑩Restoration cost／原状回復費用(genjyou-kaifuku-hiyou)
This is a repair cost for returning the rented room to its original condition when moving out. This obligation is for the parts that have changed due to the intention or negligence of the renter. Changes due to natural consumption and deterioration are not included.
