What is Reikin and Shikikin? A Foreigner's Guide to Japan's Confusing Move-in Fees

If you've ever looked at an apartment listing in Japan and been surprised by how much money you need upfront — far more than just the first month's rent — you're not alone. Move-in costs in Japan can easily add up to 4–6 months' worth of rent once everything is included, and two of the biggest, most confusing line items are reikin (礼金)and shikikin (敷金).

Understanding what these are — and how they differ from a typical Western-style security deposit — will help you budget correctly and avoid any unpleasant surprises when you sign a lease.

Shikikin (敷金): The Security Deposit

Shikikin is the closest thing to what many renters abroad would recognize as a security deposit. It's typically 1–2 months' rent**, paid upfront and held by the landlord for the duration of your tenancy.

Here's what makes it different from deposits you may be used to elsewhere:

It's meant to cover damage and unpaid rent, similar to deposits in many other countries.
It also often covers standard cleaning and restoration costs (原状回復) when you move out — even if you leave the apartment in good condition. Japanese rental custom generally treats a certain amount of wear-and-tear restoration as the tenant's responsibility, and this is usually deducted from your shikikin automatically.
You may not get all of it back. Unlike some countries where a deposit is fully refundable barring damage, it's common in Japan to have a portion withheld for standard cleaning fees, even with no damage at all. This should be spelled out in your contract.

Reikin (礼金): The "Key Money" You Never Get Back

Reikin is where things get culturally interesting — and where a lot of new renters feel blindsided. Reikin literally translates to "gratitude money," and it is exactly what it sounds like: a non-refundable gift to the landlord, simply for the privilege of renting their property.

It's typically 1–2 months' rent, paid at the same time as shikikin.
You will never get this money back — not at move-out, not ever. It's not a deposit; it's essentially a fee.
The custom traces back to post-war Japan, when housing was scarce and tenants would offer landlords a "thank you" payment to secure a lease. The tradition has stuck around in many areas, even though housing supply today looks very different.

Shikikin vs Reikin: The Key Difference
Shikikin (敷金) Reikin (礼金)

Refundable? Partially — minus damage/cleaning costs/ No, never
Purpose? Deposit against damage or unpaid rent/ Traditional "thank you" payment to landlord/
Typical amount 1–2 months' rent
When paid? At move-in / At move-in /

Why This Matters for Your Budget

If you're renting a ¥100,000/month apartment with 1 month shikikin and 1 month reikin, that's already ¥200,000 on top of your first month's rent — before agency fees, guarantor company fees, fire insurance, and key exchange fees are even factored in. Total move-in costs in Japan commonly land somewhere around 4–6 times the monthly rent, and reikin/shikikin are usually the two largest single contributors.

Good News: Reikin Is Becoming Less Common

The custom of reikin isn't universal anymore. In recent years, especially in competitive rental markets and among landlords targeting younger renters or foreign tenants, **"reikin nashi" (礼金なし / no key money)listings have become increasingly common. Some property management companies have dropped reikin entirely as a way to make their listings more attractive.

When apartment hunting, it's worth specifically filtering or asking for **礼金なし (reikin nashi) or 敷金・礼金なし (no deposit, no key money) listings if you want to minimize upfront costs — just be aware that these properties sometimes have a slightly higher monthly rent, or additional cleaning/key fees, to make up the difference.

The Bottom Line

Shikikin is a deposit you might partly get back; reikin is a fee you'll never see again. Knowing the difference — and budgeting for both — will help you avoid sticker shock when you're ready to sign a lease in Japan. And if minimizing upfront costs matters to you, don't be afraid to specifically search for reikin-free listings; they're more common than ever.