Where does Key Money(Reikin) come from?

When you move in Japan, you will realize how annoyingly Japanese real estates get money from you. Cleaning fee, Brokerage Fee, Renewal Fee, or Guarantee Fee mostly are equivalent to 100 % of the monthly rent. But one of the most hated fee would be a key money. It can be referred to a gift money, which is non-refundable" to a landlord who rents out a room to you. Where does Key money come from? 

It dates back to the Kanto Earthquake. The huge earthquake devastated most area of Tokyo so landlords were in an enviable position of choosing who they rented their property to.

Many people would offer a small payment to express gratitude for letting you live on their property (Reikin literally means ‘gratitude money’) to win the favor of the landlord.

According to a static, the country now has about 62 million housing units of which 14% are unoccupied in 2019, the Japanese rental market and its landlords like to preserve this tradition. Landlords can still charge up to 3 months key money for apartments in the more up market areas of Tokyo.

So if you find a key money in the room description, when you look for a place to rent. That means landlords try to get 1 month extra fee for nothing. But luckily we starts to get room options to avoid dreaded fee. If you are looking for properties, visit our site. https://sharero.co