The average initial moving cost is "◯ months' rent + moving expenses + furniture and appliances."
The initial costs required when moving include not just the rental contract fee, but also moving expenses and the cost of furniture and appliances needed for your new life. The general market price is around 4 to 5 months' rent, plus moving expenses and the cost of purchasing furniture and appliances.
Here, we will organize the elements that make up the initial costs and the points that determine whether your budget is sufficient or not.
Three categories of initial costs
The initial costs of moving can be broadly divided into three categories: costs associated with the rental contract, costs associated with moving, and costs associated with preparing for your new life, such as furniture and appliances.
Rental contract costs include the security deposit, key money, agency fee, advance rent, guarantee fee, fire insurance premium, etc., and generally amount to four to five months' rent in total. In addition, you'll need to pay around 10,000 to 100,000 yen to the moving company, and the cost of purchasing basic furniture and appliances such as a refrigerator, washing machine, and bed will cost tens of thousands to hundreds of thousands of yen. The total of these amounts represents the total initial costs you'll actually need.
A typical pattern where people are divided on whether "300,000 yen is enough"
Whether 300,000 yen is enough to cover the initial moving costs will vary greatly depending on your conditions.
For example, if you choose a property with no key money and a discounted brokerage fee, and use a property with furniture and appliances or a shared house, you may be able to keep the cost under 300,000 yen. On the other hand, if you are moving in a city with higher rent, during the peak season (February to April), or if you are purchasing all new furniture and appliances, 300,000 yen will likely not be enough.
To keep initial costs down, it is important to organize the property conditions, moving date, and priorities of purchases.
What are "initial costs"? Money that must be paid when signing a rental contract
When moving into a rental property, the "initial costs" are a general term for the expenses paid in one lump sum at the time of signing the contract. Typical examples include the security deposit, key money, advance rent, and brokerage fees, and as a general rule, these must be paid in cash or in a lump sum before or after moving in. Each item has a different nature and chance of being refunded, so correctly understanding the contents will help you avoid unnecessary payments.
Deposit: Money that can be returned
A security deposit is money that you deposit with your landlord to cover any unpaid rent or restoration costs when you move out. The standard rate is one month's rent, but depending on the area and property, it may be set at two months' rent or more. As a general rule, if you have no outstanding rent or repair costs when you move out, the remaining amount will be returned.
However, in many cases, house cleaning fees and repair costs are deducted, so you may not get the full amount back. There are also an increasing number of properties that do not require a security deposit, but in that case, you should be careful as you may be charged a large amount when you move out.
Key money: Non-refundable money
Key money is money paid to the landlord as a "thank you" for renting the property, and is not returned when you move out. The average amount is around one month's rent, but in recent years, the number of properties with no key money has been increasing. In urban areas and areas with intense competition, it is not uncommon for properties to not require key money in order to secure tenants.
If you want to keep initial costs down, whether or not there is a key money requirement is a major consideration. However, properties without key money may have slightly higher rents, so it is important to compare the total cost.
Advance rent/pro rata rent: The amount will change depending on the month of move-in
Advance rent is the cost of rent for the month you move in and the following month paid in advance when signing the contract. If your move-in date is in the middle of the month, it is common to pay the rent on a pro rata basis plus the rent for the following month in one lump sum. For this reason, the initial costs may appear higher if you move in at the end of the month than if you move in at the beginning of the month.
Management fees and common area fees must also be paid in advance, so be sure to check the total amount on the estimate. You may be able to reduce your initial costs by tens of thousands of yen just by adjusting your move-in date.
Brokerage fees: the difference between maximum, discounted, and free
The brokerage fee is a success fee paid to the real estate company, and the legal limit is set at one month's rent plus consumption tax. However, you don't necessarily have to pay the full amount, and there are properties where the fee is half price or even free.
In recent years, the number of real estate companies that handle landlord-paid or in-house properties has increased, and it is common for them to offer no brokerage fees. If you want to keep initial costs down, it is important to check in advance not only the property conditions but also "how much the brokerage fee will be."
Fire insurance premiums: Items that are likely to be mandatory
Fire insurance is insurance to prepare for troubles such as fires and water leaks, and is required for many rental contracts. The average price is around 15,000 to 20,000 yen for two years.
You will often be introduced to insurance designated by the real estate company, but in some cases you may be able to choose your own insurance depending on the conditions. If there is not much difference in the coverage, you may be able to reduce your initial costs by reviewing your insurance premiums.
Rental guarantee fee: Be careful not to overlook the initial guarantee fee + renewal fee
A rental guarantee fee is a fee paid when using a rent guarantee company, and is almost always required if you do not have a guarantor. The average initial guarantee fee is around 30-50% of the rent, and in some cases there may be an additional renewal fee every one or two years.
It is important to understand not only the initial cost but also the future running costs. Conditions vary depending on the guarantor company and plan, so be sure to check before signing the contract.
Key replacement fee, disinfection fee, 24-hour support: Optional/negotiable expenses
Key replacement fees, disinfection fees, and 24-hour support fees are additional costs set by the property and management company. The average cost is around 10,000 to 30,000 yen, but in many cases these are not mandatory and can be negotiated or removed.
In particular, "disinfection fees" and "support costs" are often optional, so if they are included in the estimate, be sure to check the details. If you want to keep initial costs down, it is important to check each of these items one by one.
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Average moving costs
When moving, in addition to the initial costs of signing a rental contract, there are also costs for the "moving process itself." Moving costs vary greatly depending on the time of year, distance, and amount of luggage, and on top of that, cleaning fees and miscellaneous expenses when you move out can add up, making expenses often higher than expected.
Here we will explain the average costs directly related to moving and points to note.
Moving costs: There is a big difference between normal and peak periods
The average moving cost for a single person during the normal season (May to January) is around 30,000 to 60,000 yen, and for a family move it is around 80,000 to 150,000 yen. However, during the busy season from February to April, demand is concentrated, so the cost can jump to 1.5 to 2 times more even under the same conditions. Reservations are particularly difficult to make in late March, and if you specify a desired date, additional fees may be incurred.
If you want to keep moving costs down, it is effective to avoid busy periods, choose weekdays or move without a specific time, and get competitive quotes from multiple companies.
Moving-out costs: Cleaning fees and restoration costs
Moving-out fees are the costs of restoring the room to a state where the next tenant can use it. Generally, a house cleaning fee will be charged, with the average cost for a studio apartment being around 20,000 to 40,000 yen. In addition, if there is damage to the wallpaper or scratches on the floor, you may be charged repair costs to restore the room to its original condition.
However, as a general rule, the tenant is not responsible for any deterioration caused by normal use. In order to avoid any issues when you move out, it is important to check the condition of the property when you move in and keep photos.
Subtle additional costs: cardboard boxes, bulky waste, parking fees, gifts, etc.
When moving, there are many small expenses that add up in addition to the moving and removal costs. Purchasing additional cardboard boxes and packing materials can cost several thousand yen, and you may also have to pay for bulky waste collection to dispose of unwanted items.
You may also have to pay for truck parking and coin parking on the day of the move. Furthermore, if you prepare a gift for your neighbors, you can expect to spend several thousand yen. It's important to create a budget that includes these "little expenses."
Furniture, appliances, and daily necessities: Points that will increase your budget when preparing for a new life
Among the initial costs of moving, the cost of purchasing furniture, appliances, and daily necessities is often overlooked. While rental contract fees and moving costs are easy to figure out in advance, expenses can easily add up if you buy everything you need for your new life all at once.
Especially if you are starting to live alone, the key to keeping initial costs down is to organize the bare necessities and what can be put off until later.
Minimum household appliances required
The basic four home appliances you'll need for a new life are a refrigerator, washing machine, microwave, and lighting. If you buy all of these new, the average price will be around 80,000 to 150,000 yen in total. Many properties come with air conditioners installed, but if one isn't installed, you'll need to pay an additional tens of thousands of yen.
You don't need to buy high-performance models right from the start, and by keeping prices within a range that doesn't disrupt your lifestyle, it will be easier to control your overall initial costs.
Furniture, bedding, curtains, and other items that are "necessary from day one"
Among the furniture and living items, bedding, curtains, tables, storage items, etc. are essential from the first day you move in. Curtains in particular are essential for security and privacy, and you need to prepare them in advance to fit your window size. Since life would be disrupted without a bed, futon, and lighting, these are high priority items.
On the other hand, it's okay to buy sofas, TV stands, etc. later. It's important to assess your necessity before purchasing.
How you buy makes a difference
The cost of purchasing furniture and home appliances can vary greatly depending on how you buy them. If you don't insist on buying new items, but instead use second-hand items, recycle shops, or flea market apps, you may be able to cut your costs in half or more.
Additionally, you can significantly reduce your initial costs by using furnished properties and rental services. When moving, it's better to be mindful of "using only what you need" rather than "buying everything" to make your new life more comfortable.
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How to calculate the initial costs
To accurately understand the initial moving costs, it's important to organize them using a formula rather than relying on intuition. Breaking down the costs into rental contract fees, moving fees, and furniture and appliance fees will help you avoid going over budget. Also, if you don't read the estimate correctly, you may end up paying unnecessary costs.
Here we will explain the basic calculation method for initial costs and points to note.
Rental contract calculation formula
The initial costs for signing a rental contract can be easily understood by using the following calculation formula.
- Initial costs = Deposit + Key money + Brokerage fee + Advance rent (including management fee) + Guarantee fee + Fire insurance fee + Other costs
Generally, this total is often four to five months' rent. It's important to include not only the rent but also management fees and common area fees in the calculation; overlooking this can result in a discrepancy of tens of thousands of yen. The amount of advance rent varies depending on the move-in date and contract start date, so be sure to check whether it is calculated on a pro rata basis.
Common pitfalls in quotes
Initial cost estimates sometimes contain items that are difficult to understand. Typical examples include "disinfection fees," "24-hour support fees," and "administrative fees," which are automatically included even though they are not required.
In addition, fire insurance premiums and guarantee fees may be set higher than the market rate. By checking the necessity and appropriateness of each item, rather than just looking at the total amount, you may be able to reduce the initial costs by tens of thousands of yen.
When is the payment due?
In most cases, initial rental fees are paid in a lump sum "after applying for a rental property and before signing the contract." In many cases, the fees are charged after the screening process is completed, and the contract cannot proceed unless the payment is made by the specified deadline.
Moving expenses and furniture and appliance costs will be incurred before and after moving in, so it is important to organize the overall payment schedule. If you will not be able to prepare the funds in time, be sure to discuss payment methods and deadlines as soon as possible.
[By rent] Initial cost simulation
The initial costs of moving vary greatly depending on the rent. Since many items, such as the security deposit, key money, and agent fees, are calculated based on the rent, the higher the rent, the higher the total initial costs.
Here, we will simulate how much initial costs will actually be required using examples where the rent is 30,000 yen, 50,000 yen, and 70,000 yen.
Rent 30,000 yen: Estimated if you keep it to a minimum
If you rent a property for 30,000 yen, there is no deposit or key money, and you take advantage of a discount on the brokerage fee, the initial costs for signing the rental contract will be approximately 100,000 to 150,000 yen.
Even including advance rent, guarantee fees, and fire insurance premiums, it is relatively easy to keep costs down, and if you keep moving costs to a normal period, the total can be around 200,000 to 250,000 yen in some cases. By limiting furniture and appliances to a minimum, or choosing a property that comes with furniture and appliances, it is easy to aim for initial costs of less than 300,000 yen.
Rent: 50,000 yen: Average case guideline
For a property with a rent of 50,000 yen, assuming typical conditions such as a one-month security deposit, one-month key money, and one-month brokerage fee, the rental contract costs alone will be around 200,000 to 250,000 yen. Add in moving expenses of 50,000 to 70,000 yen and furniture and appliance purchase costs of 50,000 to 100,000 yen, and the total initial costs will be around 300,000 to 400,000 yen.
If you don't carefully consider the conditions, the rent is likely to exceed 300,000 yen, so it is effective to take advantage of properties with no key money or free rent.
Rent: 70,000 yen (estimated for urban areas)
For urban properties with a rent of 70,000 yen, the initial costs are quite high. With one month's deposit, key money, and agent fees, it's not uncommon for the rental contract costs alone to be around 300,000 yen. Add in moving costs and furniture and appliance costs, and the total can reach 400,000 to 500,000 yen or more.
If you want to keep initial costs down, it is important to consider properties with no key money, rentals with furniture and appliances, and adjusting your move-in date.
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[By number of people] How do initial costs differ depending on whether you live alone, with a partner, or as a family?
The breakdown and burden of initial moving expenses will vary greatly depending on the number of people living in the apartment. While rental contract costs depend on the floor plan and rent, moving expenses and the cost of purchasing furniture and appliances tend to increase as the number of people moving in increases.
Here we will explain the characteristics and points to note regarding initial costs for people living alone, with two people, and with families of three or more people.
Living alone: Furniture and appliances are more expensive than the contract fee
When living alone, people often choose properties with relatively low rent, such as one-room apartments or one-room apartments, so the rental contract costs themselves tend to be low.
On the other hand, you will need to purchase a refrigerator, washing machine, microwave, bed, etc. from scratch, and the cost of purchasing furniture and appliances will account for a large portion of the initial costs. Especially for new graduates and students moving for the first time, the burden of living arrangement costs can be greater than the contract fee, so it is effective to use properties with furniture and appliances or rental services.
Living together: Moving costs tend to rise
When two people move in together, they often choose a larger floor plan such as a 1LDK or 2DK, which means higher rent and therefore higher security deposits, key money, and agency fees. In addition, the amount of luggage will be significantly greater than when living alone, which means moving costs tend to be higher.
While being able to share furniture and appliances is an advantage, the overall moving costs tend to increase as the moving company's truck size and the number of workers increase. It is essential to get quotes from multiple companies.
Three or more people: Differences will be made depending on the floor plan, initial purchases, and number of moving trips.
When moving with a family of three or more, you will need a 2LDK or larger layout, which will significantly increase the rent. As a result, the initial costs will also tend to be high, based on the rent.
Additionally, the initial purchase costs increase due to larger beds, storage furniture, and home appliances. Moving can require multiple trucks, which can lead to cost differences. When moving with your family, the key to reducing costs is to coordinate your schedule and dispose of unnecessary items.
How to reduce initial costs
The initial moving costs are a mix of "must-pay" costs and "costs that can be reduced with some ingenuity." If you just accept everything at face value, it's not uncommon for the cost to end up being tens of thousands to hundreds of thousands of yen higher than the market rate.
Here, we will introduce specific ways to reduce initial costs by changing the items that are easy to cut, points that can be negotiated, and how to reduce initial costs themselves.
Search for properties with no deposit or key money
Properties with no security deposit or key money are a typical option that can significantly reduce the initial costs when signing a rental contract. Compared to properties where the security deposit and key money are one month's rent each, the difference can be more than 100,000 yen.
On the other hand, since there is no security deposit, you should be aware that in many cases you will be charged the actual cost of restoring the property to its original condition when you move out. Even properties with no key money may have rents set higher than the market rate. It is important to compare not only the initial costs, but also the total amount after moving in and moving out.
Reduce brokerage fees
By law, brokerage fees are capped at one month's rent plus tax, but you don't have to pay the full amount. Recently, an increasing number of real estate companies are promoting themselves as offering half-price or no brokerage fees. By choosing a company that handles properties managed by the company or properties paid for by the landlord, you can naturally keep brokerage fees down.
Also, if multiple companies are handling the same property, the fee may be reduced through negotiation. Be sure to check the fee conditions in the early stages of your property search.
Reduce your "advance rent" with free rent
Free rent is a contractual condition that provides free rent for a certain period of time.
In many cases, the first month's rent is free after moving in, significantly reducing the amount of rent you have to pay in advance. In particular, if you move in at the end of the month, you won't have to pay prorated rent plus the next month's rent, which can reduce your initial costs by several tens of thousands of yen. However, there may be penalties for early termination, so be sure to check the terms of the contract.
Check whether optional costs (disinfection, support, etc.) can be excluded.
Examples of items that are often not required, such as "disinfection fee," "24-hour support fee," and "peace of mind support," are included in the estimate. These can cost around 10,000 to 30,000 yen, and simply removing them can significantly reduce the initial cost.
Some real estate companies automatically include these items, so if you don't need them, check if you can delete them. The trick to avoiding unnecessary payments is to ask for an explanation for each item.
Lower moving costs by getting multiple quotes and adjusting your schedule
Moving costs vary greatly depending on the company, date, and time of day. It is not uncommon for prices to differ by tens of thousands of yen when comparing quotes from multiple companies.
You can also reduce costs by avoiding weekends, holidays, and mornings, and choosing weekdays and no designated time. If you have only a small amount of luggage, it is also effective to use a mixed-load service or a single-person package. Moving costs are one of the "costs that are easy to negotiate."
You can also choose not to buy furniture or appliances
If you buy all new furniture and appliances, the initial costs will skyrocket. Therefore, choosing not to buy anything from the start is also a viable option. If you choose a property that comes with furniture and appliances, you won't need to pay for them, and your move will be lighter.
Also, if you are only moving in for a short period of time, using a rental service can help you avoid unnecessary expenses. It is especially suitable for people living alone or who are planning to be transferred.
If you want to keep initial costs down, compare shared houses and furnished rentals.
For those who want to keep initial costs as low as possible, it is worth comparing not only regular rental properties, but also shared houses and rental properties with furniture and appliances.
In many cases, security deposits, key money, and agency fees are not required or can be significantly reduced, and initial moving costs can be reduced to a few tens of thousands to a hundred thousand yen. This makes it a viable option for short-term stays or those living alone for the first time.
Is it possible to pay in installments or in advance? The reality of payment methods
Since the initial moving expenses are a large sum, many people may be worried about whether they can pay in installments or advance the cost. In reality, payment methods vary depending on the real estate company and the service you use.
Not everything can be paid in installments, so it is important to understand realistic payment methods and points to note, and to create a reasonable financial plan.
The initial cost split is handled differently by the real estate company, credit card, and guarantor company
The possibility of paying the initial costs in installments varies depending on the payment destination. Payments to real estate companies are generally made in one lump sum, and installments are generally not possible. On the other hand, if the company accepts credit card payments, you can use the card company's installment or revolving payment options later.
Some guarantor companies also offer plans that allow you to split the initial guarantee fee in installments. However, not all costs are covered, so it is important to check in advance how much you can split.
Points to note about card splitting
While credit card installment payments are convenient, there are some things to be aware of. The biggest issue is the installment fee, and the more installments you make, the higher the total payment amount. Also, if you exceed your card's credit limit, you may not be able to make the payment, and the contract may not proceed.
The initial costs of moving can be expensive, so it's important to check your available credit limit in advance. Unreasonable installments can put a strain on your household budget, so make sure to create a repayment plan.
Priorities when you just can't get enough
If you are short on funds, it is important to clearly prioritize your payments. The first priority is the costs required for the rental contract; if you cannot pay these, you will not be able to move in. Next, moving expenses, and finally furniture and appliance purchase costs are realistically adjusted. Furniture and appliances are items that are easy to put off, as they can be replaced with second-hand or rental items.
By setting priorities, you can plan your move without any hassle.
FAQ
Many people have questions about the initial moving costs, especially those signing a rental contract for the first time. In particular, they are likely to be anxious about things like "by when do I need to prepare the money?" and "is the cost of the estimate really necessary?"
Here we will address some frequently asked questions and resolve any concerns you may have about initial costs.
When do I need to prepare the initial costs?
Initial rental fees generally must be paid between the time you pass the tenant screening and the time you sign the contract.
In many cases, the payment deadline is set as short as a few days to a week, and if payment is not made by the deadline, the contract may not proceed. For this reason, it is important to set aside a certain amount of budget when you start looking for a property.
Moving expenses and furniture and appliance costs are incurred over time before and after moving in, but rental contract fees are generally paid in one lump sum.
Are these costs on the estimate required? (Key replacement, disinfection, support, etc.)
In many cases, items listed in the estimate, such as "key replacement fee," "disinfection fee," and "24-hour support fee," are not required.
In particular, disinfection fees and support fees are often optional and may be able to be removed. On the other hand, there are some properties where key replacement fees are required for security reasons.
The important thing is not to accept everything as is, but to check the necessity of each item. Sometimes the initial cost can be reduced just by checking and negotiating.
I'm worried about the moving-out costs, but is it a loss to not have a security deposit?
Properties with no security deposit have the advantage of reducing initial costs when signing the contract, but many people are concerned about the costs they will have to pay when they move out.
In reality, even if there is a security deposit, cleaning fees and restoration costs are deducted, and in most cases the full amount is not returned. In properties without a security deposit, the actual costs are charged when you move out, so the total amount paid may not change.
The important thing is to check the contract terms and the scope of restoration in advance.
If you absolutely have to move during peak season, what should you cut back on?
During the busy season from February to April, rent and moving costs tend to be high, making it difficult to keep initial costs down. In such cases, it is important to prioritize cost reductions.
The first thing to consider is reducing brokerage fees and optional expenses, and then limiting the purchase of furniture and appliances to a minimum. Moving costs can be reduced by choosing a weekday and no specific time. The key is to decide your priorities, rather than trying to cut out everything.
summary
It's important to consider the initial costs of moving, including not only the rental contract fee but also moving expenses and the cost of purchasing furniture and appliances. The average cost is roughly 4-5 months' rent + moving expenses + living arrangement expenses, and depending on the conditions, it's possible to keep it under 300,000 yen. To achieve this, it's essential to look for properties with no security deposit or key money, review brokerage fees, reduce optional expenses, and be creative with the timing and method of moving.
Additionally, choosing a property with furniture and appliances or a shared house can significantly reduce the initial costs. Understanding the details in advance, setting priorities, and preparing accordingly will lead to a smooth move.
