Typical Upfront Costs for an Ordinary Rental
Renting an ordinary rental property involves various upfront costs.The basic items are generally the security deposit (shikikin), key money (reikin), advance rent, brokerage fee, guarantor fee, fire insurance, and key-exchange fee.
The guarantor fee is one of the costs paid when renting a property: a payment to a guarantor company that covers you if you become unable to pay the rent, or for other costs related to the lease.
Based on the average rent and common service fees in the three major metropolitan areas, the typical upfront cost for an ordinary rental comes to about ¥400,000.
These figures are only averages and may vary with the property and the contract. The deposit and key money in particular differ greatly depending on the property and the owner's policy, and some properties require neither.
Estimated upfront costs based on average rent + common service fee in the three major metropolitan areas
| Item | Cost | Notes |
|---|---|---|
| Security deposit (shikikin) | ¥78,069 | Average: 1–2 months' rent |
| Key money (reikin) | ¥78,069 | Average: 1–2 months' rent |
| Advance rent | ¥78,069 | Average: 1 month's rent + a daily-rate portion |
| Brokerage fee | ¥85,875 | Average: 1 month's rent |
| Guarantor fee | ¥41,453 | |
| Fire insurance | ¥15,000 | |
| Key-exchange fee | ¥15,000 | |
| Total | ¥391,535 |
Typical Upfront Costs for a Share House
The typical upfront cost for a share house is generally about ¥100,000. You can see this is far lower than the typical upfront cost of an ordinary rental (about ¥400,000).In a typical share house, the deposit, key money, brokerage fee, guarantor fee, fire insurance, and key-exchange fee are often not required, which greatly lightens the burden at move-in.
However, a share house is a lifestyle built on using shared spaces. For that reason, some aspects of privacy and the living environment are shared with other residents. It is important to choose the home that best fits your own lifestyle and needs.
| Item | Cost | Notes |
|---|---|---|
| Deposit and key money | None | |
| Administrative fee | ¥30,000 | Required when signing a share house contract |
| Advance rent | ¥50,000 | 1 month's rent |
| Brokerage fee | None | |
| Guarantor fee | None | |
| Fire insurance | None | |
| Key-exchange fee | None | |
| Common service fee | ¥12,000 | Water, utilities, and internet |
| Total | ¥92,000 |
Search for a room
Only furnished properties with appliances are listed!
Breakdown of Share House Upfront Costs
The main upfront costs when moving into a share house are the following four items. Upfront costs when moving into a share house- Contract Fee
- Common service fee
- Advance rent
- Guarantor fee
Contract Fee
The contract fee is the fee paid to the operating company that handles the contract for the property.
When you sign an ordinary rental, you pay a brokerage fee to a real estate agent; when you sign a share house contract, you pay a contract fee instead.
While the typical brokerage fee is 0.5–1 month's rent, the typical contract fee is about ¥15,000–30,000.
So the share house contract fee is set very low compared with a brokerage fee.
Common service fee
The common service fee mainly covers water and utilities, daily necessities, and the internet connection.
In a share house, the operating company pays the water, utilities, and internet bills together, so those costs are collected from residents as a flat common service fee.
The typical common service fee is about ¥10,000–15,000.
Because the costs needed for daily life are collected as a flat fee, your spending does not change even in a month when you use a lot of water or gas.
Advance rent
Advance rent is rent paid before you move in, to prevent unpaid rent.
In general, 1–2 months' rent is paid as advance rent.
If you move in partway through a month, rent is charged on a daily basis from the day you move in, so there is no disadvantage to the resident.
Advance rent is proportional to the rent, so the lower the rent, the lower the upfront costs.
Guarantor fee
The guarantor fee is the fee charged when you join a guarantor company.
The reason for joining a guarantor company is that, even if a resident falls behind on rent, the guarantor company covers the rent so that the operating company's income is guaranteed.
The typical guarantor fee is about ¥10,000–50,000, but depending on the share house operator, the guarantor fee may not be included in the upfront costs.
How to Keep Share House Upfront Costs Low
We have seen that share house upfront costs are very low compared with an ordinary rental. However, some of you may want to lower them even more. Below we introduce three ways to keep share house upfront costs down.
About XROSS HOUSE
XROSS HOUSE lets you choose from different room types, such as lockable private rooms, semi-private rooms, and dormitories, to suit your lifestyle. Furniture and appliances are provided. The contract procedure is completed with just a smartphone, and online viewings and smart-key move-in are available, so you can start a new life smoothly. For costs and conditions, please check the official website.
Search for a room
Only furnished properties with appliances are listed!
How to Lower Share House Upfront Costs
We have seen that share house upfront costs are very low compared with an ordinary rental. However, some of you may want to lower them even more. Below we introduce two ways to keep share house upfront costs down.Method 1: Choose a bedroom type other than a private room
You can lower upfront costs further by choosing a dormitory or semi-private bedroom instead of a private room.Share houses have shared bedrooms called dormitories, and shared bedrooms divided by partitions called semi-private rooms. Because each resident occupies less space than in a private room, the rent tends to be set lower.
However, noise from roommates, and shared lighting and air conditioning in the bedroom, are disadvantages of dormitories and semi-private rooms.
So when choosing a bedroom type other than a private room, we recommend considering not only the cost but also whether shared-room living suits you.
Method 2: Use a campaign
Signing a contract while a campaign is running is another way to lower share house upfront costs.Some share house operators run campaigns in which part of the upfront costs or the contract fee is waived.
Note that to receive a campaign discount, there may be conditions such as “you must stay for at least three months.”
Method 3: Choose an operator with flat upfront costs
Choosing an operator with flat upfront costs makes the cost at signing clear and keeps unnecessary expenses down. For example, share houses with systems such as “flat upfront cost of ¥30,000” or “deposit only, no other costs” often require no security deposit, key money, or brokerage fee, so you can move in smoothly. However, cleaning fees or renewal fees may be charged separately, so it is important to check the contract terms beforehand. Choices are limited, but it is recommended for cost-conscious people.
Costs Other Than Upfront Costs You Can Save by Living in a Share House
Here are three costs, other than upfront costs, that you can save by living in a share house.Cost of furniture and appliances
Cost of daily necessities
Some share houses provide cooking utensils and seasonings in advance, so you can save the cost of buying them.In a share house, the operating company uses the flat common service fee collected from residents to buy daily necessities such as toilet paper and detergent in bulk and deliver them.
So even in a month when you use many daily necessities, your spending does not increase, and you can keep living costs low.
Utilities and internet charges
In share houses, monthly utilities and internet charges are almost always included in the rent. Many share houses also have internet already set up, so there is no hassle of signing up or having work done.In share houses, internet charges are often included in the rent, but some of you may be concerned about speed and connection quality. We explain this in detail in the following article.
“What Is the Wi-Fi Like in a Share House? Points to Check When It Is Slow”
Search for a room
Only furnished properties with appliances are listed!
Summary
The upfront costs of a share house are significantly lower than those of an ordinary rental. An ordinary rental requires a security deposit, key money, a brokerage fee, and so on, but a share house often does not, and the typical upfront cost is about ¥100,000. Many properties also come with furniture and appliances, which reduces the cost of starting a new life. In addition, the common service fee includes water and utilities, which makes monthly living costs easier to manage. For people who want to live comfortably while keeping costs down, a share house is the ideal choice.
