Key Money

[Cliodhna]

After perusing the current JETs forum, I started having an inkling question about key money.

Since key money can go into the thousands of dollars, is this just a sinkhole for money that goes to the landlord forever, or is this money we get back at some point? If it's a sink-hole for cash, I'd definitely look carefully at an apartment I could be offered, but if it's a fee akin to that of, say, a security deposit that you get back at the end of your lease, it could be something of a more bearable cost.

Does anyone know? Thanks

[mikesalvatore]

"Sinkhole" is a good way of putting it. Your key money (if you have to pay it) will disappear into a sinkhole, never to be seen again.
There likely will be a deposit to pay as well, but that is on top of the key money.

[uzakedihi]

I take it by your name you're Irish? I spoke to the Irish coordinator a few weeks ago and she said the likelyhood of anyone having to pay key money is pretty low. Usually your CI pays it, and they'll at least help you out if you're hit with it (i.e let you pay it back gradually). You don't get it back, unfortunately. It's basically just a landowner's way of guaranteeing that you'll stick around.

[Cliodhna]

I take it by your name you're Irish? I spoke to the Irish coordinator a few weeks ago and she said the likelyhood of anyone having to pay key money is pretty low. Usually your CI pays it, and they'll at least help you out if you're hit with it (i.e let you pay it back gradually). You don't get it back, unfortunately. It's basically just a landowner's way of guaranteeing that you'll stick around.

Ah, good spotting! However, I'm not an Irish national although my father's trying to get is dual citizenship back, haha. For JET's purposes, I belong to the states. I've spoken to some Irish friends, though, and they seem to mirror what you've said, but with my friends who come from stateside it seems to be more subjective. ESID aside, this has become a point of thought for me. If you do happen to get saddled with key money and the place is particularly egregious, I know I've seen it said that it's a pain when participants try to move on their own, but if you're going to be sinking $3k into key money, finding someplace yourself on Chintai or something would almost be preferable. At least then you'd be losing tons of money on a place you're good with.

Again, these are just thoughts and scenarios I've been thinking of. I'm not saying this is something that's going to happen- I'm still in the running as it is so this is all guess work and could be completely futile on my part. But if key money is so large, is this sort of rationale/strategy unusual you think?

[marbotic]

I take it by your name you're Irish? I spoke to the Irish coordinator a few weeks ago and she said the likelyhood of anyone having to pay key money is pretty low. Usually your CI pays it, and they'll at least help you out if you're hit with it (i.e let you pay it back gradually). You don't get it back, unfortunately. It's basically just a landowner's way of guaranteeing that you'll stick around.

Ah, good spotting! However, I'm not an Irish national although my father's trying to get is dual citizenship back, haha. For JET's purposes, I belong to the states. I've spoken to some Irish friends, though, and they seem to mirror what you've said, but with my friends who come from stateside it seems to be more subjective. ESID aside, this has become a point of thought for me. If you do happen to get saddled with key money and the place is particularly egregious, I know I've seen it said that it's a pain when participants try to move on their own, but if you're going to be sinking $3k into key money, finding someplace yourself on Chintai or something would almost be preferable. At least then you'd be losing tons of money on a place you're good with.

Again, these are just thoughts and scenarios I've been thinking of. I'm not saying this is something that's going to happen- I'm still in the running as it is so this is all guess work and could be completely futile on my part. But if key money is so large, is this sort of rationale/strategy unusual you think?

You think we're allowed to find our own place in a situation like that? I feel like it may be a bit rude, since they pick the place, to turn it down. But obviously if you're stuck with a large key money requirement and the rent isn't subsidized, it may be better to find your own place. I kinda don't think that's allowed, though.

[merkypie]

I take it by your name you're Irish? I spoke to the Irish coordinator a few weeks ago and she said the likelyhood of anyone having to pay key money is pretty low. Usually your CI pays it, and they'll at least help you out if you're hit with it (i.e let you pay it back gradually). You don't get it back, unfortunately. It's basically just a landowner's way of guaranteeing that you'll stick around.

Ah, good spotting! However, I'm not an Irish national although my father's trying to get is dual citizenship back, haha. For JET's purposes, I belong to the states. I've spoken to some Irish friends, though, and they seem to mirror what you've said, but with my friends who come from stateside it seems to be more subjective. ESID aside, this has become a point of thought for me. If you do happen to get saddled with key money and the place is particularly egregious, I know I've seen it said that it's a pain when participants try to move on their own, but if you're going to be sinking $3k into key money, finding someplace yourself on Chintai or something would almost be preferable. At least then you'd be losing tons of money on a place you're good with.

Again, these are just thoughts and scenarios I've been thinking of. I'm not saying this is something that's going to happen- I'm still in the running as it is so this is all guess work and could be completely futile on my part. But if key money is so large, is this sort of rationale/strategy unusual you think?

You think we're allowed to find our own place in a situation like that? I feel like it may be a bit rude, since they pick the place, to turn it down. But obviously if you're stuck with a large key money requirement and the rent isn't subsidized, it may be better to find your own place. I kinda don't think that's allowed, though.

Good luck on trying to find an apartment landlord that's willing to rent to a foreigner. If you do find one they'll probably boost up the key much so much that it'll probably chase you away. Your only option is probably a LeoPalace apartment.

Key money is an inevitable part of Japanese living.

[Cliodhna]

You think we're allowed to find our own place in a situation like that? I feel like it may be a bit rude, since they pick the place, to turn it down.

That would be my main concern. It's not something I want to come up against, but if it's a matter of being out $3k or being a minor inconvenience...honestly, I don't know anyone who's got $3k just sitting around, I certainly don't, and it seems like it could turn into a 'necessary evil' scenario if you get the lucky draw to pay high key money. :/

Good luck on trying to find an apartment landlord that's willing to rent to a foreigner. If you do find one they'll probably boost up the key much so much that it'll probably chase you away. Your only option is probably a LeoPalace apartment.

Key money is an inevitable part of Japanese living.

Not every place has key money, and if they advertise as no key money then turn around and say there's key money, that can't look good on their part. Granted, that's if they care about image? haha. But I understand what you're trying to say.


Thanks for your thoughts, guys. It's definitely helped with my brainstorming. Between winter break and waiting for JET, I've probably been thinking way too much, haha. Thanks for putting up with my wild ideas and giving your feedback.

[Ode to a Grasshopper]

You think we're allowed to find our own place in a situation like that? I feel like it may be a bit rude, since they pick the place, to turn it down. But obviously if you're stuck with a large key money requirement and the rent isn't subsidized, it may be better to find your own place. I kinda don't think that's allowed, though.

It's another ESID. Some BOEs will let you move no problem (though if you have a BOE-owned subsidised apartment they won't help you with the new rent), some have arrangements with landlords to pay for the apartment through the year and so will be unhappy if you move. You may not find out much about your place before you arrive and be asked to agree to live there - and pay key money - before you've seen it, in which case if you skip out you'll still have lost the funds AND be up for a new lot, if you can find a place at all.
Your best bet - as is pretty much always the case - is to plan for the worst and hope for the best.

[Namisuke]

Almost everyone I talked to about apartments had to pay some kind of key money or rent advance, so reading that people say it is rare is a surprise to me. I have heard it is common for city JETs to have to pay the most for key money. As per my experience, that seems to be true. In my country apartment, I got some of my deposit back. For my city apartment, I don't expect to get any of my 200,000 yen back.

[king]

Don't worry about it. I've never heard of someone paying thousands, key money is usually just a few hundred dollars.
Even if you do have to pay $2000....that really really really sucks but I doubt you would have to pay it all up front, your prefecture/school/whatever would most likely be willing to loan you the money and have you pay it off over the next few months.

[Eigen]

ESID is a nasty thing that you'll hate hearing but it's true here. In Gifu there's only 8 prefectural JET positions with high schools, and many municipal JETs. Most of the prefectural positions got apartments in prefecturally owned Board of Education buildings, so we had no key money or deposits or anything. (Score!)

Some of the municipal JETs were placed into new apartments, or took over private contracts from previous JETs (handled by the local BoE). They HAD to pay key money.

For those that think 'hey I might just turn it down!'. Keep in mind that many apts are cheaper when it's through your BoE, and trying to get a place as a foreigner is a HUGE hassle, and very often will be much MUCH more expensive after you factor key money, managers fees, agency fees, and deposits.

There's positives with everything. Private places will sometimes give you your appliances (You get a range with my building, and that's IT...no fridge, washer or anything else...I bought from my pred), or at the very least will cover maintenance costs if there's any probs with your apt. With publically owned buildings it's usually the tenant that has to deal with maintenance and repair costs on things like flooring, walls, etc.

[Narcheska]

Take a lump sum to start you off. What you think you need to survive until your first pay plus at least $500 extra, maybe even a grand. I ran out of money 5 days before payday due to unforseen costs (and having way too much fun, lunches and coffees) and then my pay was 3 days late going in. $3000 seems a bit much for key money though.

[Sendai_Momiji]

I'm assuming we're talking about Rekin here, right?

Google saaaays...

In Japan, reikin (礼金?, literally, "gratitude money") is a mandatory payment to the landlord that is often the same amount as the original deposit (shikikin). However, reikin can be the equivalent of six months (or more) of rent, but is typically the same as one to three months of rent. This money is considered a gift to the landlord and is not returned after the lease is canceled.
In recent years, an increasing number of landlords and real estate agencies have begun to offer "reikin-free" rental housing.

As I was told Key money first came into being after WW II in Tokyo when housing was scarce after the firebombing. People were so desperate for housing that they would take to bribing landlords for the privilege of renting. (Kind of like that episode of Friends when Ross is trying to get into a building and tries to bribe the landlord with a basket of mini muffins.) There's no real reason for it now but the Japanese are kind of big on "Well this is what we've always done so that's how we're going to do it" even if it isn't how it's always been done. (See: Eating whale meat.)

That being said, I can't imagine your average JET having to worry about a serious and sizable key money about since for the most part and think JETs are out in BFE and rent is cheaper there. But ESID and it never hurts to bring too much money.

[Eigen]

It should be pertinent to note that, after you're given notification of your placement, you'll have warning before you leave about the costs associated with your move. You WILL talk to your CO and Supervisor, and probably your pred, too. You'll be able to find out all information beforehand.

[Cliodhna]

^Thanks, you guys. Will, I agree with your closing sentiment. I'm somewhere between needing things and needing nothing. I'm quite happy with a futon and a bottle of nestle iced coffee until payday, haha. But you've brought up something I've not thought a lot about, and that is the cost from tokyo to your final destination. While this is unrelated to key money, will the arrival time to your main prefecture be predetermined or will you be able to make your own arrangements? Or is it all ESID and up in the air?