What is the key money fee?
“Key money” is a non-refundable fee charged to the tenant at the time the contract is signed. It is usually equal to about two months’ rent. In Japanese, it is literally called “gratitude fee.” This practice originated when Tokyo was in the state of being reconstructed after destruction from the war. Suitable lodging was extremely rare and in exchange for a host’s hospitality, tenants would offer a “gratitude fee”. The tradition today has taken the form of a common fee. Our clients often feel unpleasantly surprised about the concept of having to pay a key money fee. Occasionally, non-Japanese clients mistakenly believe that this fee is directed specifically towards them. This misconception has no truth whatsoever; please understand that Japanese and non-Japanese alike must pay this fee. At our company, we understand that this fee does not exist outside of Tokyo and can be difficult to accept. As realtors, we feel extremely empathetic towards our displeased customers and regret that suc
