So-called “zero-zero properties” (zero-zero bukken) — where neither a deposit nor key money is charged — can look like an attractive option if you want to keep initial costs down. At the same time, that saved cost is sometimes recovered in another form, so it's important to understand how the arrangement works before you commit. This article takes a neutral look at the general features of zero-zero properties and what's worth checking before signing.
- A zero-zero property is one where the deposit and key money charged at signing are waived, or partly reduced.
- While initial costs are lower, the rent itself is sometimes set a little above the going rate for the area.
- Some contracts include a clause charging a penalty if you cancel within a short period.
- Some contracts also specify in advance that the tenant will bear costs such as move-out cleaning.
- Carefully checking the explanation of important matters and any special clauses in the contract before signing is essential.
How Zero-Zero Properties Work
‘Zero-zero property’ is a term used for listings where neither the deposit nor key money is charged at signing, or where one of the two is reduced. Because it lightens the initial cost burden, it's an option worth considering if you want to keep your moving costs as low as possible. Property listing sites often let you filter for ‘no deposit / no key money,’ so these properties are relatively easy to find.
Why Initial Costs Are Lower
Because there's no deposit or key money to collect, the landlord sometimes sets up another way to recover that cost. In practice, this can mean setting the rent a little above the going rate for the area, or adding special clauses about costs due at move-out. It's important to judge based on the contract as a whole, not just how low the initial cost looks.
Checking the Rent Level and Any Short-Term Cancellation Penalty
Some zero-zero properties include a clause that charges a penalty if you cancel within a set period — for example, less than one or two years after moving in. If there's any chance you might need to move again, such as for a job transfer or returning to your home country, checking these short-term cancellation terms before signing is essential.
Special Clauses on Move-Out Costs
Some contracts also include a clause specifying in advance that the tenant will bear costs such as move-out cleaning, or part of the cost of restoring the room to its original condition. These clauses are spelled out in the contract and the explanation of important matters, so checking what costs might arise before signing makes it easier to avoid disputes at move-out.
What to Check in the Explanation of Important Matters Before Signing
When considering a zero-zero property, it's important to carefully check the explanation of important matters for what costs and special clauses are set out beyond the rent itself. The wording of these clauses differs from property to property, so even under the same label of ‘zero-zero property,’ comparing the actual conditions carefully matters. If anything is unclear, asking your agent on the spot and signing only once you're satisfied with the answer brings peace of mind.
Comparing with an Ordinary Contract That Includes a Deposit and Key Money
An ordinary contract that includes a deposit and key money carries a heavier initial cost burden, but its move-out clauses are sometimes comparatively simple. Both types of contract have advantages and disadvantages, so it's worth choosing based on how often you expect to move and your budget. Which of the two suits you better — a zero-zero property or an ordinary contract — is worth weighing by considering both the initial cost and how you plan to live over the longer term. We also cover the general meaning of deposits and key money in a separate article.
FAQ
Are zero-zero properties really a good deal on initial costs?
Since there's no deposit or key money, initial costs are indeed lower, but the rent level and move-out clauses can differ, so it's important to judge based on the contract as a whole.
Will I be charged a penalty if I move out of a zero-zero property soon after moving in?
Some properties do include a clause charging a penalty if you cancel within a set period. If there's any chance you might move again, check the terms before signing.
How can I avoid being billed for unexpected costs at move-out?
Carefully check the explanation of important matters and any special clauses in the contract before signing, so you understand in advance what costs might arise at move-out.
Summary
Zero-zero properties are attractive for keeping initial costs down, but there are points worth checking too — the rent level, any short-term cancellation penalty, and special clauses covering move-out costs. Understand the contract as a whole, and choose the option that fits how you plan to live.