Properties with zero key money are popular among those who want to reduce initial costs.
The key money is money that will not be returned, so if it is zero, the burden will certainly be lighter. However, just because there is no key money doesn't necessarily mean it's a good deal.
What is key money?
Key money is a lump sum payment to the lender. Unlike a security deposit, it is not returned when you move out.
Therefore, zero key money has the effect of lowering initial costs.
Sometimes it is added to the rent.
Instead of zero key money, the rent may be set a little higher.
For example, in a property where the rent is 90,000 yen with one month's key money and another property where the rent is 95,000 yen with no key money, the longer you live in the property, the higher the total amount of the latter may be.
Check short-term cancellation penalties
For properties with no key money, there may be a short-term cancellation penalty.
If there is a condition such as ``1 month's rent if canceled within 1 year'', be careful if you plan to live there for a short time.
Compare by total amount
It is important to compare not only key money but also rent, management fees, renewal fees, penalties, and cleaning fees.
Even if the initial cost is low, it can be expensive in the long run.
summary
Zero key money is attractive, but make a decision based on the balance with the rent and contract terms.
The important thing is to think about not only the initial cost, but also how long you plan to live there. Really affordable properties will change depending on how long you live in the property.