When you are looking for a rental property, you may come across a property that says "No renewal fee".
It is attractive that there is no burden when updating, but it is a little early to decide that it is a good deal just because of it.
What is renewal fee?
Renewal fee is the fee you pay when you renew your contract and continue living in the property.
Treatment varies depending on the region and property, but in some cases the amount is equivalent to one month's rent. This often occurs when updating every two years.
Advantages of no renewal fee
If there are no renewal fees, the longer you live in your home, the easier it will be to predict costs.
The advantage is that you don't have to pay a huge amount every two years, so you won't feel a big burden when renewing.
This is a source of peace of mind for those who are thinking of staying for a long time.
It is important to compare the monthly cost
Even if there is no renewal fee, the monthly rent and management fees may be set a little higher.
For example, if there is no renewal fee but the rent is higher than the market price, the total amount may end up becoming higher after living in the property for several years.
What you should look at is not just the initial cost and renewal fee, but the total amount for the entire period of residence.
If there is a renewal fee
Even if there is no renewal fee, there are properties that require a renewal administrative fee.
The amount varies depending on the property, but it can cost around several tens of thousands of yen. Even if it says "no renewal fee," it does not mean that the renewal fee will be completely zero.
summary
Properties with no renewal fees are attractive, but it is important to compare monthly costs and renewal administrative fees.
If you plan to live there for a long time, it will be easier to make a decision by looking at the total amount for 2, 4, and 6 years.