How much is the initial cost of a monthly apartment? Explaining the average price and the breakdown
Monthly apartments come fully furnished and can be easily used for short periods of time, and there is no need to pay a deposit, key money, brokerage fees, etc. One of the attractions of monthly apartments is that the initial costs can be kept lower than for regular rental apartments.
In this article, we will explain the amount and breakdown of initial costs for monthly apartments, as well as ways to keep these costs lower.
- Do monthly apartments require no initial costs?
- Breakdown and average initial costs for monthly apartments
- Possible costs other than the initial cost
- How to pay the initial fee
- Steps for signing a monthly apartment contract
- How to keep the initial costs of a monthly apartment low
- The initial cost for a monthly apartment is "rent + 50,000 yen"
- Livemax - Monthly Apartments
Do monthly apartments require no initial costs?
The reason why monthly apartments are said to have no initial costs is because they do not require the security deposit, key money, or brokerage fees that are required for regular rental apartments. In addition, there is no need to purchase new furniture or appliances for monthly apartments. These initial costs are equivalent to several months' rent, which can be a major burden when starting a new life.
[Reference ①] Initial costs when moving into a rental apartment with a rent of 75,000 yen
The initial costs for moving into an apartment with a monthly rent of 75,000 yen are as follows. In addition to these, you will need to pay for the purchase of furniture and appliances.
| breakdown | Market price | cost |
|---|---|---|
| Deposit and key money | 2 to 4 months' rent | 150,000 yen to 300,000 yen |
| Brokerage fee | 1 month's rent + consumption tax | 81,000円 |
| Fire insurance premiums | Approximately 5,000 to 15,000 yen | 5,000 yen to 10,000 yen |
| Payment to the guarantor company | Approximately 30 to 80% of the rent | 22,500 yen to 60,000 yen |
| total amount | - | 258,500 yen to 451,000 yen |
*Prices are merely estimates and vary depending on the property and contract terms.
[Reference 2] How much would a monthly apartment with the same conditions cost?
Assuming that the rent for a monthly apartment equivalent to one with a monthly rent of 75,000 yen is 90,000 yen, the initial costs for a monthly apartment are as follows.
| breakdown | cost |
|---|---|
| Cleaning fee | Around 20,000 yen |
| Management fee | Around 15,000 yen |
| Utility bills | Around 25,000 yen |
| Rent | 90,000円 |
| total amount | 150,000円 |
*Prices are merely estimates and vary depending on the property and contract terms.
As you can see, monthly apartments do have cleaning fees and other miscellaneous costs when you move in, but they are negligible. In that sense, it can be said that "monthly apartments require no initial costs."
Monthly apartments are easier and less costly to rent than regular apartments, so they are widely used as temporary housing, such as a base for staying when returning to Japan or a home for business trips of several months.
For more information about the basic structure of monthly apartments as well as their advantages and disadvantages, please read this article.
Breakdown and average initial costs for monthly apartments
The initial costs for a monthly apartment are mainly rent and management fees. The contents of the management fees vary depending on the company, but they may include the cost of purchasing consumables and cleaning fees after moving out. Below are some examples of the breakdown of initial costs other than rent.
Contract administration fee
When renting a monthly apartment, you may be charged a contract administration fee. This is the cost for creating the contract and carrying out administrative procedures, and varies depending on the property. The average price is around 5,000 to 20,000 yen.
First month's rent
When moving in, you will need to pay rent in advance for the contracted period. In the case of a monthly apartment, payment is usually made on a monthly basis, but depending on the property, it may be calculated on a weekly or daily basis.
Utility expenses/water expenses
In monthly apartments, utilities such as heating and water may be charged separately. These are often set at a fixed monthly rate, typically around 10,000 to 20,000 yen. However, they may also be included in the rent.
Cleaning costs
There may be a cleaning fee when you move out. In most cases, this is paid in advance when you move in, and the average price is around 5,000 to 30,000 yen. Depending on the property, this may vary depending on the length of your stay.
(H3) Furniture and appliance usage fee (optional)
Monthly apartments generally come with furniture and appliances, but you may be able to rent bedding sets and tableware as additional options. These costs range from 5,000 to 20,000 yen per rental.
There is no need to pay a deposit, key money, or the cost of purchasing furniture and appliances, which are required when moving into a regular apartment. Based on this, the initial cost of a monthly apartment is roughly "one month's rent plus around 50,000 yen."
There is a wide range of monthly apartments, from properties for single people to those for families, so the rent itself varies widely, but the initial costs on top of rent are around 30,000 to 60,000 yen for all management companies, so you can think of them as initial costs in this way.
[Reference] Initial costs for monthly apartment Livemax
In the case of the monthly apartment Livmax, all initial costs other than rent are included in the "Monthly Basic Pack", so the breakdown of the initial costs is as follows:
- Rent
- Cleaning fee
- Monthly basic package (utilities, management fee, contract fee, bedding fee, standard equipment fee)
Possible costs other than the initial cost
In addition to the initial cost, there may be additional costs involved in the following cases:
- In addition to the initial cost, there may be additional costs involved in the following cases:
- When you break the rules regarding room use and need compensation
- When compensation is required due to damage to fixtures or equipment
The above fees will not be incurred under normal use, but be sure to check the contract details regarding additional fees when moving in.
How to pay the initial fee
The initial fee for a monthly apartment is generally paid in one lump sum. Most common payment methods can be used, but be aware that some management companies only accept cash payments and do not accept credit cards.
- Bank transfer
- Credit card payment
- Convenience store settlement
- Cash payment
Generally, the entire amount including rent is paid in one lump sum, but if the amount is high, some management companies may allow you to pay in installments, so please inquire. If you absolutely have to pay in installments, you can also use the installment payment system of your credit card company, although this will incur a processing fee.
Steps for signing a monthly apartment contract
Monthly apartments can be rented as soon as the same day. Most contracts are done electronically, so it is convenient when you need to decide on a place to live quickly. First, please contact us to see if the property you want is available.
For more information on the enquiry process, click here
How to keep the initial costs of a monthly apartment low
If you want to keep the initial costs of a monthly apartment as low as possible, we recommend booking during each company's campaign period or the off-season.
Aim for the campaign
Each company runs a campaign where you can stay at their monthly apartments at a discounted price according to the season. For example, the monthly apartment Livemax has run the following campaigns:
| campaign | Content |
|---|---|
| Limited time limited campaign | Many popular properties are available at significant discounts from the regular price, for a minimum period of 7 days or for the period designated by our company. |
| Autumn Campaign | Monthly apartment rent is up to 60% off for those who start moving in October and November. |
| Winter Discount Campaign | Monthly apartment rent is up to 50% off for those who start moving in December or January. |
Click here for the current campaign being held by Livemax
Aim for the off-season
Generally speaking, the off-season for monthly and weekly apartments is from May to June and from August to September. For that reason, there are often campaigns and guerrilla discounts on rent during these periods. If you can choose the timing of your move, this is a good time to do so.
The initial cost for a monthly apartment is "rent + 50,000 yen"
The initial cost of a monthly apartment is "rent plus around 50,000 yen." Although you can't pay just the rent, it is significantly cheaper than a rental apartment.
To get even better deals, we recommend searching for properties with similar conditions from several management companies and comparing the initial costs. You can also reduce costs further by taking advantage of campaigns and off-seasons.
For monthly apartments, choose "Livemax"
Monthly apartments, which require no deposit or key money and require minimal baggage to start a new life, are used by many people as a form of rental property that allows them to keep initial costs low.
Livemax Monthly Apartments has over 20,000 rooms in major cities across Japan, all of which are conveniently located thanks to our unique market research. We also offer special seasonal plans and campaigns, so please feel free to contact us.
