What is the difference between a monthly apartment and a rental apartment?
What is a Monthly Apartment?
Monthly apartments are a service that provides residential space in a market that lies between the hotel and rental industries. Generally, furniture and appliances are provided in rental apartments or condominiums and they are operated under fixed-term leases. They are used by a wide range of people, from short-term use on a daily basis to long-term use on a monthly or yearly basis.
Source: About Monthly Apartments | Monthly Apartment Association
These rental apartments can be rented on a monthly basis and specialize in short-term contracts, making them ideal for a variety of purposes, such as business trips, temporary housing, and exams.
What is the difference between a monthly apartment and a rental apartment?
Reason 1: No initial costs
The main difference between a monthly apartment and a regular rental apartment is whether or not there are any initial costs.
When signing a contract for a typical rental apartment, you must pay a one-time move-in fee equivalent to five to six months' rent, including a security deposit, key money, and brokerage fee.
Example of initial costs when signing a contract for a rental apartment with a monthly rent of 75,000 yen
| breakdown | Market price | Apartment |
|---|---|---|
| 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 | 5,000 to 15,000 yen | 5,000 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 |
Monthly apartments do not incur these initial costs.
Related article: How much is the initial cost of a monthly apartment? Explaining the average price and the breakdown
Reason 2: You can use it only for the period you need.
Most typical rental apartments have two-year contracts, except for fixed-term lease properties.
On the other hand, monthly apartments can be rented for only the period you need.
It is possible to move out of a typical rental apartment within two years, but the initial fees paid will not be refunded, and if the contract includes a "short-term termination penalty clause," a penalty may be incurred.
Therefore, if the period of stay is decided in advance, a monthly apartment contract is very convenient.
Reason 3: The furniture and appliances necessary for daily life are provided
Monthly apartments come equipped with the furniture and appliances you need for daily life, such as curtains, a refrigerator, a microwave, and a bed.
When moving normally, you need to buy furniture and appliances, which can add to your expenses in addition to the contract fee. Also, large furniture such as beds take time to set up and require effort to move.
Monthly apartments come equipped with furniture and appliances, so even if you are staying for a short period of time or have suddenly moved in, you can immediately resume your normal lifestyle.
Related article: What furniture and appliances are provided in monthly apartments? Options and precautions for use explained
