The initial cost of the rental property can be paid in installments!Payment methods and precautions you should know

What is the initial cost of a rental property?

The initial cost is the initial cost when renting a rental property. First, let's see what kind of costs are required to contract a rental property.

Breakdown of initial cost of rental property

When renting a rental property, a "security deposit / key money" and a "brokerage fee" will be charged. These are calculated based on the rent, and the security deposit and key money are generally 0 to 2 months'worth of rent, and the brokerage fee is 0.5 to 1 month's rent + consumption tax.

Furthermore, if you start moving in from the middle of the month, such as the 10th or 20th, you will be charged a "daily rent" for that month. Depending on the real estate company or landlord, the rent for the next month contracted as "previous rent" may be required.

The initial cost is the sum of the "fire insurance premium" and "key exchange fee".

Money required other than the initial cost

When you actually start moving in, you need to prepare the moving fee and the purchase cost of furniture and home appliances. As for the moving fee, the fee will be different between the busy season such as March and the normal season, so check in advance.

It is also important to rent a property with a reasonable rent, as it is necessary to calculate the living expenses.

[Simulation of initial cost of rental property] When renting a property with a rent of 70,000 yen

Let's see how much the initial cost actually costs when renting a property with a rent of 70,000 yen. For example, the table below shows a case where you move in from the beginning of the month to a property whose security deposit, key money, and brokerage fee are each "one month's rent".

The fire insurance premium and key exchange fee are set at 15,000 yen, the management fee is set at 5,000 yen, and the moving fee is set at 40,000 yen. In addition, living expenses are calculated with reference to the household budget survey for single-person households conducted by the Statistics Bureau of the Ministry of Internal Affairs and Communications in 2020.

Security deposit	70,000 yen
key money	70,000 yen
Daily rent	70,000 yen
Brokerage fee	77,000 yen (1 month rent + consumption tax)
Fire insurance premium	15,000 yen
Key exchange fee	15,000 yen
Management fee	5,000 yen
Moving fee	40,000 yen
Food expenses	40,000 yen
Water and utility costs	12,000 yen
Other living expenses	90,000 yen

Total 504,000 yen

If the previous rent is required, or if the security deposit is 2 months, the initial cost will be higher than this. Therefore, it is important to know in advance how much money you will need.

Rent / Rent Special feature for rent of 70,000 yen or less Search for rental properties

There is also a way to pay the initial cost of the rental property in installments

The initial cost is often 4 to 5 times the rent, and it can be difficult to prepare a large amount of money. Here, we will explain how to pay the initial cost in installments.

Search by real estate company that can pay in installments

Depending on the real estate company, you may be asked to pay the initial cost in installments. If you are uncertain about how much money you have, check in advance when you are looking for a property.

However, there are two types of installment payments, cash and credit card payments, and there are many cases where payment methods are limited to credit cards. Therefore, even if you are a real estate company that supports installment payments, check the payment method in detail.

Also, depending on the real estate company, there are cases where items that can be paid in installments are fixed. In some cases, security deposits and key money may be accepted, but they may not be applied to rent or brokerage fees.

Therefore, let's check not only the payment method but also the extent to which the installment payment is applied.

Benefits of paying the initial cost of a rental property in installments with a credit card

There are also surprising benefits to paying in installments with a credit card. Here, let's look at specific points.

Financial benefits

The big advantage is that you can rent a room without having to prepare a large amount of cash. If you have to move suddenly for various reasons, it's a safer way than trying to borrow from another location and forcibly pay the initial cost.

Another attraction is that you can collect points by using a credit card. Since the initial cost is a large amount, the number of points to be converted will also be large.

Procedural benefits

Some real estate companies may not require a guarantor by paying the initial cost and rent with a designated credit card. If you can recognize your ability to pay and credit through credit card screening, the procedure may be smoother.

Also, unlike cash, online payment is possible, which has the advantage of shortening the time to contract.

Credit card accepted rental special feature

Precautions when paying the initial cost of the rental property in installments

Although the installment payment of the initial cost is a convenient system, there are some disadvantages to be aware of. Here, we will explain the points to note when making installment payments.

Financial notes

With installment payments, the greater the number of installments, the greater the burden of fees and interest rates, so the total amount to be paid in the end will inevitably be higher. Also, if you pay by credit card, you will be billed a few months after you make the payment, so if you forget it inadvertently, your household may suffer.

When making installment payments, it is important to manage the balance systematically and leave some margin.

Precautions other than financial aspects

In the case of credit card payment, if the rent is delinquent even once, the credit history will be damaged. Subsequent credit card issuance and loan screening will be difficult to pass, so you need to be very careful not to delay payment.

In addition, there are not so many properties that support installment payments as a whole. If you try to find a property that meets all the ideal conditions in addition to installment payments, it will likely be more difficult than usual.

How to reduce the initial cost of a rental property

As we have seen, it depends on the real estate company that handles the property whether the initial cost can be paid in installments. Therefore, in order to search for properties smoothly, it is important to find a room where you can pay the initial cost in a lump sum.

Here, let's look at the points to reduce the initial cost itself.

Find a property without security deposit / key money

Some rental properties do not have a security deposit or key money due to the lender's intention to reliably collect tenants. If you choose such a property, you can significantly reduce the initial cost.

The portal site of LIFULL HOME'S has a special feature as "Special feature on rental of security deposit and key money 0", from which you can search for properties.

Find a real estate company with low brokerage fees

Finding a real estate company with a low brokerage fee as well as security deposit and key money is also a point to keep the initial cost low. In addition, for properties where tenants do not gather by all means, the lender may bear the brokerage fee, which may be virtually free of charge.

Find a free rent property

Free rent is a property where rent is free for a certain period of time. Normally, the free period is about 1 to 3 months, and some properties are exempt from rent for nearly half a year.

Free rent is also a system that can be adopted by the lender who wants to avoid the creation of vacancies, and if you choose such a property, you can significantly reduce the initial cost.

Security deposit Key money 0 (zero / none) rental special feature Free rent rental special feature

Depending on the property, you may be allowed to pay the initial cost in installments.

Credit card available rental special feature Free rent rental special feature with 0 (zero / none) security deposit