Sunday, January 24, 2010

Won't Miss #114 - key money & contract renewal fees

Though it isn't always the case, you often have to pay two months of "gift" money when you first sign a contract and one to three months again every two years when you renew your contract. This is mandatory, though it can be negotiated in some cases. The money is little more than extortion and a way of extracting more money from the tenant. In some cities, this is illegal and there has been much talk of outlawing it all over Japan, but there will always be a way for landlords to get around the law. Since moving is far from cheap in Japan, tenants have a choice between paying these fees or forking out money to move at an expense not appreciably less than some of these required "gifts".

I won't miss this extortion when dealing with rental contracts.