When considering an apartment for rent in Japan, understanding the components of your monthly rent is essential. Two key terms you’ll often come across in this context are “Kyoekihi” and “Kanrihi.” But what exactly do these terms mean, and how do they impact your rental expenses? In this article, we’ll delve into the intricacies of Kyoekihi and Kanrihi, shedding light on what’s involved in your monthly rent and how these elements play a crucial role in your housing budget. Let’s navigate the world of Japanese rental properties and uncover the details that every prospective tenant should know.
If you are interested in initial cost, please refer to page below.
Table of Contents
Quick Video Guide
If you prefer watching a video, please watch below, around 5:56.
Quick overview of important keywords to understand monthly rent
In terms of monthly, these 2 words are the ones you typically encounter when visiting a property agency.
| KEYWORD | DEFINITION | KANJI | TAX | ESTIMATED COST |
|---|---|---|---|---|
|
KYOEKIHI |
Common Service Charge |
共益費 |
No |
5-10% |
|
KANRIHI |
Maintenance Fee |
管理費 |
No |
5-10% |
The keywords and its definition
KYOEKIHI(共益費), KANRIHI(管理費)
Both KYOEKIHI and KANRIHI refer to the expenses incurred in managing a building. While the two terms are used interchangeably and have nearly identical definitions, there seems to be significant regional variation in their usage. They cover expenses related to shared areas like hallways, main entrances, elevators, garbage collection points, and their associated electricity bills. Additionally, they include costs for maintaining the cleanliness and safety of common areas, such as exterior wall painting and equipment repairs. It’s important to note that these fees are not subject to consumption tax.
How much is the average of "KYOEKIHI" and "KANRIHI"?
Typically, these fees amount to around 5 to 10 percent of your monthly rent. Apartments that are brand new or have advanced security and disaster prevention systems might have higher charges. When these expenses are below the average range, it could suggest that the common areas are cleaned less frequently. When visiting a property, pay attention to the cleanliness of shared areas, especially the garbage collection points.
Why there is an apartment which does not show "KYOEKIHI" and "KANRIHI"?
Sometimes, these costs are included in the total rent, while in other cases, they are billed separately.
Property owners often list the rent separately from these fees to make the rent seem more affordable from a tenant’s perspective. Additionally, many people search for properties based on monthly rent, so this approach helps ensure that the rent appears competitive in such searches.
For tenants, having these fees separate from the monthly rent can lower initial expenses.
As discussed in this article, initial costs are calculated based on the monthly rent. Assuming a security deposit, key money, first month’s rent, and agency fees each equal to one month’s rent, you’ll need to pay a total of four months’ worth of rent initially. For instance, if a room has a monthly rent of 200,000 yen and management fees of 20,000 yen, the initial cost would be 800,000 yen. Conversely, if management fees are included in the rent, making the monthly rent 220,000 yen, the initial cost totals 880,000 yen, resulting in an 80,000 yen difference.
Key Takeaway
Understanding the Terms: Kyoekihi (共益費) and Kanrihi (管理費) are essential components of your monthly rent in Japan.
Kyoekihi Definition: Kyoekihi, also known as common service charges, covers expenses related to common areas.
Kanrihi Definition: Kanrihi, on the other hand, includes expenses like the building manager’s salary. Typically, you’ll pay either one of them, not both.
Average Costs: On average, Kyoekihi and Kanrihi together typically amount to around 5% to 10% of your monthly rent.
Inclusion in Rent: Sometimes, these fees are included in the rent, while in other cases, they are billed separately. Property owners may separate these fees to make the monthly rent appear more competitive.
Impact on Initial Costs: When these fees are included in the rent, initial costs can be higher. For example, a room with a monthly rent of 200,000 yen and management fees of 20,000 yen may have an initial cost of 880,000 yen. In contrast, if these fees are included in the rent, the initial cost might be 800,000 yen, resulting in a difference of 80,000 yen.
