When renting an apartment in Kyoto, unique customs that differ from national standards exist. By understanding Kyoto's rental market characteristics—including security deposit deductions, renewal fees, and key money rates—you can make an informed decision and avoid regrets.
Reviewed by: Nobuyuki MoriPresident, M-Assets Co., Ltd. / Licensed Real Estate Transaction Specialist (Miyagi #018212)
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Kyoto has many universities and experiences high rental demand from students and young professionals. At the same time, as one of Japan's premier tourist destinations alongside Tokyo and Osaka, it also sees significant short-term rental demand. Kyoto's rental market retains customs that differ from national standards, which can confuse first-time renters in the city. This article explains Kyoto's unique rental customs and key negotiation points to know when signing a lease.
"Shikibiki" (security deposit deduction) is a custom where a fixed amount is deducted from the security deposit upon move-out and not returned. Nationally, the principle is to return nearly all of the security deposit, but in Kyoto and parts of the Kansai region, this practice has become established.
For example, under a condition of "3-month security deposit with 2-month deduction," you pay 3 months of rent as the security deposit, and 2 months are forfeited regardless of restoration costs—the remaining 1 month becomes the subject of settlement as a guarantee deposit.
Security deposit deductions are recognized as valid special clauses under certain conditions by a 2011 Supreme Court ruling. However, if the deduction amount exceeds approximately 3.5 months' rent, it may become an issue under the Consumer Contract Act.
Even if a deduction clause is written in the contract, if the amount is unreasonably high, you may be able to request a refund after move-out. Carefully review your contract terms with reference to Japan's Ministry of Land, Infrastructure, Transport and Tourism's "Guidelines on Disputes and Restoration to Original Condition."
As of 2026, properties without security deposit deductions are increasing even within Kyoto. Particularly with newer properties and those managed by major real estate companies, a standard security deposit and key money system is increasingly used. However, properties managed by long-established local landlords may still retain this practice.
In Kyoto, the custom of paying a "renewal fee" equal to one month's rent upon lease renewal remains widespread. This typically occurs every two years.
While properties without renewal fees are increasing nationwide, Kyoto has a higher proportion of properties with renewal fees compared to other cities. When calculating your two-year housing costs, it's important to divide the renewal fee by 24 months and add it to your monthly expenses.
Example) For a monthly rent of ¥80,000 with a 1-month renewal fee (every 2 years): → Actual monthly cost = ¥80,000 + (¥80,000 ÷ 24 months) = approximately ¥83,300
Renewal fees are also deemed valid under a 2011 Supreme Court ruling, provided the amount is not unreasonably high. However, the existence of renewal fees must be clearly stated in the important terms disclosure document, so always confirm this before signing.
Many Kyoto properties still charge key money, with 1–2 months' rent being common. While the nationwide trend toward zero key money has reached Kyoto, popular areas (such as Shijo, Kawaramachi, and around Kyoto Station) often include key money.
Student housing and older properties increasingly offer zero key money. Even when key money is set, you may be able to negotiate it down to zero or half—it's worth discussing with the landlord before applying.
Below is a guide to rent levels in Kyoto's main areas as of 2026.
Around Kyoto Station (Shimogyo-ku, Minami-ku)
Shijo / Karasuma / Kawaramachi (Shimogyo-ku, Nakagyo-ku)
Demachi-Masugata Shotengai / Imadegawa (Kamigyo-ku)
Sakyo-ku (Okazaki, Yoshida, Ginkaku-ji area)
Fushimi-ku (Fushimi Inari, Tanbabashi area)
Because Kyoto has limited land area, central areas with low supply and high demand tend to have stickier rents.
Kyoto has strict height and appearance regulations to protect its scenic landscape, which limits large-scale apartment development. As a result, housing supply grows more slowly than in other cities, and vacancy rates tend to drop when demand is high.
Kyoto still has buildings over 40 years old built to pre-1981 seismic standards, and some low-rent properties fall into this category. While traditional machiya-style rentals have charm, it's especially important to check seismic safety and building systems.
In popular Kyoto areas, high demand for vacation rentals and short-term stays means some long-term rental properties are converted to tourism use. When searching for standard residential rentals, it's best to work with real estate companies specializing in long-term rentals.
Here's a checklist of items to especially verify before renting in Kyoto.
Kyoto's rental market retains customs that differ from national standards, which can confuse first-time renters. It's crucial to understand security deposit deductions, renewal fees, and key money thoroughly, and to compare properties based on total costs including upfront fees and renewal expenses.
Always review the important terms disclosure and ask your real estate company any questions until you're satisfied. A Kyoto home offers the appealing blend of historic culture and modern convenience. With proper knowledge, you can sign your lease with confidence and start your Kyoto life worry-free.
※The rent levels and costs in this article are estimates at the time of publication. Please check the latest rates on portal sites such as SUUMO, LIFULL HOME'S, and Athome.
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