Monthly apartments are popular for being super easy to move into. They’ll also save you a fair amount of money on initial costs, as you aren’t required to pay a security deposit or key money.

But depending on how you use these homes, you could end up paying more than you need to. So how much money should you prepare before renting a monthly apartment? Are there any additional charges? What are the payment options?

Here we break down the necessary costs of renting a monthly apartment and how you can pay for them.

■Costs of Renting a Monthly Apartment

Unlike a conventional property for rent, monthly apartments don’t require a security deposit, key money, or commission fees. You can also cut move-in costs thanks to rooms being equipped with furniture and necessary appliances.

◇Initial Costs

Fees and charges vary depending on the management company. Sales tax can also have an impact on the final cost. Below is an example of what you can expect on the bill when renting a monthly apartment in Tokyo.

【Tokyo, One Room or One Room with Kitchen, One Month】
1）Rent (about 150,000 yen)
2）Utility charges (about 800 yen/day, or 24,000 yen/month)
3）Management fee (about 15,000 yen)
4）Cleaning fee (about 15,000 yen)
5）Extra fees as necessary
・Japanese futon rental (about 7,000 yen)
・Tableware, cooking utensils, detergent, cleaning equipment, etc. (about 15,000 yen)　
・Internet access fee
・Insurance
・Key exchange fee

Most items are usually included in the rent, so on average, you’ll be looking at initial costs of about 150,000 yen. Remember, this is just a rough standard and can change drastically depending on facilities and location. Basic furniture and facilities like bedding, tables, air conditioning, and refrigerators are provided.

◇Sales Tax Applies For Stays Shorter Than a Month

Sales tax generally doesn’t apply to monthly apartments. This is because stays longer than a month are considered to be for residential purposes and therefore are non-taxable. However, guests will have to pay a sales tax for shorter stays, just like when booking a hotel.

■Additional Charges

This depends heavily on the management company. Below are some notable circumstances that could incur extra charges.

・Additional guests
・Extending a contract (rent, utility charges, commission, cleaning fee, etc.)
・Excessive use of utilities
・Intentional or negligent damage and defacement to equipment (restoration costs)
・Clogged drains (repair costs)
・Pets in a no-pets property (cleaning fee)

■Monthly Apartments Require Upfront Lump Sum Payments

While monthly apartments have lenient rental requirements, they will most likely ask for an upfront lump sum payment. This is to prevent unpaid rent and other money-related issues. If you’re staying long-term, you may be offered alternative payment plans.

◇Payment Methods

The following payment methods are commonly accepted. Check what options your apartment offers before proceeding with a contract. Credit card payments and convenience store payments are available 24/7.

・Bank transfer (transfer fees borne by user)
・Credit card
・Convenience store payment
・Cash or credit card at a physical store

◇Installment Payments

If you’re signing a long-term contract, it might be difficult to pay for the entire stay up front. Apartments may offer you an option to make monthly payments for extended stays. You can always consult the management company about alternative options, even if it isn’t mentioned in the listing.

You could also use revolving credit, but it would incur extra fees.

■In Conclusion

・The initial cost for monthly apartments is around 150,000 yen (Tokyo, one room or one room with kitchen, one month)
・Additional charges generally don’t apply (unless there’s a change in the contract)
・A lump sum payment is usually required up front
・Some apartments offer monthly payment options
・Payment methods include bank transfer, credit card, etc.

Although the rent of a monthly apartment can be expensive, there are almost no move-in expenses. Costs for moving into a conventional apartment are approximately four to five times the rent, so a monthly apartment can be extremely cost-effective.

On the other hand, these homes require a lump sum payment of the entire stay up front. This can be a drawback for long-term tenants. Try to find promotion deals or properties with installment payment options.