Finding Housing in Japan and Korea as an ASEAN Student: Guarantors, Key Money and Agency Fees

Why Renting Feels Harder as a Foreign Student

Private rental markets in Japan and Korea run on systems that assume long-term local ties: a Japanese or Korean guarantor, a domestic bank account, and sometimes a credit history. International students, including ASEAN students, usually lack all three when they first arrive, which pushes most first-time renters toward university dormitories or purpose-built international student housing before they consider the open rental market. Learning these systems before you arrive saves money and stress once you land, since the first weeks in a new country are the wrong time to negotiate an unfamiliar deposit structure for the first time.

Japan: Guarantors, Key Money, and Deposits

Most Japanese landlords require a guarantor (hoshōnin) who agrees to cover rent if the tenant cannot pay. Students without a relative or sponsor based in Japan use a guarantor company (hoshōnin gaisha) instead, a paid service that stands in as the formal guarantor for a fee, usually charged upfront and again at each lease renewal. Ask your university's international student office which guarantor companies it already works with, since many campuses keep a short list of vetted providers for exactly this reason.

Two separate upfront payments sit alongside the guarantor fee. Key money (reikin) is a non-refundable payment made to the landlord as a condition of signing the lease, a custom that has faded in newer buildings and student-friendly housing but still applies in many private apartments, particularly in central Tokyo. The deposit (shikikin) works differently: it is refundable, covers damage and cleaning costs, and gets returned, minus deductions, when you move out.

Ask about both charges before you sign anything, since some newer buildings and student-oriented management companies waive key money entirely to attract international tenants, while older buildings in central Tokyo still expect it as standard practice.

Korea: Jeonse Versus Wolse

Korea's rental market runs on two very different deposit models. Jeonse is a large lump-sum deposit, paid once, with no monthly rent for the length of the lease, and the landlord returns the full deposit when the tenant leaves. Wolse pairs a smaller deposit with a monthly rent payment, closer to the rental model most ASEAN students already know from home.

Jeonse requires far more upfront capital than most international students can raise, which makes wolse the practical choice for almost all foreign students in Korea. Wolse still asks for a deposit (bogeumgeum) on top of the monthly rent, and that deposit amount varies by city, building age, and neighborhood, so get a specific figure from the landlord or agent before you commit rather than relying on a general estimate. Korea's official Study in Korea portal points incoming students toward their host university's housing office as the first stop for this kind of local detail.

Korean media reported a wave of jeonse fraud cases in 2023 and 2024, where landlords defaulted on deposit returns, which pushed many international students and their universities toward recommending wolse or dormitory housing over jeonse arrangements, since deposit protection for jeonse tenants is weaker than in some other countries.

What Landlords and Guarantor Companies Check

Landlords and guarantor companies in both countries look at proof of enrollment, a bank statement or scholarship letter showing you can cover rent, and sometimes a local phone number and residence card, which international students only receive after arrival. This creates a timing gap: you often cannot finalize private housing until after you land, which is another reason dormitory placement or short-term guesthouse booking for the first weeks works better than trying to lock in a private lease from abroad.

Where Agency Fees Fit In

Both countries route most rental transactions through a real estate agent, who charges a commission for arranging the lease, typically split between landlord and tenant or paid by the tenant alone depending on local practice. Confirm who pays the agency fee and how much before you view properties, since this cost sits on top of the deposit, guarantor fee, and any key money.

Start With the University Housing Office

JASSO operates international exchange residences directly in Tokyo and Kobe, alongside broader housing guidance for students placed at other universities, and most Japanese and Korean university international offices run a similar first-stop service: dormitory placement plus a list of partner guarantor companies or landlords who already understand international tenants. Apply for dormitory housing as early as your offer letter allows, since spaces fill up fast and going straight to the private market as a first-time renter with no local guarantor is the hardest way to start.

• Ask your university whether it has a dormitory or partner housing option before you look at private listings.

• Request the guarantor company list your university already works with, rather than picking one at random online.

• Get every fee, key money, deposit, guarantor fee, and agency commission, in writing before you sign.

• Budget for the total upfront cost, not just the monthly rent, since Japan and Korea can both ask for several months of costs before you get the keys.