Key Money and Apartment Hunting as an English Teacher Abroad

Moving to a new country to teach English is an exciting adventure, but finding a place to live can sometimes feel like a second full-time job. For many teachers working with large language schools, the question of housing assistance often comes with a lot of fine print. One of the most common questions that pops up in staff rooms and group chats is about upfront costs, especially that mysterious term “key money.”

So, what exactly is key money, and do you have to pay it if your company helps you find an apartment?

What is Key Money?

Key money is a common practice in several countries, most notably Japan and South Korea. Simply put, it’s a non-refundable payment made to the landlord as a “gift” or a “token of gratitude” for allowing you to rent their property. Unlike a security deposit, you don’t get key money back when you move out. It can range anywhere from one to several months’ rent, making it a significant upfront cost for any new arrival.

Does the Company Cover It?

This depends entirely on your contract and the company’s policy. For large language schools like Nova (or similar chains), the answer is often “no” when it comes to covering key money. Most companies that offer apartment assistance typically handle the logistics—finding the unit, introducing you to the landlord, and sometimes helping you sign the lease. However, the actual financial obligations like key money, security deposits, and agency fees usually fall on the teacher.

Reading the Fine Print

Before you get too excited about a company-provided apartment, read your contract carefully. Look for phrases like “housing assistance” versus “company-paid housing.” Assistance usually means they will connect you with a real estate agent or a list of available properties. Company-paid housing means they cover the rent or a portion of the upfront fees. With Nova and similar employers, the standard setup is assistance, not coverage.

Typical Upfront Fees to Expect

If you are renting a company-assisted apartment, you should budget for several fees:

• Key Money (Reikin): 1–2 months’ rent, non-refundable.
• Security Deposit (Shikikin): 1–2 months’ rent, refundable if you leave the apartment in good condition.
• Agency Fee: 1 month’s rent paid to the real estate agent.
• Guarantor Fee: Sometimes required if you don’t have a local guarantor, which is common for foreigners.
• First Month’s Rent: Paid upfront.

In total, you might be looking at 4–6 times the monthly rent just to move in.

How to Handle the Situation

If you are in a situation where the company is only helping you find a place, do not assume they will cover the fees. Ask your HR representative or supervisor directly for a detailed breakdown of costs. Request a copy of the lease in advance so you can see what you are agreeing to.

A Better Approach: Ask for a List of Options

Some teachers find it easier to negotiate. Instead of taking the company’s first apartment suggestion, ask for a list of nearby options that do not require key money. Some newer apartment buildings in Japan and South Korea are marketing themselves as “zero reikin” (no key money) to attract foreign tenants. This can save you thousands of dollars.

Final Thoughts

Teaching abroad is about embracing new experiences, but it’s also about being financially smart. Don’t let anyone pressure you into signing a lease without understanding every fee. If you feel the upfront costs are too high, consider sharing a guesthouse for the first month while you search for a better deal on your own.

Remember, the company wants you to be settled so you can focus on teaching. But ultimately, protecting your wallet is your responsibility. Ask questions, read the contract, and don’t be afraid to say no if the deal doesn’t feel right.