A Guide to Renting in Japan: Mastering Japanese Real Estate

Securing a Japanese apartment or house can be a challenging and expensive task. When moving to Japan and finding rental housing, you should be aware of various costs that you might have to pay before you move in.

Key money, also known as "礼金" in Japanese, is a fee that tenants are required to pay to the property owner when signing a lease agreement. This fee is not returned to the tenant. Generally, the amount of key money required is equivalent to one to two months' rent. It serves as a form of upfront payment to secure the rental property.

You must clean up the room and fix anything that got broken while you were there. Most of the time, the landlord will return the security deposit if you don't break anything on purpose or by chance when you move out. But they might take cleaning costs out of it.

The renewal fee is a non-refundable charge. The property owner decides on this fee two years after the start of a contract.. This fee can cost between one to two months' rent. It is an additional expense that tenants need to think about when extending their lease agreement.

A brokerage fee (仲介手数料) is a cost that is usually the same as one month's rent, plus a 10% tax. The renter usually has to pay this fee, and it goes to the real estate company. This fee is important because it pays for the services the real estate company provides to help with the rental process.

The renter pays a fee to a guarantor company. Landlords typically ask tenants to pay between 50% and 100% of a month's rent as a deposit. Then, the guarantor company will require a fee of 10,000 yen at the time of contract renewal, either 1 or 2 years later.

A Japanese rental guarantor is someone who promises to pay the rent if the tenant can't. This person or company makes sure the tenant follows all the rental rules, like paying rent on time and fixing any damage. It is a guarantee for the real estate agent that all costs will be paid for, no matter what happens.

For Japanese renters, when they need a rental guarantor, they usually to their parents or grandparents, or even employer, to sign up. Some landlords may have specific criteria for rental guarantors, such as being a Japanese citizen or having a certain income level. However, many foreign residents in Japan may not have these options available to them. Therefore, in this case foreign residents can turn to a rental guarantor company.

Some real estate companies offer rental properties that don’t require a guarantor. However, these rental properties may be more expensive than other Japanese rental buildings. Some of the following companies do not require a guarantor:

• Yolo Japan
• Apts.jp
• Leopalace21
  

When applying for housing in Japan, foreigners need to show important documents to prove who they are and that they can pay for the rent.

• Two main forms of ID: a passport and a residence card or student ID;
• Clear copies of the photo page of your passport, the page with your visa stamp, and both the front and back of your residence card or student ID.
• You also need to show proof of income. This may include recent pay slips from the last two to three months. You may need a copy of your annual tax slip to show you can afford the rent.
• You might also need to provide an emergency contact and a Japanese phone number.
  
  

The rental application process includes a careful background check by landlords. This screening assesses several criteria:

• the applicant's identity;
• stable income;
• is the income at least three times the monthly rent.
  

Landlords also consider the applicant's ability to communicate effectively. Managing companies need to coordinate with tenants for maintenance and neighborhood issues.

Understanding these aspects of the rental application process is important for those moving to Japan. Providing a clearer pathway through the complexities of the Japanese rental process.