Renting An Apartment In Japan

6/10/2024

Finding your dream apartment in Japan – sounds easy, right? Not really! Language barriers, guarantor woes, and hefty move-in costs can turn your apartment hunt into a real headache. But with a little know-how and the right help, you can navigate the rental market and find your perfect place.

Here you will read about rental apartment standards, Japanese terminology for size and space, rent-determining factors, and foreigner-friendly real estate companies.

Renting An Apartment In Japan - Halal In Japan

Guide To Renting An Apartment In Japan

In Japan, apartments are typically rented through estate agents rather than landlords. Real estate offices can be easily recognized by the listings of available apartments or houses shown in their show windows. The rental systems of many conventional real estate companies are not very welcoming to foreigners. Also, most landlords are understandably hesitant to rent their properties to foreigners who have difficulty communicating in Japanese. Some will even refuse to provide services to non-permanent residents in order to avoid any unanticipated tension.

To rent an apartment, tenants should visit real estate agents in each neighborhood and look through copies of available units. If a prospective tenant expresses interest in a specific apartment, the agent contacts the landlord to check if it is still available and if a visit can be scheduled. Real estate agents normally have a copy of the apartment's layout and the rental fees. When speaking with an agent, describe exactly what you are looking for, your preferences, and any conditions that may be a deal-breaker for you.

The distance from the nearest train station, whether or not the building is constructed of concrete, whether or not it has a unit bath, and your budget are all factors that the agents normally consider. Once the agent understands what you are looking for, he or she will begin to offer spots, and you will be able to schedule viewings to see your potential new apartment.

Japanese Apartment Layout Terms

One of the difficulties in finding property in Japan is the distinct terminology used to express the size, space, and conditions. In the Japanese real estate industry, the abbreviation SLDK is commonly used to describe apartments. It represents Storage, Living, Dining, and Kitchen, preceded by the number of rooms. The number preceding the abbreviation indicates the number of rooms separate from the LDK. Some examples are:

1R: One room is equivalent to a studio apartment. This style of apartment often has a bedroom/kitchen and a bathroom/toilet combination room. The average size is 12 to 20 square meters.
1K : A 1K is nearly identical to a 1R; however, with a 1K, the bedroom and kitchen are separate.
1DK: A 1DK has a bedroom and a kitchen/dining area. The overall dimensions are slightly larger than a 1R or 1K.
1LDK: A 1LDK features a separate bedroom and living room. Apartments of this type typically range from 40 to 60 square meters in size.
1SLDK: A 1SLDK is essentially identical to a 1LDK room, with the exception of a big walk-in closet.

Besides the size, there are other factors that determine the cost of the rent, which include:

Location: The most expensive apartments are located close to city centers. The farther an apartment is from the closest train station, the less expensive it is. Apartments near smaller stations (where express trains do not stop) tend to have lower rents. On the other hand, keep in mind that if the apartment is located too close to a train track, you will hear a train rumbling outside your window every few minutes.
Position of apartments: The direction in which the apartment faces is one of the details seen on Japanese property listings. Apartments facing south receive a lot of natural light during the day, making it easy to dry laundry. Apartments facing south are generally more expensive. Apartments facing east will be bright in the morning, making them ideal for early risers, which allows you to take advantage of the sun's position. Apartments facing west will remain slightly brighter as the sun sets, which helps to keep the apartment warmer in the evenings throughout the cold season. Apartments facing north may appear cooler in the summer because much of the sunlight is not directly heating the room, but this also means that winters will be bitterly chilly.
Age of building: It is vital to know whether the building was built before 1981, between 1981 and 2000, or after 2000. The reason is that since 1981, construction requirements have become stricter, with buildings built after 2000 subject to more stringent seismic codes.
Apartment: Apato, "Apartment" usually refers to old buildings that house small apartments. This kind of building is made of wood or light steel and usually consists of only two stories. The walls are thin, and you can normally hear sounds from your neighbors' homes.
Mansion: Manshon "Mansion" refers to modern buildings that have larger apartments. This sort of building typically consists of three or more stories and is made of steel and reinforced concrete. Rent normally is higher than the 'Apato'.

Process Of Signing A Rental Contract

As you probably already know, signing a rental contract with a conventional real estate company is both expensive and time-consuming. Depending on the company and apartment, a few refundable and non-refundable fees must be paid, often ranging from two to ten months' rent. Details as follows:

Reservation Fee "Tetsukekin - 手付金": The tetsukekin is paid when you apply for an apartment but before signing the actual rental contract. It ensures that the apartment is not given to someone else and that you do not change your mind about renting it. It is usually equivalent to one month's rent and is returned to you once the formal contract is signed.
Security Deposit "Shikikin – 敷金": The security deposit is often equal to a few months' rent. This is used to cover any potential future damage to the apartment. When you move out, you will receive your deposit minus the cost of repairs. In Japan, landlords have up to 60 days to return the deposit.
Key Money "Reikin – 礼金 ": This is a non-refundable payment made to the landlord equivalent to a few months' rent. (Reikin is "gratitude money" that new renters pay to landlords for the privilege of moving in).
Agency Processing Fees "Chukai Tesuryo – 仲介手数料": This is a fee paid to the real estate agent for services done, typically equivalent to one month's rent.
Maintenance Fee "Kanrihi - 管理費": Some apartments may need a monthly maintenance fee to cover expenditures shared by all tenants, which is added to the rent "Yachin - 家賃".
Contract Renewal Fee "Koshinryo - 更新料": Apartments are normally rented for at least two years. If the tenant want to extend their stay a few months before the contract's deadline, the agreement is renegotiated. The contract renewal fee is normally equivalent to one month's rent. (This is another "gift" to the landlord for allowing you to renew your contract).

Use A Guarantor Company

Normally, agents want you to provide information about your financial background. You also need to have a guarantor "Hoshonin = 保証人"or a joint guarantor "Rentai Hoshonin = 連帯保証人" co-sign the rental contract as an additional layer of security. Most Japanese people ask a parent or close family member to act as a guarantor for them. Basically, a guarantor should have the following requirement:

A Japanese national
A proof of stable income and financial background
Someone under the age 65

For foreigners as well as some Japanese, finding such a person as a guarantor can be difficult. But luckily, there is another option. You can use a guarantor company. A guarantor company, or 'hoshonin-gaisha' (保証人会社ほしょうじんかいしゃ), will act as a personal guarantor for a fee. If you pick this option, keep in mind that many housing agencies will ask you to use their preferred guarantor company.

The guarantor fee varies depending on the guarantor company and it can range from 10% to 100% of the monthly rent. Before signing, double-check your contract for any future expenses. A guarantee charge of 10,000 JPY per year, or 10% to 30% of the rent, will be paid when the lease agreement is renewed. To apply for their services, you should submit the following documents, which vary based on the guarantor company:

Application form for guarantor companies
Identification documents (My Number card, Residence card, health insurance card, etc.)
Proof of income (Employment certificate, Salary statements, final tax return, etc.)

Here is a short list of foreigner-friendly guarantor companies:

Foreigner-Friendly Real Estate Companies

Renting an apartment is neither cheap nor easy, and it can be particularly challenging for foreigners compared to locals due to several factors, as you read above. Besides the language barrier and guarantor requirement, there are also upfront costs. You need to pay a deposit, a security deposit, agent fees, and the non-refundable key money, which can add up to several months' rent.

Nowadays, there are resources available to help foreigners navigate the rental market. There are foreigner-friendly real estate agencies that often have English-speaking staff. Also, in Tokyo and other large cities, a no-deposit apartment industry has emerged that is often more flexible with guarantor requirements and upfront costs but tends to be more expensive. These apartments come in a variety of forms and prices, ranging from private apartments to dormitory-style housing. Many would also have basic furnishings, saving you from having to purchase furniture. Here are some of these companies: