Housing in Japan broadly falls into three categories: privately rented housing, public housing, and owner-occupied property. Tenants of privately rented housing and public housing may not share the home with anyone outside their family without the landlord’s permission. Even someone who has just arrived in Japan and wants to stay temporarily at a friend’s place must find their own housing as soon as possible. Renting a home in Japan also means working within a set of Japan-specific practices — the deposit, “key money,” and lease-renewal fee — and these vary by region: “key money,” for example, is common in Osaka, while Tokyo more commonly charges a lease-renewal fee.
Terms Used When Renting a Home
Real Estate Agency
A shop that provides information on landlords and apartments, and that sells, exchanges, or brokers the sale or exchange of housing.
Rent
The fee for renting a home, paid monthly. If a tenancy starts partway through a month, rent for that month is calculated and paid based on the number of days actually lived in.
Management Fee / Common Service Fee
The fee covering management of shared spaces (stairwells, corridors, etc.) and shared facilities across multiple households — electricity, cleaning and related costs.
Security Deposit
Money the tenant deposits with the landlord (the property owner) when signing the contract. The amount is typically 1 to 3 months’ rent, and it is used to offset any unpaid rent when the tenant moves out, as well as the cost of repairing damage to the property or cleaning it. Any remaining balance is returned to the tenant by the landlord.
Key Money
A payment made to the landlord as a token of thanks when signing a lease. The amount is generally equal to 1 to 2 months’ rent, and it is not refunded to the tenant. Some properties do not require this payment when renting, and not every region charges key money — it is less common in Tokyo.
Agency Fee
A fee the tenant pays to the real estate agency acting as intermediary. Typically the equivalent of one to two months’ rent.
Property Insurance Premium
If property insurance is required when signing the lease, this fee applies.
Lease Renewal Fee
Money the tenant pays the landlord when renewing the lease. Some properties do not require this fee.
Joint Guarantor (Joint Guarantee Company, Guarantee System)
If the tenant cannot pay rent or cover repair costs, the joint guarantor must take on that responsibility. A joint guarantor is generally an individual with income above a certain amount, though the role can also be outsourced to a guarantee agency. Some local authorities also run their own guarantee programs — check with the relevant local authority or the real estate agency.
Renting an Ordinary Home
Renting private housing must be arranged through a real estate agency. Before signing, the tenant should be fully clear on all the landlord’s requirements. In most cases, the amount the tenant pays when signing the contract is equivalent to 5 to 6 months’ rent.
How to Search
Go to the area where you want to live and ask a real estate agency, telling them your requirements (distance from the station, and so on) so they can provide you with housing information.
You can also simply browse the listings posted at a real estate agency’s storefront, or search for pricing and other information in magazines or online for the area you want to live in. International students can also search for housing through their university’s student affairs office or similar departments.
How to Rent
Renting a private home or apartment requires signing a contract known as a “housing lease agreement,” typically for a two-year term. When signing, the tenant must prepare the following documents and funds.
| Documents Required to Sign the Contract | Funds Required to Sign the Contract |
|---|---|
| 1. Residence card | 1. Current and following month’s rent |
| 2. Proof of income | 2. Security deposit |
| 3. Joint guarantor or a written pledge | 3. Key money |
| 4. Seal registration certificate, etc. | 4. Agency fee, etc. — adding up all of the above, a tenant must pay a total equivalent to 5 to 6 months’ rent when renting |
Things to Watch For When Renting
Bathing Facilities
If the rented home has no bathing facilities, you can use a paid public bathhouse known as a “sento.”
Renovations and Interior Alterations
Without the landlord’s permission, a tenant may not extend, renovate, or make interior alterations to the property, and may not share the home with anyone outside the family. Naturally, the tenant also cannot sublet part or all of the property to someone else.
Advice on Renting
You may run into a few obstacles during the renting process. Here are some suggestions for overcoming them.
- If you do not speak Japanese… go with someone who does. Even a few Japanese greetings will change the impression you make.
- If you have no guarantor… you can use a guarantor agency. Discuss your situation with the real estate agency. Some local authorities may also run a guarantee program — it is worth asking at your local municipal office.
- If a property will not rent to foreigners… actively look, through personal contacts or online, for real estate agencies that specifically serve foreign tenants, and consult them. If a foreign tenant faces discriminatory treatment, they can raise it with a human-rights consultation service, discussed below, which will handle the complaint.
Moving Out
When signing the move-in contract, ask the real estate agency or landlord to explain the move-out procedure in advance.
Many disputes arise because the move-out procedure was never explained, or because the landlord and agency did explain it but the tenant did not fully understand.
Notice to Terminate the Lease
A tenant must notify the landlord of their intent to terminate 1 to 2 months in advance. The specific procedure is set out in the lease agreement (notice sometimes must be given to the landlord in writing to terminate).
Procedures Before Moving
Handle procedures for electricity, gas, water, telephone, post office, financial institutions, National Health Insurance, and school transfers (withdrawal). You must also file a moving-out notification with the municipal office of your current residence (the municipal office will issue a moving-out certificate).
Obligations After Moving
You must go to the municipal office to complete resident registration (moving-in application). When registering, submit your “moving-out certificate” and residence card (submitting a resident registration to the municipal office is treated as simultaneously applying for National Health Insurance and similar programs). You will also need to complete seal registration (if needed), update the address on your driver’s license, and handle school transfers (enrollment), among other procedures (submitting a moving-in application to the municipal office is treated as simultaneously applying for National Health Insurance and similar programs). Your residence card must be presented when completing resident registration.
Have a question about this guide? Leave a comment below, or ask Zagdim directly.
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