Kyoto, Japan



How to Rent a Home in Japan

By Betsy Burlingame

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CitizenM

Summary: Renting a home in Japan for the first time can be daunting. You probably have so many questions: Do I need a lawyer? Do rentals come with appliances? How do I find good rentals? How do I choose the right neighborhood? The list goes on and on. Here are answers to some of the top questions plus insight from our members living in Japan.

Navigating the process of renting a home in Japan for the first time can feel overwhelming. Numerous questions might arise: Should I consult a lawyer? Are appliances typically included in rentals? How can I discover quality rental properties? Which neighborhoods will best suit my needs? These are just the tip of the iceberg. Dive in for answers to these pressing questions and gain insights from our members who've made Japan their home.

"Moving to Japan can be an exciting adventure, but finding the right apartment can seem daunting. This guide aims to simplify the process by providing essential information about renting an apartment in Japan, including how to find properties, the role of real estate agents, necessary documents, and other practical tips.

How Do You Find a Rental Property in Japan?

Finding a rental property in Japan typically involves using online property portals, visiting local real estate agencies, or consulting with relocation services. Popular websites like Suumo, Chintai, and Home's allow you to search for properties based on various criteria. Real estate agencies can provide personalized assistance, but their services may come with fees. Additionally, some companies may provide relocation support for their expat employees.

Does Japan Have an MLS Type System?

Japan does not have a centralized Multiple Listing Service (MLS) like the one used in the United States. Instead, real estate information is dispersed across various platforms and agencies. This means you may need to search multiple sources to find the most suitable properties. Some websites may aggregate listings, but they do not cover every available property.

Do Brokers Have Licenses and How Do I Know If They Are Licensed?

Real estate agents in Japan are required to have a license called "Takken" to operate legally. To verify if an agent is licensed, you can ask to see their license or check the Ministry of Land, Infrastructure, Transport, and Tourism's website. Most legitimate real estate agencies will display their license prominently in their office.

Should I Buy or Rent in Japan?

Whether to buy or rent in Japan depends on your personal circumstances, including your budget, length of stay, and future plans. Buying a property can be expensive and complex due to high upfront costs and potential language barriers. Renting is generally more flexible and suitable for expats with shorter-term plans or those who prefer not to commit to a long-term investment.

Is It Difficult to Find Rentals in Japan?

The difficulty of finding rentals in Japan varies depending on the location and type of property. Major cities like Tokyo and Osaka have a high demand for housing, which can make the rental market competitive. However, there are usually plenty of options available, and working with a real estate agent can help streamline the process.

What Documents Are Required When Renting an Apartment in Japan?

To rent an apartment in Japan, you will typically need the following documents: a valid passport or residence card, a certificate of employment or student ID, a Japanese phone number, an emergency contact in Japan, and sometimes a personal seal (inkan). Additionally, you may need to provide a guarantor who lives in Japan, or use a guarantor company for a fee. Some landlords may also require a Japanese language ability certificate or a co-signer.

Do I Need a Lawyer When Renting an Apartment in Japan?

It is not typically necessary to hire a lawyer when renting an apartment in Japan, as real estate agents usually handle the paperwork. However, if you encounter complex legal issues or need assistance negotiating your lease, consulting with a lawyer can be beneficial. Legal fees vary, but you can expect to pay around ¥50,000 to ¥200,000 ($450 to $1,800 USD) or more, depending on the services required.

How Long Is the Typical Lease for in Japan?

The typical lease length in Japan is two years. However, lease terms can vary, and some landlords may offer one-year leases or allow for shorter-term contracts with a higher rent. Renewing a lease is usually possible, but it may come with additional fees.

Do I Have to Pay a Deposit When Renting in Japan?

Yes, when renting an apartment in Japan, you will typically need to pay a deposit called "shikikin," which is usually equivalent to one to three months' rent. This deposit is held until the end of the lease and is used to cover any damages or unpaid rent. If the apartment is in good condition when you move out, the deposit should be refunded, although there may be deductions for cleaning and minor repairs.

What Other Upfront Costs Are There When Renting in Japan?

In addition to the deposit, you may need to pay key money ("reikin"), which is a non-refundable gift to the landlord typically amounting to one to two months' rent. Other upfront costs can include the real estate agent's fee (usually one month's rent), a lock-changing fee, a guarantor company fee (if applicable), and renter's insurance. These costs can add up significantly, so it's essential to budget accordingly.

Are Utilities Included When Renting in Japan?

Utilities are typically not included in the rent in Japan. Tenants are usually responsible for setting up and paying for their own electricity, gas, and water services. These utilities can be relatively expensive compared to other countries, with costs varying depending on usage and the provider. Internet and phone services are also usually the tenant's responsibility.

Are Furnished or Unfurnished Rentals More Popular in Japan?

Unfurnished rentals are more common in Japan, especially for long-term leases. Unfurnished apartments typically include a stove and sometimes a refrigerator, but other appliances and furniture are not provided. Furnished apartments are available, particularly for short-term or serviced accommodations, but they tend to be more expensive. In unfurnished apartments, tenants are usually expected to provide their own lighting fixtures, curtains, and other furnishings," said one expat living in Japan.

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Expats Talk about What Type of Housing They Live In

"I lived in a Mansion ( high rise) 10 yrs ago off base. I had a agent find me a place. Its best to have a Japanese represent you to landlords. They will speak for you & if any problems ,can represent you," said one expat living in Kanagawa Perfecture.

Expats Talk about How they Found their Home

"One way to find a place to live in Japan is to use a real estate agent. Real estate agents can help you find a place that meets your needs and budget. You can also search online for rental listings, or contact local universities or companies to inquire about housing options. Additionally, you can look for classified ads in newspapers or on bulletin boards in public places. Finally, you can ask friends or family who live in Japan for advice and recommendations," commented an expat living in Japan.

"The initial cost is about 3.5~5 times of monthly rent which is included the rent in next month and any other additional charge. You also have an option for short-term contract apartment which is called "monthly mansion" in Japanese. It makes to you to have thinking time to explore and find your thought clearly, you can even register the address there and get the bank account or phone number here. It is sometimes difficult for foreigners to pass the screening for housing application because it is usually required Japanese conversation capability, the phone number, and emergency contact here. Quality of Japanese lease apartment is well so you do not have to consider too deep but please remember there is no furniture installed at all but air conditioner," said an expat in Tokyo.

"I live on base but I have lived off base before. They don't insulate their homes out in Japan. I would suggest a electric blanket., Space heaters for your rooms for the winter. I know the military use gas ones not elec," remarked one expat who made the move to Kanagawa Perfecture.

About the Author

Betsy Burlingame Betsy Burlingame is the Founder and President of Expat Exchange and is one of the Founders of Digital Nomad Exchange. She launched Expat Exchange in 1997 as her Master's thesis project at NYU. Prior to Expat Exchange, Betsy worked at AT&T in International and Mass Market Marketing. She graduated from Ohio Wesleyan University with a BA in International Business and German.

Some of Betsy's articles include 12 Best Places to Live in Portugal, 7 Best Places to Live in Panama and 12 Things to Know Before Moving to the Dominican Republic. Betsy loves to travel and spend time with her family. Connect with Betsy on LinkedIn.


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