Renting a Property in Japan as a Foreigner
When signing a rental contract in Japan, in addition to the rent, you will need to pay a deposit, key money, leasing agency commission fee, and other expenses. Although the total varies, depending on the property and the area, it is generally advisable to prepare funds equivalent to 5 to 6 months’ rent.
Unfortunately, it is pretty challenging to find a family-sized property available for rent in many cities if you are not a long-term resident of Japan or fluent in Japanese.
Another hurdle as far as rentals are concerned the need for a guarantor. Many landlords and leasing agents require a personal guarantor, either a permanent resident or a Japanese citizen. The guarantor commits to meet any delinquent payments owed by the tenant if any issues occur during the tenancy. In other words, this means that the co-signer fully trusts the tenant. Even among native Japanese, it is rare to find individuals who agree to become guarantors for their acquaintances, aside from parents, siblings, and employers. This is further complicated due to the fact that guarantors are required to share their personal information – their name, sex, date of birth, address, place, length of employment, and most significantly, their annual income. If a local company employs you, particularly if you are relocated to a different city by your employer, you may consider asking your supervisor or manager to be your guarantor, which is not uncommon in Japan.
Once a guarantor is nominated, the property management company will begin to vet them via a screening process. They will be required to fill in a personal details form and prepare to hand-in personal documentation, including a seal registration certificate. During this procedure, the leasing agent may contact the company where the guarantor is employed to confirm their tenure – this process usually takes 7-10 working days to complete.
One option is to look for such a person patiently. It is also possible to find a property that does not require a guarantor or the use of a rent insurance company (“aka guarantee company”). Instead, if the property management company and landlord accept such an arrangement, guarantee company fees can vary but are generally equivalent to one month’s rent upon sign-up, and sometimes a similar fee whenever the lease is renewed (typically once every two years of tenancy). The guarantee company will also run potential tenants through a screening process before accepting their applications.
“UR Rental Housing” is a company that does not require a guarantor – it offers many advantages in terms of costs and living environment – however, UR rentals cost more than the average market price and often require rental payments to be made up to a year in advance.
If you are an international student, you may want to use the “Comprehensive Compensation Program for Foreign Student Housing.” This system pays compensation to guarantors if they receive a claim from the landlord to fulfill their guarantee obligation. This system is available to international students (those holding a valid student visa) enrolled in a Japanese university, junior college, or vocational school. For more details, contact the international student support office of your school.
We at Nippon Bridge will do our best to introduce you to reliable real-estate-rental agencies, attend a detailed orientation meeting with them and you, and review the desired location, size, rent, and facilities suiting your lifestyle. In Japan, it is common for tenants to rent apartments up using up to 1/3 of their monthly income- a guideline which we will try and adhere to help you find a suitable living arrangement.
Real estate leasing agents utilize proprietary computer systems and databases to search for suitable properties. However, happen to find a property that you like on your own. We can also make inquiries on your behalf and attempt to facilitate the rental of the desired property. We will check if the selected properties are available for viewing on your behalf, schedule a viewing date, and accompany you to the viewing if necessary.
After applying for a property, in most cases, you should allow one to two months, subject to your screening by the guarantee company or the screening of your guarantor, as well as for the property to be cleaned and prepared for move-in.
