The Unique Challenges of Renting in Japan — Part 3
Part 3: Dealing with application process
In my home country of the UK, renting is a pretty simple affair. It’s not uncommon to be able to sign the contract on the same day as the viewing.
Not so in Japan!
Renting an apartment in Japan can potentially be a long, complicated and drawn-out process; especially so if you don’t have Japanese citizenship.
In the first part of this three-part article I introduced a hassle-free alternative: renting a room in a share house for foreigners. This is often the best solution for those just starting out in Japan.
However, those of you have been in Japan for a while might want to try renting an apartment. If this is you, stick around because I’m going to tell you everything you need to know.
In the second part of this article I explained how to find a suitable apartment.
In this last part I’m going to explain how to go about starting the rental application process.
Step 4: the rental application process
Renting an apartment in Japan will more than likely involve more requirements than you would expect in your home country.
For simplicity, I’ve divided these requirements into two sections:
- Costs
- Paperwork
COSTS
Below is a list of possible upfront costs. Your agent will probably not demand all of them.
First month’s rent. Pretty standard. Some swanky places may even want the first two months’ rent.
First month’s apartment maintenance fee. Again, pretty standard.
Security deposit. In case you trash the place. Usually about one month’s rent, maybe a little more.
Agency fee. Usually about a month’s rent.
Key money. 礼金 (れいきん, reikin) is known as “key money” in English. 「礼」(れい, rei) means “thanks”, and 「金」 (きん, kin) means “money”, so a more accurate translation is “thank you money”. As in, “thank you Mr/Ms Landlord for letting me live in your apartment.” It’s usually about a month’s rent. Sometimes it can be two months. A lot of tenants resent this, and recently it’s becoming less common. However, as a general rule, the places for which key money is demanded tend to be nicer than those for which it isn’t, thus leading to the necessity of paying key money becoming a signifier of quality. This article on GaijinPot explains the origins of “key money”.
Property insurance. Japan has a lot of earthquakes, so this makes sense. It’s usually about 10,000 to 20,000 yen (you will be charged yearly).
Cleaning fee. The agency will clean your apartment before you move in. They generally do a really good job, and may even provide a new toilet seat.
Lock-changing fee. Something tells me this is just another name for “agency fee”, but who knows, maybe they do actually change the locks?
Other random extra costs. The costs listed above are all pretty common, but every situation is different. There is a chance that your landlord / letting agent might demand some extra charges. They probably won’t be very big though. When I moved in to my new apartment, one of the upfront costs listed was for something called a ベッドパッド (bed pad?). What is this? A mattress? The bed itself? Who knows. It was only 700 yen though so I didn’t query it.
As you can see, moving house in Japan can be expensive and is not something that should be undertaken lightly.
PAPERWORK
You will need to provide:
Your residence card
Your passport and visa
Your Japanese bank account
Japanese phone number
Proof of full-time employment. For example, your employment contract. Typically you will also need proof of your salary (usually wage slips for the last three months. Or maybe 6 months if your landlord is feeling strict).
If you’re a full-time student, you will need a letter from your educational institution.
Bear in mind that many landlords prefer their tenants to be in full-time employment for obvious reasons. If you are a full-time student, the number of available apartments may be limited. There are apartment agencies which don’t seem to have a problem with students, the most notable being MiniMini.
An emergency contact (or maybe two). This may have to be someone in Japan. A friend may be acceptable. Your employer may also be acceptable. It may have to be a relative. This differs depending on the agency and the demands of the landlord.
A guarantor. This is one of the biggest hurdles for foreigners looking to rent an apartment in Japan. A guarantor is someone who will pay your rent if you suddenly disappear. Usually this has to be a Japanese relative, living in Japan, in full-time employment. Good luck with that!
Fortunately there are some ways around this:
1) If you work for a large, well-established company, your landlord may accept your employer as your guarantor. Maybe. (Also, your employer has to accept this. Usually only the bigger ones are in a position to do this.)
2) Many foreigners employ the services of a guarantor company. This is a company who will act as your guarantor in return for a fee. Sometimes the fee is a one-off. Other times it’s paid monthly and works a bit like insurance. However, some strict landlords might not accept this.
3) Sometimes you won’t need a guarantor! (However, as a general rule these tend not to be the nicest places.)
For more information on rental guarantors, check out this article on GaijinPot.
All this paperwork will have to be checked to make sure everything is in order, so be prepared to do some waiting!
You may also need a hanko (an ink seal), although this is becoming less of a requirement these days.
Once everything is approved, you’re ready to move in!
Important! The requirements listed above are the most common that prospective tenants are asked to provide. Requirements differ greatly between letting agents and between landlords.
Changing times — a way to overcome these obstacles
Due to the difficulties many foreigners face when meeting the above requirements, many letting agents have realised that there is a growing market for providing rental services to foreigners. These agents are familiar with the issues that foreigners face, and can either offer apartments for which these requirements are not necessary, or give realistic and practical advice to overcome these obstacles.
Some companies which offer these services are MiniMini and Apartment Japan. There is a larger list on this page on the Matcha website. GaijinPot also has a list of apartments to rent.
Another option is to go with a share house company. As I mentioned in the first part of this article, some share house companies now offer individual apartments as well as share houses.
Have you ever rented in Japan? If so, how was your experience?
