Searching for Rentals in Japan: A beginner's guide

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In nearly all instances, initial fees such as the security deposit and key money will be charged when renting a property. Usually, in addition to the security deposit and key money, other fees are also required at the time of contract, including insurance, a brokerage charge paid to the real estate agency, and several months rent. Be careful, because fees can greatly differ depending on the set conditions for the property.

Fees required at the time of contract.

Key Money

A custom unique to Japan requires paying the property owner a payment of gratitude, which is generally 1–2 months of rent. However, in recent days, there are many properties not requiring key money. Key money is not returned when you vacate the property.

Security Deposit

This one-time fee is paid to the property owner as a kind of security deposit and in many cases is equivalent to 1–2 months of rent. In contrast to the key money, it is returned when you vacate the property, but there are instances when the majority is not returned because the property has been damaged or soiled.

Brokerage Charge

This fee is paid to the real estate agency that served as an intermediary for the contract agreement and is restricted by law to 1 month’s rent. In some cases, it is half a month’s rent or not charged.

First Month’s Rent

This is the first rent paid at the time of contract. In most cases, one-month’s rent is calculated on a daily basis and the fee is paid according to the number of days from the day the contract is signed until the day the next rent is due. Therefore, the amount differs in relation to the time the contract is signed.

Non-life Insurance Premium

This insurance fee is paid to cover emergencies, such as fire. In most cases, it is 10,000–20,000 yen. Purchasing this insurance is required for some properties.

Monthly fees.

Rent

Generally, rent can be paid by bank transfer, at convenience stores, or through account transfer where the rent is automatically withdrawn from your bank account each month. In most cases, payment by credit card is not allowed.

Maintenance Fees (Common-service Fee)

Fees incurred for maintaining/managing the apartment building, such as repairs and cleaning of common areas, are added to the monthly rent. The fees vary, from properties that do not charge to properties that charge 10,000–20,000 yen a month.

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Fees Charged When Moving

Take note of 6 common problems!

At times, unexpected troubles can arise because of customs that differ from those in your own country. Here, we will introduce problems that tend to arise for non-Japanese residents. Be sure to carefully review them before moving in!

  • Separating Trash

    In Japan, trash is carefully separated into categories such as “burnable trash,” “non—burnable trash,” and “recyclable trash,” and each category is collected on a particular day. Rules differ according to location, so be sure to set out your trash on the prescribed day and at the predetermined place.

  • Noise

    Many rental properties in Japan are built out of wood and have thin walls, so noises carry next door and to the floor below more than you think. When you have a party or invite over friends, you must be very considerate of your neighbors. Of course, playing musical instruments, etc. is prohibited.

  • Back Rent

    You must faithfully pay the rent by the specified date. Be aware that significant problems can occur in serious cases where payment is repeatedly late or in arrears for several months.

  • 2 Persons Living in a 1-person Property

    In the majority of cases, the number of persons that can reside in a property is stipulated in the contract. Friends or girlfriends/boyfriends living together in a one-person rental is not allowed. If it absolutely cannot be helped, first consult with the real estate agency.

  • Name Lending

    Subletting your rental property is a serious breach of contract. Be aware that renting a property for an acquaintance who for some reason cannot enter into a rental contract his/herself is prohibited.

  • Renovation/Remodeling

    When a rental property is vacated in Japan, a request can be made for “restoration to original state,” or in other words, “return of (the property) in the state it was in at the time of rental.” Basically, renovations to the rental property, such as changing the wallpaper or pounding nails into the wall without permission, are forbidden.

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