Are you worried that “Japanese rental contracts are too complicated” or “I don’t know what documents I need?”
For foreigners who dream of living in Japan, finding a place to live is the first major hurdle. Many are perplexed by language barriers, cultural differences and unique rules such as “key money” and “guarantor.” In fact, the first time I signed a contract, I was surprised by the unexpected costs and annoyed by the unexplained clauses.
This article explains the “five steps to know before signing a contract”. It offers specific information on everything from the basics of real estate terminology to tips for avoiding problems, with real-life examples.
1. Understanding Japanese rental regulations
Become familiar with “key money,” “deposit,” and other lease rates and durations unique to Japan. The rei-kin is the money paid to the landlord as a thank you for renting a room to you and is non-refundable. The shikikin is the money you leave with the landlord in case of non-payment of rent or damage to the apartment. When you move out, you get the balance back after deducting arrears and repair costs.
The initial cost is approximately five times the rent. We have made an example of the breakdown for a rent of 80,000 yen. (I) Key money: 80,000 yen (for one month’s rent) (II) Deposit: 160,000 yen (two months’ rent is usual) (III) Agency fee: 88,000 yen (for one month’s rent, 10% excise tax) (IV) Advance rent: 80,000 yen (for one month’s rent) (V) Fire insurance: approximately 15,000 yen (for two years) (VI) Key exchange fees. Approximately 433,000 yen.
Leases are usually renewed for “two years”, with a renewal fee (usually one month’s rent) payable at the time of renewal.
2. Preparing the necessary documents
Residence card, proof of income and guarantor are required. A Japanese telephone number and bank account are also required.
The residence card is an identity document issued to foreigners residing in Japan for medium or long-term stays. Proof of income is a document that proves a stable income. The guarantor is the person who guarantees the tenant’s obligations.
If there is no guarantor, it is common to “use a guarantor company”.
3. How to choose a real estate agency
It is the same regardless of the agency where you rent your property. The real estate sector is closed and there are many scam agencies. If you want to rent a house at a reasonable price, ask for a competitive budget and look for a good agency.
Some real estate agencies have good services in foreign languages. However, there are few such agencies, which has the disadvantage that there are few properties to choose from and it is difficult to get a competitive quote. If you do not speak Japanese, you can hire an interpreter or find a room with a Japanese friend.
4. Checkpoints when signing a contract
Clarify the rules and repair costs when moving in.
In some cases, more than 100,000 yen can be deducted from the security deposit for “restoration expenses” when moving in. Damage caused by contract clauses or improper use by the tenant may be subject to restoration expenses. However, deterioration due to the passage of time or normal use is not the tenant’s responsibility.
Take photos of the room from all angles when you move in and share them with the management company.
5. Life-saving support after moving out
Learn to separate garbage.
Tokyo’s 23 wards have different rules for each municipality, such as “burnable garbage = twice a week.” Obtain a multilingual waste sorting chart from your ward office or look up the sorting method on the municipalities’ websites.
Understanding and practicing waste separation rules correctly is also important for establishing good relations with the local community.
Conclusion
Anyone can improve their life in Japan with proper preparation. Eliminate housing-related worries and focus on new challenges!
