Conventional Japan Rental Companies
Whether you are renting a home or apartment in Japan, a good number of conventional Japan rental companies, rental agents and landlords do not rent to foreigners and the standard practices are not particularly foreigner friendly. Apartments and homes are often rented for a minimum of two years, which is longer than the time period most foreigners stay in Japan. In addition, there is an inherent reluctance to rent to foreigners because they cannot communicate in Japanese. Many agents also request information about the renter's financial background and require renters to have a guarantor co-sign the lease agreement as a further security measure. (Typically only a Japanese national with a satisfactory financial history can act as a guarantor.) In addition, renting with a conventional real estate company in Japan can be very expensive as a number of refundable and non-refundable fees have to be paid (e.g., a reservation fee, a deposit, key money, and a service fee), which can be equivalent to up to 6 months' rent or even more. In most cases, when renting with a conventional Japan real estate company, the apartments are unfurnished and utilities are not included in the rental payment.
Rental Companies for Foreigners
Real estate companies, which specifically target Japan's foreign community, exist mainly in Tokyo and other large cities. They offer private and shared apartments with conditions that are much more suitable to the needs of foreigners, and often have staff trained in foreign languages. For example, they offer rental contracts for much shorter time periods and lower and fewer initial fees than conventional companies. In addition, their apartments are often already furnished, and the cost of utilities may be included in the monthly rent. Many real estate companies for foreigners also operate so called gaijin houses ("foreigner houses"), an inexpensive type of living quarters more akin to a dormitory which may have private rooms, while others target individuals and businesses with larger budgets and with higher standards.
If one is looking for a house or apartment to rent in Japan, there are several points to be kept in mind.
Rent
The amount of rent will depend on the size of the premises, the condition of the premises and the amenities and the location of the rental unit.
Deposit
All properties in Japan need a deposit. The amount of the deposit may vary from two-months rent to four to six months for higher grade properties. The deposit is "officially" refundable. In most cases, a portion of the deposit is deducted to pay for renovation and cleaning of the property when the tenant leaves. Restoration costs can be minimized by maintenance of the property.
Agent Fee / Commission
Industry standard provides that one month's rent has to be paid to the real estate agent as a commission.
Maintenance Fee
Often rentals also require a maintenance fee, which consists of a monthly fee for general building maintenance and, possibly to cover the cost of an on-site building manager.
Time Frame and Steps Involved in Securing an Apartment or Flat
You should generally begin your apartment search at least two weeks before your desired move-in date, although beginning one-week to six-weeks before allows ample time for the owner or landlord to complete any necessary renovations. It is difficult to secure a suitable property more than six weeks before the move-in date, except where the property is currently under construction or, the existing tenant will cooperate in its showing. You should plan on spending as least one day to view properties, and up to a week if special needs are indicated. Once you have located a property you are interested in the following schedule obtains:
Application
Any requests related to the property must be submitted and will be considered by the owner. Requests often include minor maintenance or repair work, the addition of various fixtures, cable or satellite TV. It is best to let an agent guide you in making any such requests as negotiability varies from property to property.
Draft Contract
It is prepared in Japanese and English. If you are relocating with a company, a copy is typically sent to the corporate human resources department for negotiation and approval. The real estate agent also reviews the lease terms.
Final 'Original' Contract
When all parties agree, an 'Original' contract is made. The original is taken to the company for execution, and the fees become due before the lease starts. Japanese landlords usually refuse to turn over a property before receiving payment in full.
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