Rent

Renting a home in Japan differs in several important ways from renting in many other countries. For first-time foreign renters, unfamiliar procedures, fees, and requirements can be confusing. Understanding the rental process in advance can help avoid misunderstandings and unexpected expenses.

Finding an Apartment and the Role of Fudōsan

In Japan, rental properties are almost always handled through real estate agencies known as fudōsan (不動産). These agencies act as intermediaries between landlords and tenants. They introduce available properties, arrange viewings, explain rental conditions, and manage applications and contracts. Renting directly from a landlord is uncommon.

The same apartment may be listed by multiple fudōsan, and agency fees, service quality, and language support can vary. Some agencies specialise in assisting foreign residents and may offer bilingual staff or English explanations, which can be especially helpful for first-time renters.

Once a property is selected, tenants must submit a rental application. Approval is not automatic. Landlords and guarantor companies typically review income, employment status, visa type, and expected length of stay. Applications may occasionally be declined without a detailed explanation, which is standard practice in Japan.

Lease Terms and Contracts

Most residential rental contracts in Japan are signed for a fixed two-year term. At the end of the contract, tenants usually have the option to renew, often by paying a renewal fee, commonly equivalent to one month’s rent. This renewal fee is standard practice and should be anticipated from the beginning.

Early termination is usually permitted, but tenants are typically required to give one to two months’ notice. Some contracts include penalties if the tenant leaves before a minimum occupancy period.

Rental agreements are generally written in Japanese. While English support is increasingly available in major cities, first-time foreign renters should confirm whether contract explanations are provided in English and ensure they understand all terms before signing. Verbal explanations may be helpful, but the written contract is legally binding.

Initial Costs

One of the most notable aspects of renting in Japan is the high upfront cost. In addition to the first month’s rent, tenants are often required to pay several additional fees:

• Security deposit (敷金 / shikikin): Usually one to two months’ rent. Part of this may be deducted for cleaning or repairs upon moving out.
• Key money (礼金 / reikin): A non-refundable payment to the landlord, traditionally regarded as a gesture of thanks.
• Agency fee: Typically around one month’s rent, paid to the fudōsan.
• Insurance and administrative fees: Fire insurance is often mandatory.
• Guarantor company fee: Required if the tenant does not have a personal guarantor.

Altogether, initial costs can total four to six months’ rent, particularly in large cities such as Tokyo or Osaka. First-time renters should request a full cost breakdown before applying.

Guarantors and Guarantor Companies

Most landlords require a guarantor — someone who agrees to take responsibility if the tenant fails to pay rent. For many foreign renters, this requirement is met through a guarantor company rather than a personal guarantor.

Guarantor companies charge an initial fee, often equivalent to 30–100% of one month’s rent, and may also require annual renewal fees. Approval by the guarantor company is typically necessary before the lease can be finalised.

Apartment Types and Size

Japanese apartments are categorised by layout using abbreviations such as 1R, 1K, 1LDK, or 2LDK, which indicate the number of rooms and shared living spaces. Compared to many Western countries, apartments — particularly in urban areas — are generally smaller, but they are designed for efficient use of space.

Buildings are also described by construction type, such as reinforced concrete (RC), steel, or wood. These factors affect insulation, noise levels, and durability.

Most rental apartments are unfurnished. Items such as lighting fixtures, curtains, refrigerators, washing machines, air conditioners, or stoves may not be included. First-time renters should confirm what is provided before moving in.

Location and Transportation

Location plays a major role in determining rent. Apartments closer to train or subway stations are typically more expensive, as public transportation is central to daily life in Japan. Many residents prioritise commuting convenience over apartment size.

Parking is limited and costly in urban areas, and many apartments do not include parking unless specifically listed.

Pets and Living Rules

Pet-friendly apartments are relatively uncommon. When pets are allowed, landlords often require additional deposits or fees.

Apartment buildings generally have strict rules regarding noise, garbage sorting and disposal, bicycle parking, and shared spaces. Tenants are expected to follow these rules closely, and violations may result in warnings or penalties.

Utilities and Move-In Timing

Tenants are responsible for arranging utilities such as electricity, gas, water, and internet. Gas service usually requires a scheduled safety inspection before it can be activated.

Rent typically begins from the contract start date, not the actual move-in date. First-time renters arriving from overseas should carefully coordinate contract and arrival dates.

Moving Out and Cleaning

When moving out, tenants are commonly charged for professional cleaning, even if the apartment appears clean. This cost is usually deducted from the security deposit. Damage beyond normal wear and tear may result in additional charges.

Practical Advice for First-Time Renters

First-time foreign renters should confirm all fees, renewal terms, and move-out conditions in advance. Asking for written explanations, appliance lists, and bilingual support can help prevent misunderstandings. Working with a fudōsan experienced in assisting foreign residents can significantly ease the rental process.

Glossary of Key Japanese Rental Terms

• Fudōsan (不動産): A real estate agency handling rentals and contracts
• Shikikin (敷金): Security deposit, partially refundable
• Reikin (礼金): Key money paid to the landlord; non-refundable
• Kōshinryō (更新料): Contract renewal fee
• Hoshōgaisha (保証会社): Guarantor company
• Kanrihi (管理費): Maintenance or management fee
• Yachin (家賃): Monthly rent
• 1R / 1K / 1LDK: Apartment layout abbreviations