As in any country, there are a number of considerations to take into account when renting property in Japan. Renting in Japan can present some challenges for non-Japanese, even when they are fluent Japanese speakers.

For instance, one key difference in Japan is that Japanese rooms are often measured by the number of tatami mats (-畳 -jō), while floor area more generally is measured by tsubo (equivalent to two tatami mats). The size of a tatami mat slightly varies by geographical area, but is around 1.8 m by 0.9 m (around 1.65 sq m). However, in Tokyo, the measurement is often only 1.76 m by 0.88 m.

Real estate agencies or landlords may be reluctant to rent to foreign applicants, and they will sometimes refuse to do so outright. This can be related to fears that foreign tenants may be unable to understand the level of Japanese to enter a leasing contract, to understand Japanese customs to do with living spaces, or that they might leave the country without paying rent or officially terminating the contract.

 There are many real estate companies that do rent to foreign applicants though, as well as some agencies that focus specifically on rentals for non-Japanese.Contracts

The usual contract length in Japan is two years. If you are on a 90-day tourist visa, you will not be able to secure a long-term rental property.

Contracts

The usual contract length in Japan is two years. Contracts sometimes stipulate a minimum running period of 6 months. Generally, they can be terminated early without penalties with a one-month notice.

 After a contract expires, you often have to pay a renewal fee equal to one month’s worth of rent to extend it. 

If you are on a 90-day tourist visa, you will not be able to secure a long-term rental property.

Contract requirements

Your Japanese phone number, details of your domestic emergency contact (usually a Japanese person), and copies of your passport and visa are required. It is best if you have a Japanese bank account, few agencies are able to arrange payment via international credit card.

Agencies usually require three months' worth of payslips as proof that you are able to pay the rent. Typically, rental prices are set at 30% of a person's income, so you will need to show you make at least three times the amount your rent will cost to be accepted as a tenant.

The agent will also need to see a letter from your employer, or a certificate of eligibility from the immigration bureau if you are a student.

In most cases, your emergency contact will also be your character reference, but some foreign applicants also choose to have a separate character reference just in case. Again, this should be a Japanese person who is willing to attest to your trustworthiness as a tenant.

Further, a guarantor (hoshonin 保証 in Japanese) is required in Japan to rent a property. The guarantor acts like an insurance and guarantees the landlord that any outstanding dues will be paid. Ideally, your employer will be your guarantor, but some agencies only accept a guarantor company to fill this role. The fees for the guarantor company vary, usually around half a month’s worth of rent.

Note that in the vast majority of cases, you will be renting from a real estate agent rather than directly through a landlord.

Costs

Moving into a new property in Japan involves a number of costs, and can represent several months' worth of rent up-front. The average rent for a one-bedroom apartment in central Tokyo is around JPY 127,000 (USD 1,120) per month.

Below are some of the fees you may have to pay before you move. Bear in mind that you will also need to pay for utilities and other moving expenses.

• Deposit (敷金 shikikin): This is usually equivalent to one month's rent
• Key money (礼金 reikin; literally "gratitude money"): This is usually equal to between one and three months' rent and is not refundable
• Agency fee (仲介手数料 chukai tesuryo): Another non-refundable amount that can be up to one and a half months' rent
• The first month's rent
• Possibly the fee for the guarantor company (hoshonin 保証): Usually half a month’s rent
• Small fees for maintenance, property insurance, and key exchange

Note that some agencies may also charge a renewal fee (更新料 kōshinryō) if you decide to renew your rental contract after each lease period ends.

Real estate companies for non-Japanese

As mentioned earlier in this article, there are real estate companies that exist to help foreigners find rental accommodation, usually in the large metropolitan centres in Japan. They offer short-term leases for furnished or unfurnished apartments and often waive a lot of the fees associated with renting an apartment.

They also have staff who can speak languages other than Japanese. This sometimes drives the monthly cost of the apartment up, but the comparative ease of renting through these agencies makes it worth the extra cost, especially for rental contracts lasting between a couple of months to up to one year.

There are also companies like Oakhouse who run "foreigner houses" or share houses, which are another inexpensive accommodation choice. They range from basic, dormitory-style to luxurious options and are becoming increasingly popular with foreigners and Japanese alike. The best search term to be used online is usually “share house”.

There are also a number of cross-cultural real estate agents in Tokyo, Osaka and other Japanese cities such as Apts.jp that specialise in finding regular, two-year contract accommodation for foreigners. Apts.jp and others provide searchable online English databases of properties for rent that can be filtered by cost, location and whether fees like key money, deposit or an agency fees are charged.

Finally, a service called Bilingual Brokerage Assistance is available to help foreigners with the rental process by acting as an interpreter between the renter and the real estate company. 

Other short-term rentals options

The Japanese government tightened regulations for short-term vacation rentals  in June 2018, which massively affected Airbnb options in Tokyo, which have been reduced to about a fifth of what they used to be. It therefore became harder to find a cheap property on the site for short-term stays, but the option still exists.

Getting help

A service called Bilingual Brokerage Assistance is available to help foreigners with the rental process by acting as an interpreter between the renter and the real estate company. Read more here.

This post was last updated in November 2018 by Mareike Dornhege. 

Further reading: 

Introduction to Japan

Japan real estate glossary

Obtaining finance in Japan

Property taxes in Japan

Type of real estate contracts in Japan