When moving to Japan, it’s important to be aware of the assumptions and expectations you bring with you from your home country. Tokyo is a very westernised and liveable city, however, this doesn’t mean the rental market works the same as New York or Sydney. 

Of all the incorrect assumptions foreign residents make about renting in Tokyo, the following are the top stress-inducers and time-wasters. If you can avoid these pitfalls, you’ll have a smoother house-hunting experience. 

Pitfall #1: Expecting a furnished property

Believe us when we say, in Japan, you’re lucky if your apartment comes with light globes. Unlike rentals in the US, long-term apartments in Tokyo don’t include furniture or appliances, with some older rentals even requiring tenants to purchase their own kitchen stove. Of course, there are exceptions to every rule and you may occasionally come across apartments with washer-dryers (or luxury properties with refrigerators). However, restricting your search to properties with appliances will leave you with few options from which to choose.

Apartments with furniture are available but are generally marketed for short term use — think holiday rentals and apartments for business stays. Short-term furnished rentals and serviced apartments are a great place to stay while you’re apartment hunting but may not offer the best long-term value. Also, although high-end options such as Oakwood offer comfortable rooms with a designer aesthetic, the furnishings in low-cost providers tend to be sparse and basic. 

Before you splash out on a furnished pad, check the price of unfurnished properties in the same area and see if you’re better off buying your own furniture. If you’re worried about the cost, keep your eye on Tokyo Craigslist and Facebook “Sayonara Sales” and you might just score yourself an entire apartment worth of goods from an expat leaving Japan. 

Pitfall #2: Banking on splitting the rent

If you’re planning on splitting rental costs with a friend, think again. Tokyo doesn’t have a flat-sharing culture, with its unique real estate market comprised largely of single-occupancy households. Not only are apartments with multiple bedrooms expensive, but your application to share is likely to be rejected.

When you submit your apartment application, it first enters a screening process in which the property manager verifies your details, salary, emergency contact and so on. Most property managers abide by the “three-times rule”, where the applicant’s monthly before-tax salary must equal three times the price of rent or higher. Unless you’re engaged, married, or renting with an immediate family member, you won’t be allowed to combine your income with another person to meet this threshold. 

Although apartments that allow sharing are not unheard of, they are extraordinarily rare and have their own salary screening rules. The best option for foreign residents looking to share is UR Housing, a public housing initiative formed by the government which allows “room share” for some properties. However, be prepared to go on a waiting list if you hope to rent a UR apartment within central Tokyo.

Alternatively, you can share the Japanese way and look into the stylish dormitory-like share apartments cropping up across the city.  

Pitfall #3: Underestimating the move-in cost

Move-in fees in Western countries such as the US and Canada primarily consists of a deposit and the first month of rent. If you come to Japan expecting the same, you’ll find yourself in a difficult situation. 

The initial cost of moving into a long-term Japanese rental ranges from three to five months of rent or higher. This is comprised of:

• 1–2 months of deposit
• 0–2 months of key money
• First month of rent in advance
• Agency fee
• Guarantor fee
• Other fees

Read here for more information on the above fees.

Fees can be negotiable depending on the competitiveness of the market, but you won’t be able to start this process until you’ve submitted your application. If the owner is confident another applicant will come along and not ask for a cheaper deal, they’ll have no qualms in declining your request. 

By all means, seek out the best deal possible, but also prepare for the worst. This way, you’ll have the ability to move when you want to, and the freedom to choose the apartment you like best. 

Pitfall #4: Applying too late

There are 38 million people in the greater Tokyo area and tens of thousands move into the capital each year. If you’re not from a big city, you may be used to slower rental markets where you can view several properties, sleep on it, and apply for your favourite the next day. However, you may not have this luxury in Tokyo where it’s common for good properties to be snapped up within hours of being put on the market. It’s vital to know what you want and to book a viewing as soon as you find it, as it may not be there the next time you look.

Japan’s first-in-first-served application process is another factor to keep in mind when viewing apartments. Potential tenants are screened one at a time and other applicants won’t be considered unless the first one fails the screening. This means a great wage at a big company doesn’t make you a shoo-in for an apartment. If someone else applies before you, even if they don’t look as good on paper, they will be accepted provided they tick all the boxes. 

Unlike in other countries, apartment applications in Japan are free and non-binding. If you view an apartment and are fairly confident you’d like to live there, don’t sleep on it! Send in the application first and withdraw it if you change your mind. 

Pitfall #5: Using a regular Japanese real estate agency

Are you someone who has dedicated years of their life to studying Japanese? Perhaps you’ve been in Japan for quite some time and confidently handle daily errands in your second language? If this sounds like you, then you may be tempted to stroll down to a local Japanese real estate office to begin your search for an apartment. 

Sadly, discrimination is rife in Japanese real estate, and even if the real estate agency is eager to assist you, they may have difficulty finding an apartment that will accept your application. 

Before your application even gets to the owner, it first must pass through the property manager. If this person has been instructed to refuse foreign tenants, it won’t matter if you’ve passed N1 and have a degree in tea ceremony — the answer will be no. 

Japanese agencies are used to working with Japanese people and are often unaware of which property management companies reject foreign tenants. You may be shown floor plans for great apartments in the area, and perhaps even send in an application, only to find out you don’t qualify. This ends up being a huge waste of time for you, not to mention the emotional upset of being rejected on the basis of your nationality. 

You can avoid the lost time and disappointment by renting through an agency specialising in apartments for foreign residents such as Apts.jp. All the apartments on their website are guaranteed to be foreigner-friendly, and they also perform custom in-depth searches of the Japanese real estate databases to find listings that are likely to accept your application.

Article contributed by Apts.jp

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