Renting an apartment in Japan can be a complex experience, especially if you’re not familiar with the country’s unique real estate system. What seems straightforward in other countries often comes with unexpected twists here. From language barriers to unfamiliar legal procedures, it’s easy to make mistakes that can lead to costly or frustrating outcomes. Whether you’re planning to relocate or are already living in Japan, avoiding these common pitfalls will save you time, money, and stress. Here are seven mistakes that foreigners frequently make when renting in Japan—and how you can avoid them.
1. Not Understanding the “Key Money” Concept
One of the most baffling aspects of renting in Japan for foreigners is the concept of reikin (礼金), or key money. Unlike a security deposit, this payment is a non-refundable gift to the landlord, typically amounting to one or two months’ rent. The idea of giving money and getting nothing in return can be hard to swallow, but it’s a longstanding tradition in Japan.
Avoid it by: Looking for apartments that don’t require key money, which are becoming more common, especially in larger cities. Websites like GaijinPot Apartments and Suumo list options with zero key money (reikin zero).
2. Skipping a Guarantor Service
Many landlords in Japan require a guarantor, known as a hoshonin (保証人), who takes on the responsibility of paying your rent if you default. For foreigners without local family or friends, finding a guarantor can be difficult. Thankfully, many property agents and landlords accept guarantor companies (hoshonin gaisha), but you’ll still need to know how the system works.
Avoid it by: Using a guarantor company from the start. They typically charge a fee, but it’s a small price to pay for easing the process. Most rental agencies will guide you to reputable companies, and some apartments even have arrangements with specific services.
3. Not Budgeting for Upfront Costs
The initial cost of renting in Japan is often shocking. In addition to first month’s rent, you’re looking at deposit (shikikin), key money, agency fees (chukai tesuryo), and sometimes a guarantor company fee. This can amount to four to six months’ rent upfront. Many foreigners underestimate these costs and find themselves scrambling.
Avoid it by: Researching all potential costs early on. Websites like SUUMO or Homes.co.jp can help you calculate average costs, so you’ll have a realistic idea before apartment hunting. Consider looking for zero deposit, zero key money options (shikikin/reikin zero) to reduce upfront payments.
4. Neglecting to Check for Foreign-Friendly Policies
Some landlords in Japan are still hesitant to rent to foreigners. While this has improved in recent years, it’s not uncommon to face rejection simply because you’re not Japanese. Language barriers and concerns over understanding the rules are often behind this reluctance.
Avoid it by: Working with agencies that specialize in foreign tenants. GaijinPot, Real Estate Japan, and Sakura House are excellent platforms to start with. These agencies not only cater to foreigners but often provide bilingual support, ensuring that you understand the lease agreement and the expectations clearly.
5. Signing a Lease Without Fully Understanding It
Leases in Japan can be long and detailed—and usually, they’re entirely in Japanese. While it might be tempting to skim through and just sign, this is a mistake. There may be clauses regarding moving out, renewing your lease, or strict rules on apartment use that you won’t realize until it’s too late.
Avoid it by: Having someone translate the lease for you. If you don’t speak Japanese, ask the real estate agent for an English copy or have a bilingual friend go over it with you. Some agencies that specialize in helping foreigners offer leases in English or provide translations of key terms.
6. Not Asking About the “Renewal Fee”
In many cases, when your lease is up (usually after two years), you’ll need to pay a renewal fee (koshinryo), which can amount to one month’s rent or more. This fee comes as a surprise to many first-time renters in Japan, who assume they can just continue renting without additional charges.
Avoid it by: Clarifying renewal terms before signing the lease. Ask the landlord or agent if a renewal fee is involved and how much it will be. If you’re planning to stay long-term, this is a cost you’ll need to factor into your future budget.
7. Forgetting to Check for Hidden Maintenance Fees
Even after all the initial payments are made, you might be hit with ongoing maintenance fees (kanrihi or kyouekihi). These fees cover building maintenance, common area cleaning, and other shared expenses, which aren’t always included in the listed rent.
Avoid it by: Asking upfront about any additional fees. This should be clearly listed in the rental agreement, but if it’s not, make sure to ask. These fees can vary widely depending on the building and its amenities, so it’s important to know what you’re getting into.
Final Thoughts
Renting an apartment in Japan isn’t impossible, but it does require an understanding of the unique local customs and expenses. By familiarizing yourself with key money, the guarantor system, and hidden fees, and by working with agencies experienced in helping foreigners, you’ll avoid many of the common traps. Renting in Japan can be a smooth and straightforward process if you plan well—and knowing what to avoid is half the battle.
Happy house hunting!
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