How to Get a Japan Foreigner Friendly Rental Contract

Rental contracts for foreigners in Japan involve unique business practices and complex procedures that many find confusing. However, with proper knowledge and preparation, it is entirely possible to smoothly proceed with your contract.

This article will explain in detail the important points of rental contracts, rules after moving in, and how to handle problems, providing all the necessary information for foreigners to rent property with peace of mind.

1. Current Situation and Challenges in Rental Contracts for Foreigners

In Japan’s rental market, housing demand from foreigners has been increasing year by year.

Particularly as the number of long-term residents with work or student visas increases, various challenges in rental contracts have become apparent.

Understanding these challenges and responding appropriately is the key to a smooth rental contract.

Increasing Foreign Residents and Changes in the Real Estate Market

In recent years, the number of foreign residents in Japan has been steadily increasing, and accordingly, the rental housing market is undergoing significant changes.

Especially in major metropolitan areas such as Tokyo, Yokohama, Osaka, and Kobe, the demand for housing for foreigners has been rapidly growing, and the real estate market is being forced to adapt to these changes.

Many real estate companies have started offering foreign language services and established departments specializing in serving foreigners, indicating that the market environment is certainly being developed.

Reference: Immigration Services Agency of Japan: Number of Foreign Residents

Main Barriers Foreigners Face in Rental Contracts

When foreigners rent housing in Japan, they mainly face three major barriers: language and communication, Japan’s unique business practices, and challenges in tenant screening.

Language and Communication Challenges

Rental contracts and important explanation documents being available only in Japanese, and difficulties in communicating with real estate companies and landlords are particularly problematic in provincial cities.

Challenges with Japan’s Unique Business Practices

Understanding the security deposit and key money system, dealing with the guarantor system, and the existence of additional costs such as renewal fees and brokerage fees are difficult for many foreigners to comprehend.

Challenges in Tenant Screening

Verification of residence status and period, income verification and occupational screening, and the limited supply of properties that accept foreigners.

The above challenges are major concerns, especially for foreigners who have just arrived in Japan. However, in recent years, efforts to reduce these barriers have been progressing, such as the use of guarantor companies and the development of multilingual services.

2. Important Points When Searching for Rental Properties

When searching for rental properties, it’s important to first find a real estate agency that can provide appropriate support.

Also, when selecting a property, you need to pay attention not only to finding a property that meets your conditions but also to specific considerations related to being a foreigner.

How to Find Real Estate Agencies That Can Accommodate Foreigners

Choosing a real estate agency is an important first step for a successful rental contract.

Metropolitan Areas

• Utilizing specialized real estate portal sites with foreign language support
• Checking real estate company websites with English descriptions
• Using international real estate franchise chains can be effective

Provincial Cities

• Introductions through companies or schools where you work or study
• Consulting with local international associations
• Gathering information from foreign resident communities can be effective means

Especially in provincial cities where real estate agencies with foreign language capabilities are limited, it’s important to utilize the networks mentioned above.

Effective Approaches When Searching for Properties

When actually searching for properties, it’s important to effectively combine online searches with on-site verification.

Online Search

It’s effective to prioritize checking properties with indications such as “Foreigners Welcome” and to utilize portal sites with comprehensive property information in English. If virtual tours or video viewings are available, you can check details in advance.

Property Selection

Comprehensively evaluate commuting or school access convenience, nearby living infrastructure (supermarkets, hospitals, foreign food stores, etc.), the presence of foreign communities, and building security facilities and management systems.

Points to Note

Even for properties without a “Foreigners Welcome” indication, there may be room for negotiation if communication in Japanese is possible or if a company becomes the contractor.

3. Necessary Preparations and Responses for Contracts

When proceeding with a rental contract, various preparations are necessary, from preparing required documents to arranging for a guarantor.

Especially for foreigners, there are additional documents and procedures compared to Japanese nationals, so it’s important to prepare thoroughly in advance.

Required Documents and Methods for Arranging Guarantors

For rental contracts, you need to prepare several basic required documents.

• Residence card (copy of both sides)
• Passport
• Income certificate or withholding tax slip
• Certificate of employment or student ID
• Seal (signatures may be acceptable in some cases), etc.

Documents are important materials for tenant screening, so it’s crucial to prepare them without omissions.

Regarding guarantors, when setting up a Japanese guarantor, it’s common to ask a company supervisor or acquaintance. In such cases, qualification certificates such as the guarantor’s employment certificate and income certificate are also required.

In the case of corporate contracts through a company, documents such as the company’s registration certificate are required.

Reference: Ministry of Land, Infrastructure, Transport and Tourism: Required Documents for Foreign Resident Screening, Apartment Search Guidebook

Tips for Using and Selecting Guarantor Companies

Recently, there has been an increase in cases of using guarantor companies instead of Japanese personal guarantors.

Using a guarantor company not only eliminates the need for a personal guarantor but also provides various benefits such as 24-hour emergency response services, handling of rental troubles, and support for communication with landlords.

Before signing a contract, it’s important to receive detailed explanations about guarantee contents and costs, and to fully understand especially annual renewal fees and special provisions.

4. Understanding Japan’s Unique Rental Contract System

Japan’s rental contract system has many distinctive institutions and rules even from a global perspective. Correctly understanding these systems is essential to prevent unexpected troubles and lead a smooth rental life.

Detailed Explanation of the Security Deposit and Key Money System

Initial costs are a very important element in Japanese rental contracts.

• Security deposit
  Functions as a guarantee money that is refunded when moving out, but cleaning and repair costs may be deducted from the actual refund
• Key money
  A non-refundable fee paid at the time of contract, usually around 1-2 months’ rent
• Brokerage fee
  Compensation to the real estate company (usually 1 month’s rent + consumption tax)
• Fire insurance
  Often mandatory

These costs may not be required in some cases, but they are often necessary in most rental contracts. It’s important to check the details in advance and prepare sufficient funds.

Renewal Fees and the Contract Renewal System

In Japanese rental contracts, renewal is generally required every two years.

At Renewal

• A renewal fee of about 0-1 month’s rent is typically charged
• There is also a possibility of rent revision, so caution is necessary
• Notifications are sent 1-2 months before the expiration date, and renewal procedures and necessary documents should be prepared at this time

The renewal system also differs depending on the contract type.

Regular lease contract
A common contract form where renewal fees occur

Fixed-term lease contract
Ends upon expiration of the contract period, and a new contract is required if continuing

5. Important Rules and Etiquette After Moving In

Living in rental properties in Japan involves unique rules and etiquette. These are based on cultural backgrounds and may often be new customs for foreign residents.

However, by understanding and practicing these rules and etiquette, you can build good relationships with neighboring residents and lead a comfortable life.

Basic Rules in Japanese Housing

It’s important to know the basic rules in Japanese rental properties. Consideration for others and following rules are essential.

Summary of Basic Rules

• Remove shoes at the entrance
  This is not just a habit but an important cultural custom to maintain cleanliness indoors
• Be mindful of noise late at night
  Especially after 10 PM, consideration for living sounds is necessary
• Proper garbage separation and adherence to collection days
  Since sorting methods and collection days vary by region, carefully check the guidance provided by the management company
• Use of common areas
  Follow the designated rules for elevators, garbage collection sites, bicycle parking, etc.
• Housing management
  Regular ventilation and cleaning, proper use and management of water facilities are necessary. Restrictions often apply to nailing walls or floors, and regulations regarding pet keeping should also be checked in advance

Methods of Communication with Neighboring Residents

In Japanese apartment buildings, building good relationships with neighboring residents is important. It is recommended to make greeting visits when moving in, focusing on the immediate neighboring rooms.

During such visits, make a brief self-introduction and request cooperation for future interactions, and don’t forget to greet the building manager if necessary.

For daily communication, it’s basic to never miss greetings in corridors and on stairs.

Also, since notifications from the management association often contain important information, it’s essential to develop a habit of checking them regularly.

6. Prevention and Resolution of Problems

In rental life, it may be difficult to completely avoid troubles.

However, by knowing appropriate preventive measures and coping methods, you can prevent many problems in advance and resolve them smoothly if they occur.

Especially for foreign residents, more careful responses are required because misunderstandings due to cultural differences and language barriers are more likely to occur.

Common Problems and Their Solutions

The most common troubles related to rental contracts are misunderstandings or differences in interpretation of contract terms.

It’s particularly important to understand even the fine details of the contract. Delays or forgetting renewal procedures can lead to automatic termination of the contract or additional costs, so make sure to record the renewal date.

Differences in perception regarding restoration to the original condition upon moving out are also frequent troubles. It’s important to record the condition of the room with photos at the time of moving in and to understand repair costs in advance.

By checking the procedures and costs for cancellation at the time of contract, you can avoid unexpected expenses.

Examples of Daily Life Troubles and Points to Note

• Particular attention should be paid to footsteps or furniture moving sounds late at night, and TV or stereo volume
• Violations of garbage disposal rules can also become serious problems, so thoroughly understand the garbage separation rules of each region and adhere to collection dates and times
• Misunderstandings about the use of shared facilities and problems related to the use of housing equipment are also common cases

To prevent the above troubles, it is recommended to carefully read the instruction manuals and usage regulations provided by the management company at the time of moving in, and to actively ask questions if anything is unclear.

Resources to Overcome Language Barriers

Various multilingual supports can be utilized to prevent misunderstandings or discrepancies due to language issues.

Many real estate companies offer interpretation services, which can be used during explanations of important contract details and negotiations.

Local administrative agencies also have consultation windows for foreigners, making it possible to consult about housing in your native language. Support from international exchange associations is also a valuable resource for obtaining various information and advice about living in the region.

Recently, the accuracy of multilingual apps and translation tools has improved, and they can be used as aids for daily communication.

Response Procedures When Troubles Occur

1. Consult with the management company or real estate company
2. Request interpretation services as needed to facilitate communication
3. If legal advice is needed, consider using legal consultation services for foreigners

By making efforts to keep records and evidence related to troubles, problems can be resolved smoothly. It’s particularly important to respond when problems are small.

Many cases of small misunderstandings or discrepancies can develop into major troubles if left unattended, so aim for early detection and response.

7. How to Utilize Support Systems for Foreigners

In recent years, with the increase of foreign residents, various support systems and consultation windows have been established. By appropriately utilizing these systems, you can lead a more secure rental life in Japan.

Support systems may vary by region, so it’s important to check the systems in your residential area.

Administrative Support Services

Support services for foreign residents provided by local governments have been enriching year by year.

Housing consultation windows now offer multilingual support, addressing a wide range of consultations from basic questions about rental contracts to complex procedures.

Particularly noteworthy is the interpreter dispatch service for rental contracts. This allows for a more accurate understanding of important explanations and contract details.

Many local governments also provide housing information in multiple languages, which can be utilized from the initial stages of property searching.

They also offer guidance on residential support systems and application support, and in some cases, you may be able to use support systems for those who need special consideration in securing housing.

Public Guarantee Systems

Local government rent debt guarantee systems may be more advantageous in terms of cost than using private guarantee companies. Also, public institution entry guarantee systems can be an effective option when it’s difficult to secure a guarantor. We also recommend actively utilizing housing support payment systems or housing assistance systems for international students if you meet the conditions.

Reference: Immigration Services Agency of Japan: Housing, Ministry of Health

List of Multilingual Consultation Windows

Consultation windows available to foreign residents can be used according to purpose and situation.

Reference: TIPS: List of International Exchange Associations (Tokyo), Ministry of Justice: FRESC, Ministry of Health, Labour and Welfare: List of Prefectures

8. Utilize Agencies and Support That Can Accommodate Foreigners for Rental Contracts in Japan

Rental contracts in Japan may seem complicated for foreigners, but they are not at all difficult with the right knowledge and proper preparation.

Various support systems and consultation windows have also been enhanced, and you can receive the necessary support.

Please refer to the content explained in this article to start your new life in Japan with peace of mind.