Finding housing in Tokyo can be a significant challenge for foreign engineers preparing to work at IT companies.
In particular, many struggle with Japan’s unique customs regarding rent prices, contract procedures, and language barriers.
This article provides a comprehensive guide to selecting rental properties for foreign engineers, focusing on areas where IT companies are concentrated.
1. Housing Cost Situation for Foreign IT Engineers in Tokyo
For foreign IT engineers working in Tokyo, establishing an appropriate housing budget is a crucial element of life planning.
Understanding the different rent prices by area and the distribution of IT companies will enable more efficient property hunting.
Appropriate Rent Based on Engineer’s Average Annual Income
For IT engineers working in Tokyo, appropriate housing costs are closely related to annual income.
Generally, it’s recommended to set a limit of approximately 30% of monthly take-home pay for rent.
In Tokyo’s IT industry, annual incomes typically range from 4.5 to 6.5 million yen, and it’s advisable to set rent based on this standard.
Specific examples of annual income and monthly rent
- Annual income of 4.5 million yen: Monthly rent of approximately 110,000 yen
- Annual income of 5.5 million yen: Monthly rent of approximately 135,000 yen
- Annual income of 6.5 million yen: Monthly rent of approximately 160,000 yen
However, this amount is merely an upper limit, and it’s worth considering a lower rent based on other living expenses and savings goals.
Living Environments by Area and IT Company Distribution
IT companies in Tokyo tend to be concentrated in specific areas, which also feature well-developed living environments.
Shibuya/Roppongi Area
Characterized by a concentration of global startups and an international atmosphere.
Shinagawa/Hamamatsucho Area
Lined with offices of major IT companies and featuring a well-developed business environment.
Shinjuku/Nakano Area
Offers relatively affordable rent while boasting excellent transportation access.
The above areas have established foreign communities and well-developed support systems for daily life.
It’s important to choose the optimal area for yourself while considering the balance between commuting time to your workplace and your budget.
2. Recommended Rental Areas and Rent Price Ranges
Tokyo’s major areas where IT companies are concentrated each have distinctive living environments and rent price ranges. Here’s a detailed explanation of recommended rental areas that consider the balance between work and life.
Shibuya/Roppongi Area Where Startups Gather
The Shibuya/Roppongi area is known as the center of an internationally diverse startup ecosystem. The average rent in Shibuya Ward is 146,000 yen for a studio apartment and 238,100 yen for a 1LDK (one bedroom with living-dining-kitchen).
The greatest feature of this area is its well-established foreign community. There are abundant restaurants and entertainment facilities, with many establishments offering English-language support.
Especially for young engineers working at IT companies, the environment is attractive for both work and private life. Access to office environments such as Shibuya Scramble Square and Roppongi Hills is also excellent.
Shinagawa/Hamamatsucho Area Where Major IT Companies Concentrate
The Shinagawa/Hamamatsucho area is a region where headquarters and development centers of major IT companies are concentrated.
The average rent in Minato Ward, where this area is located, is relatively high at 164,900 yen for a studio apartment and 280,000 yen for a 1LDK.
However, the quality of transportation access and living infrastructure is correspondingly high.
With Shinagawa Station, a Shinkansen stop, and good access to Haneda Airport, this is an ideal location for engineers who frequently travel domestically and internationally.
Cost-Effective Shinjuku/Nakano Area
The Shinjuku/Nakano area is characterized by good access to the city center and relatively affordable rent.
The average rent in Shinjuku Ward is 111,200 yen for a studio apartment and 209,800 yen for a 1LDK, which is slightly more affordable compared to Shibuya or Shinagawa.
This area already has many foreign residents, creating an environment of multicultural coexistence.
Supermarkets and restaurants are also plentiful, making daily life highly convenient. Multiple train lines are available, making it easy to access various parts of Tokyo.
This may be an ideal choice for engineers who want to live in central Tokyo while keeping their budget lower than in Minato or Shibuya Ward.
3. Basic Knowledge of Rental Contracts Foreign Engineers Should Check
Rental contracts in Japan have unique customs and procedures that can often be confusing for foreign engineers.
Here, we’ll explain in detail the knowledge needed for smooth contracting and items to prepare.
Preparing Residence Status and Necessary Documents
When entering a rental contract, you need to prepare several important documents.
For proving residence status
Passport and residence card (or certificate of eligibility) are essential
To prove stable income
Employment contract from your workplace, recent income verification (withholding tax slip or pay stub), certificate of employment, etc.
For those working at IT companies, especially engineers with highly-skilled professional visa status, there’s often a high level of trust from real estate companies, making it possible to proceed with contract procedures relatively smoothly.
Ensure these documents contain up-to-date information and, if necessary, prepare English versions as well.
Reference: Immigration Services Agency: “Highly-Skilled Professional”
Choosing Guarantors and Guarantee Companies
While most Japanese rental contracts require a guarantor, foreign residents typically use guarantee companies. When selecting a guarantee company, first confirm whether they offer multilingual support.
This is important not only for communication during the contract process but also for dealing with issues after moving in.
Guarantee fees are typically 50-100% of the monthly rent initially, and about 10% of the monthly rent annually for renewals.
The scope of guarantees also varies by company, so it’s recommended to check details including rent arrears, restoration costs, and emergency response.
Especially for foreign engineers working at IT companies, some companies offer specialized guarantee plans, so consider utilizing these.
Breakdown of Initial Costs and Tips for Saving
Initial costs for rental contracts typically amount to about 4-6 months’ worth of rent.
Main breakdown of initial costs
- Security deposit (1-2 months’ rent)
- Key money (0-2 months’ rent)
- Agent fee (1 month’s rent)
- Guarantee fee (50-100% of monthly rent), etc.
To reduce these costs, prioritize properties without key money, choose properties with lower security deposits, or aim for real estate company promotion periods.
Also, if you can use company housing systems or housing allowances, consider these to reduce your actual burden.
4. Finding Foreign-Friendly Properties in Areas with Many IT Companies
In areas where IT companies are concentrated, many properties cater to foreigners. Here’s a detailed explanation of tips for efficiently finding ideal properties and services you can utilize.
How to Choose Real Estate Agencies that Accommodate Foreigners
When selecting a real estate agency that accommodates foreigners, several important factors should be considered.
While having English-speaking staff is a basic requirement, what’s more important is extensive experience handling properties for foreigners.
Experienced real estate agencies typically have good relationships with property owners and can smoothly facilitate foreign residents’ move-ins.
The level of online services is also an important selection criterion. In particular, multilingual contract documents and online property introduction systems are significant advantages for busy IT engineers.
How to Find Properties with Online Viewing and Contract Options
Recently, properties offering online viewing and contracts have increased.
Platforms like Best-Estate (supporting 7 languages), GaijinPot Apartments (supporting English and Chinese), and Sakura House (many furnished properties) often allow you to complete everything from browsing property information to scheduling viewings and even contract procedures online.
These services provide detailed photos and videos of properties, 360-degree views, etc., allowing you to thoroughly check property conditions without physically visiting.
In many cases, you can also check the locations of nearby IT companies and commuting times, enabling efficient property searching.
Characteristics of Properties with English-Speaking Management Companies
Properties operated by management companies with English support typically share several common features.
Many have 24-hour English support desks, allowing you to handle sudden problems with peace of mind.
Signs in common areas and important notices are provided in multiple languages, creating an environment where residents not fluent in Japanese can live comfortably.
Various services for foreign residents are available, such as providing disaster information in English and hosting community events.
5. Techniques to Reduce Living Expenses After Signing a Rental Contract
Managing living expenses after signing a rental contract is an important element in long-term life planning. Here, we’ll explain efficient saving methods, focusing particularly on major expenditures like utility costs and commuting expenses.
How to Choose Energy-Efficient Properties to Reduce Utility Costs
Choosing a property with high energy efficiency greatly affects monthly utility bills.
When selecting a property, first focus on insulation performance. Double-glazed windows, insulation materials, and building structure significantly affect heating and cooling efficiency.
Air conditioner performance and age, as well as water heater type, are also important factors affecting utility costs.
Particularly in properties with the latest energy-saving equipment, you can expect to reduce utility costs by approximately 20-30% compared to conventional properties.
Window orientation and sunlight exposure are also important; south-facing properties may help reduce heating costs in winter.
Choosing Locations with Commuting Costs in Mind
Commuting costs to areas where IT companies are concentrated vary greatly depending on location choice.
Travel within Tokyo’s 23 wards typically costs around 10,000-15,000 yen monthly, but costs increase for commuting from suburban areas or using multiple lines.
However, even if commuting passes become more expensive by choosing suburban properties with cheaper rent, overall costs may be lower in some cases.
Also, with the prevalence of remote work today, depending on commuting frequency, it might be worth considering pay-as-you-go payments instead of commuter passes.
Pros and Cons of Furnished Properties with Appliances
Properties with furniture and appliances offer major benefits: reduced initial costs and moving hassle. This is particularly attractive for overseas assignments, as you can begin living immediately.
However, monthly rent tends to be 10-20% higher than for unfurnished properties.
The limited freedom in choosing furnishings and appliances, as well as potential restoration costs when moving out, are also listed as disadvantages.
However, for stays of approximately 2-3 years, considering the costs of purchasing and disposing of furniture and appliances, the overall benefits may be greater in many cases.
6. Understanding Tokyo’s Rental Situation and Housing Costs to Thrive as a Foreign Engineer
Finding rental properties in Tokyo is the first step in establishing an important living foundation for foreign engineers.
By understanding the characteristics of areas where IT companies are concentrated and choosing properties that match your budget and lifestyle, you can enjoy a more fulfilling life in Tokyo.
With language support becoming increasingly available, please use this article as a reference to find your ideal home.
