Accommodation in Japan

Accommodation in Japan is expensive and follows a distinct trend: the larger the city, the fiercer the competition and the smaller the living quarters. Finding appropriate accommodation in Japan can therefore be a bit of a challenge for newly arrived expats.

Types of accommodation in Japan

Apartments are common in Japanese cities and are where the majority of expats living in Japan reside. Older buildings with small apartments are known as apato. The buildings are usually not higher than two storeys and are made of wood or light steel, so the walls tend to be thin.

Newer buildings with larger apartments are called manshon. These typically have more than two storeys and are made of more sturdy materials, such as concrete. These often come with amenities like security systems, elevators and car parking.

A popular option among single expats in Japan is shared accommodation in large houses. The setup at these houses varies from house to house. Usually, they are inhabited by young expats looking to save money over the course of a short-term stay or while searching for something more permanent. In some shared-housing setups, the rooms are flatlets with their own bathrooms, while in others, residents will have their own room but will share a kitchen, bathroom, and living areas with the other inhabitants.

Furnished or unfurnished

Most rental properties in Japan are unfurnished and typically rented without appliances, such as washing machines or refrigerators. Furnished accommodation tends to be more suitable for foreign residents, as it reduces the initial outlay and saves time. Furnished property is more expensive to rent, and there is limited availability.

Short lets and serviced apartments

Short-term lets are a good alternative for expats who are only in the country for a few months or who want to get to know an area before choosing something more permanent. Short-term rentals and serviced apartments are usually furnished down to linen and cutlery. Services such as cleaning and laundry are often included in the cost of the stay. There's a wide market catering to expats with options ranging from shared houses to high-end serviced apartments.

Useful links

• Airbnb
• Vrbo

Finding accommodation in Japan

Finding accommodation in Japan can be a challenge for expats. Japan is a small, densely populated country and the housing market is competitive. Expats should conduct thorough research before arriving in the country. Knowing which neighbourhoods or areas are appealing will make the search less overwhelming. You can use online property portals to get a sense of the housing market and establish a budget.

We recommend that expats looking for accommodation in Japan go through a real estate agent. Many landlords are reluctant to rent to foreigners, so it's best to go this route rather than attempting to rent directly from a landlord. Agents also have the advantage of understanding the local language and being familiar with the local areas.

There are some companies and services specialising in helping foreigners find rental housing in Japan. These services are generally English-friendly and could be particularly helpful for those with language barriers.

Available accommodation is also usually advertised in the local media. If viewing an apartment, it's a good idea to take a trusted friend or colleague along who can speak Japanese, as most landlords are unlikely to speak English.

Useful links

• GaijinPot Apartments
• Real Estate Japan

Renting accommodation in Japan

Most expats will research properties online and contact local estate agents in Japan to arrange viewings. Once a suitable property has been found and an agreement has been made with the landlord, the contract will be drawn up. 

To rent accommodation in Japan, expats will require a guarantor, typically an employer. This person needs to vouch for the expat and take liability for any outstanding rent or fees. If you don't have a guarantor, it's possible to hire one through an agency.

Leases

Most leases in Japan are for one or two years. Rental contracts are usually prepared in Japanese. Depending on the landlord, an English translation may be available. If not, expats should ask a Japanese friend or colleague to review the contract with them.

References

While not always mandatory, having references can greatly facilitate the rental process in Japan. This could be a reference from a previous landlord or an employer. It helps expats to reassure their potential new landlord that they are reliable and can maintain a rental property. A positive reference can sometimes make a difference in competitive housing markets like Tokyo or Osaka.

It's also worth noting that landlords may perform background checks, typically checking the prospective tenant's employment status, financial situation and sometimes even personal character. This helps them gauge the reliability of potential tenants and is a fairly standard procedure.

Deposits and costs

The upfront costs for renting in Japan are high. It's standard practice to pay a non-refundable real-estate agent fee equal to one month's rent. Although it's becoming less prevalent and not all landlords require it, expats may also be expected to provide the landlord with a gift referred to as reikin or key money. This is non-refundable and typically equivalent to one to two months' rent, although it can be up to six months.

A security deposit (shikikin) is the equivalent of two or three months' rent. Expats should look out for mention of a renewal fee (kōshinryō), which is typically equivalent to one month's rent and payable every one or two years if the contract is renewed.

Terminating the lease

Should the tenant wish to terminate their lease before the agreed end date, it's customary to provide at least one month's notice, though the exact notice period may vary depending on the contract. Early termination often incurs a penalty fee, which is typically equivalent to one or two months' rent. This can vary, and it's important to check the contract's terms.

Just as in other countries, it's critical for the tenant to put their notice in writing. Additionally, upon leaving, the property must be cleaned and returned to the condition it was in at the start of the lease, taking into account normal wear and tear.

Utilities in Japan

As tenants in Japan, expats will typically find themselves responsible for the cost of utilities. These include electricity, gas, water, and waste collection. The costs can vary greatly depending on location, type of accommodation, and personal consumption habits. However, there are instances where utilities might be included in the rental cost, so it's always worthwhile to check the rental contract for clarification.

Electricity

Electricity in Japan is supplied by regional monopolies, with Tokyo Electric Power Company (TEPCO) being the most well-known. To set up electricity, expats will need to get in contact with their local power company, whether online, in person, or by phone. 

Gas

Gas providers vary by region, with Tokyo Gas and Osaka Gas among the main providers. The gas supply in Japan primarily consists of either piped city gas or propane gas. Apartments will be fitted for one type, and this cannot be changed.

Water

Water services in Japan are usually handled by municipal governments. Expats can expect to receive a bill for their water usage every two months. Some apartments might include water costs within the rental fee, so you should be sure to clarify this with your landlord or rental agency.

Waste disposal

Waste disposal in Japan is heavily regulated and varies by city – and even by ward within a city. Waste is typically separated into burnable, non-burnable and recyclable items. Each category has a specific collection day, and it's important to follow these guidelines to avoid penalties. Large items often require a disposal fee and a special collection arrangement.

Internet and telephone

Internet and phone services are additional utilities to consider, with many providers available. Providers like NTT Docomo, KDDI and SoftBank offer a range of packages to cater for individual needs. 

For more about internet and phone services, read Keeping in Touch in Japan.