Arranging accommodation for employees is a crucial task in the process of overseas business expansion. Japan, as a major economic power in Asia, has attracted numerous companies looking to explore new markets. However, Japan’s rental market has its unique characteristics, with processes and systems that differ from other countries. This article provides overseas companies with a comprehensive guide to renting in Japan, covering the rental process, required documents, rent composition, and Japan-specific rental systems, helping businesses and employees better navigate the challenges of renting in Japan.

Overview of the Japanese Rental Market

1.1 Scale of the Rental Market

Japan’s rental housing market is large and stable. According to the latest data from the Statistics Bureau of Japan in 2023, approximately 53.1% of households in Japan live in rental housing, with this percentage reaching about 62% in major cities like Tokyo. As of the end of 2023, there were about 29.2 million rental housing units nationwide, of which about 16.8 million were private rental housing and 12.4 million were public rental housing. This vast market provides ample choices for overseas companies, but it also means that more careful screening of suitable properties is necessary.

1.2 Rent Levels

Rent levels in Japan vary significantly by region, with notable differences between cities. Taking 2023 data as an example, the average monthly rent in Tokyo’s 23 wards was about 118,000 yen, an increase of about 4.4% compared to 2022. In the surrounding prefectures of Saitama, Chiba, and Kanagawa, the average monthly rents were 75,000, 78,000, and 93,000 yen, respectively. In contrast, rent levels in other parts of Japan are much lower, with average monthly rents of about 81,000 yen in Osaka Prefecture and 65,000 yen in Fukuoka Prefecture. For overseas companies, understanding rent levels in different regions helps with better budget planning and cost control.

1.3 Housing Type Distribution

Japan offers a diverse range of rental housing types, including studio apartments, one-bedroom apartments, two-bedroom apartments, and more. According to 2023 statistics from Japan’s Ministry of Land, Infrastructure, Transport and Tourism, studio apartments and one-bedroom apartments account for the highest proportion of private rental housing at about 58%, two-bedroom apartments account for about 25%, and three-bedroom and larger apartments account for about 17%. For overseas companies, different types of housing can be chosen based on employees’ varying needs and budgets. For instance, single employees might opt for studio or one-bedroom apartments, while employees with families may require two-bedroom or larger apartments.

1.4 Rental Market Trends

In recent years, several distinct trends have emerged in the Japanese rental market. Firstly, influenced by the COVID-19 pandemic, remote work has become the norm, leading more people to choose to rent in areas outside city centers to obtain larger living spaces at lower rents. Secondly, there is an increasing demand for eco-friendly and energy-efficient housing, with many landlords beginning to implement energy-saving renovations to attract more tenants. Lastly, smart home devices are becoming increasingly prevalent in the rental market, such as smart locks and smart temperature control systems. These trends provide new considerations for overseas companies when choosing employee accommodations.

The Rental Process in Japan

2.1 Determining Budget and Requirements

Before beginning the rental process, it’s crucial to determine the budget and specific requirements. This step is vital for both individuals and companies, especially for overseas businesses that need to consider multiple factors comprehensively. According to the latest data, rent levels in major Japanese cities continue to rise, particularly in metropolitan areas such as Tokyo, Osaka, and Nagoya. For example, in Tokyo’s 23 wards, the average monthly rent for a one-bedroom apartment has reached 92,000 yen, an increase of about 5% compared to the previous year. The rent for two-bedroom apartments has risen to an average of 155,000 yen, an increase of nearly 7%. Although rent levels in Osaka and Nagoya are relatively lower, they also show an upward trend, with average monthly rents for one-bedroom apartments at 71,000 yen and 65,000 yen, respectively.

When setting a budget, in addition to monthly rent, initial costs should also be taken into consideration. Initial costs typically include deposit, key money, agency fees, fire insurance, etc. According to the latest statistics, initial costs average about 3-6 months’ worth of rent. For example, to rent a one-bedroom apartment in Tokyo with a monthly rent of 92,000 yen, one might need to prepare 276,000 to 552,000 yen in initial funds. Furthermore, some landlords or agencies may require additional fees such as cleaning fees and key exchange fees, which usually amount to about 30,000 to 50,000 yen.

Daily living expenses are also an important aspect to consider. The latest data shows that the average monthly living expenses (excluding rent) for a single person living in Tokyo are about 170,000 yen, including food, transportation, utilities, communication, entertainment, and other expenses. Considering these factors, it is recommended to set the total budget at 1.5 to 2 times the monthly rent to ensure sufficient funds for various expenses.

In terms of determining requirements, the first consideration is the apartment type and size. Japanese apartments are typically labeled as “1R”, “1K”, “1DK”, “2LDK”, etc. Here, “R” stands for room, “K” for kitchen, “D” for dining area, and “L” for living room. According to the latest survey, the average size of a one-bedroom apartment in Tokyo’s 23 wards is 25.8 square meters, while a two-bedroom apartment averages 43.6 square meters. Choosing the right apartment type and size not only affects living comfort but also directly impacts the rent level.

Location and commute time are other important factors to consider. According to the latest commute time survey, the average one-way commute time for office workers in Tokyo’s 23 wards is 48 minutes, 44 minutes in Osaka City, and 39 minutes in Nagoya City. To balance rental costs and quality of life, many people choose to live in areas with a commute time of 30-60 minutes. For overseas companies, it’s also necessary to consider employees’ cultural backgrounds and living habits. For example, some employees may prefer quiet residential areas, while others might prefer bustling commercial districts. Additionally, factors such as proximity to international schools and expatriate communities should also be taken into account.

2.2 Finding Properties

There are several main ways to find properties in Japan, each with its own characteristics and advantages. Real estate agencies are the most common and recommended method. Japan has many professional real estate agencies, such as ABLE, MINI MINI, CHINTAI, etc., who are familiar with the local market and can provide rich property information and professional advice. According to the latest data, about 70% of rental transactions are completed through real estate agencies. These agencies usually charge a service fee equivalent to one month’s rent, but they provide services including property recommendations, accompanying viewings, assistance with applications, contract translation, etc., which is particularly helpful for foreigners unfamiliar with Japan’s rental process.

Online property websites are another important channel for finding properties. There are several dedicated rental websites such as SUUMO, HOME’S, at home, etc., where you can get preliminary information about available properties. These websites usually provide detailed property information, including location, apartment type, size, rent, surrounding facilities, etc., and some websites even offer virtual viewing services. According to statistics, about 50% of renters use these websites for initial property screening. However, it should be noted that the information displayed online may not be completely accurate or up-to-date, so it is still recommended to confirm through a real estate agency.

Newspaper and magazine advertisements, although not as prevalent in the digital age as before, still have some properties advertised through this traditional method. Especially some free magazines targeting foreigners, such as Metropolis and Tokyo Notice Board, often publish property information for foreigners. These properties may be more suitable for short-term rentals or tenants with lower Japanese language requirements. However, the number of properties found through this method is limited, and the information update frequency is relatively low.

Directly contacting landlords is a less common method, mainly applicable to some small apartments or personally rented properties. This method may save agency fees, but it also means a lack of professional services and guarantees. According to the latest survey, only about 5% of rental transactions are completed through direct contact with landlords. For foreigners unfamiliar with Japanese laws and rental conventions, negotiating directly with landlords may face language barriers and legal risks.

For overseas companies, it is recommended to prioritize cooperation with reputable real estate agencies, which can reduce language communication barriers and provide more professional services. Some large agencies such as ABLE and MINI MINI have special service windows for foreigners, providing multilingual support. In addition, some real estate companies specializing in corporate clients, such as Sumitomo Real Estate and Mitsubishi Estate, can provide more comprehensive property and services for overseas companies.

When selecting properties, it’s also necessary to pay attention to some Japan-specific rental conditions. For example, many properties will be marked with information such as “no key money”, “pets allowed”, “furniture purchase allowed”, etc. “No key money” means that tenants do not need to pay the customary key money equivalent to 1-2 months’ rent, which can greatly reduce initial costs. Properties that allow pets usually have slightly higher rents, but are necessary choices for tenants with pets. “Furniture purchase allowed” means that the landlord allows tenants to add their own furniture, which is convenient for tenants planning to stay long-term.

2.3 Property Viewing

After selecting desirable properties, the next step is to view them in person. In Japan, it’s usually necessary to make an appointment with the real estate agency in advance for property viewing. According to the latest survey, on average, each renter views 3-5 properties before making a final decision. When viewing properties, attention should be paid to the following points, as these details directly relate to future living experience and potential additional expenses.

First is the condition of the property. Check the overall condition of the property, including whether there are signs of damage or moisture on the walls, floors, and ceilings. Japanese buildings often use wooden structures, so it’s particularly important to check for signs of termite infestation. According to the latest data, about 15% of tenants discover various degrees of problems after moving in, with moisture and mold being the most common issues, accounting for 40% of complaints. Therefore, carefully checking the property condition can avoid many future troubles.

Next is the equipment configuration. Confirm whether the basic equipment such as air conditioning, water heaters, kitchen facilities, etc., are complete and functioning properly. Japanese apartments usually don’t come with furniture and appliances, but air conditioning and water heaters are typically standard. According to the latest survey, about 30% of tenants need to purchase additional appliances after moving in, with an average expenditure of 100,000 to 150,000 yen. Therefore, confirming the equipment configuration during the viewing can help more accurately estimate the actual living costs.

Lighting and ventilation are also important points to examine. Check whether the room has sufficient natural light and whether the windows can be opened normally. Japanese building regulations have strict requirements for lighting and ventilation, but actual conditions may vary depending on the floor and orientation. According to statistics, rooms with ample natural light and good ventilation usually have rents 5-10% higher than similar properties.

Noise level is another factor that cannot be ignored. Pay attention to the noise level of the surrounding environment, especially for properties near roads or railways. According to the latest residential satisfaction survey, noise issues are the second most common complaint from tenants, second only to issues with the property itself. It’s recommended to view the property at different times to get a comprehensive understanding of the noise situation.

The surrounding environment directly affects the convenience of daily life. Understand the convenience of surrounding living facilities such as supermarkets, hospitals, public transportation, etc. According to the latest survey, 85% of tenants consider the convenience of the surrounding environment an important factor in choosing a property. Especially for foreigners, factors such as whether there are medical institutions providing foreign language services and whether there are international supermarkets are important considerations.

Finally, internet conditions are increasingly important for modern life, especially for employees who need to work remotely. According to the latest data, the average household broadband speed in Japan has reached 154Mbps, but about 10% of properties still have poor network coverage. It’s advisable to inquire about specific internet service providers and available packages during the viewing, and conduct speed tests if necessary.

2.4 Applying for Rental

After selecting a property, you need to submit a rental application to the landlord or management company. This process usually involves filling out an application form, providing personal information, work information, proof of income, etc. For employees of overseas companies, proof of residency status in Japan may also be required. According to the latest statistics, the rental application approval rate for foreigners is about 70%, lower than the 85% for Japanese locals. This is mainly due to communication problems caused by language barriers and cultural differences, as well as some landlords’ concerns about foreign tenants.

The application form usually requires detailed personal information, including name, age, occupation, monthly income, etc. For work information, you need to provide company name, position, years of service, etc. Proof of income usually requires the last three months’ pay slips or bank statements. For foreigners who have just arrived in Japan, additional guarantees may be required. According to the latest regulations, many landlords require foreign tenants to provide a joint guarantor or use an institutional guarantee service. Institutional guarantee services usually charge a fee equivalent to 0.5-1 month’s rent, but can greatly increase the chances of application approval.

For employees of overseas companies, in addition to the above materials, proof of residency status in Japan is also required. Usually, a copy of the residence card is needed, and if it’s a work visa, a copy of the employment contract may also be required. Some landlords may require proof of Japanese language proficiency or designate a Japanese-speaking contact person.

After submitting the application, the landlord or management company will usually conduct a credit check and background check. This process may take 3-5 working days. If the application is rejected, the landlord usually won’t provide specific reasons. Therefore, it’s recommended to apply for multiple properties simultaneously to increase the success rate.

2.5 Contract Signing

If the application is approved, the next step is to sign the lease agreement. Japanese rental contracts typically include the following contents, with each section having its own specifics and points to note. The lease term is usually two years, which is called a “standard lease contract”. However, there are also one-year or shorter-term contracts, called “fixed-term lease contracts”. According to the latest data, about 75% of lease contracts are two-year standard lease contracts. Standard lease contracts are automatically renewed upon expiration if both parties have no objections. Fixed-term lease contracts, on the other hand, require signing a new contract upon expiration.

The rent amount and payment method are the core contents of the contract. It is usually required to pay the next month’s rent in advance each month. According to the latest survey, about 95% of landlords require rent payment via bank transfer. It should be noted that Japanese rent usually does not include utilities such as water, electricity, and gas; tenants need to apply for these services and pay for them separately.

Security deposit and key money are unique systems in Japan. The security deposit is typically 1-3 months’ rent, which is returned at the end of the tenancy after deducting cleaning fees and damage compensation. Key money is a kind of “gratitude” given to the landlord, usually 1-2 months’ rent, and is non-refundable. According to the latest trends, more and more properties are starting to offer “no key money” policies, especially in competitive areas of big cities.

The house usage rules specify the rights and obligations of tenants in detail. Common rules include whether pets are allowed, interior renovations, subletting, etc. According to the latest data, about 40% of properties allow pets, but may charge additional cleaning fees or increase the security deposit. For interior renovations, most contracts require written permission from the landlord before making any changes.

Termination conditions include the notice period for early termination and penalties. Tenants are usually required to notify the landlord 1-2 months before moving out. If not notified on time, corresponding penalties may need to be paid. According to the latest statistics, about 60% of contracts stipulate a 1-month notice period, 30% stipulate 2 months, and the remaining 10% depend on specific circumstances.

Renewal fee is a fee that needs to be paid when renewing the contract after it expires. It is usually around one month’s rent. However, in recent years, more and more landlords have started to cancel renewal fees to attract long-term tenants. According to the latest data, about 55% of contracts still require renewal fees.

For companies expanding overseas, it is recommended to hire professionals familiar with Japanese law to assist in reviewing the contract to ensure all terms are clear and avoid possible disputes in the future. Special attention should be paid to some special clauses, such as the calculation method of compensation for early termination and the division of responsibility for house repairs. In addition, many real estate agencies now provide multilingual versions of contracts, which is a great help for foreign tenants who are not familiar with Japanese. However, it should be noted that in legal disputes, the Japanese version of the contract has the final interpretation rights.

Documents Required for Renting in Japan

3.1 Identification Documents

A passport is the most basic and indispensable identification document when renting. It not only proves the nationality of the renter but also contains important personal information. According to the latest statistics, Japan received about 3.22 million foreign visitors in 2023, a considerable portion of whom chose to rent in Japan for short or long terms. Therefore, the importance of passports as the main identification document is self-evident.

The residence card (zairyu card) is a necessary identification document for foreigners staying in Japan for more than 3 months. As of March 2024, the number of foreign residents in Japan has exceeded 3 million, an increase of about 5% from the previous year. This means that more and more foreigners need to obtain a residence card. The residence card is not only an ID but also contains important information such as the status and duration of stay in Japan, and is one of the key documents that landlords focus on when renting.

The resident card is an important certificate obtained after completing resident registration. The latest data shows that about 95% of foreigners in Japan completed resident registration in 2023. The resident card not only proves the renter’s residential address but also reflects the renter’s stability in Japan, which has a positive impact on successfully renting a property.

3.2 Income Proof Documents

Pay slips are usually required for the last 3-6 months. According to the latest report from the Ministry of Health, Labour and Welfare of Japan, the average monthly salary of full-time employees in Japan was about 307,000 yen in 2023. Landlords usually require that the rent does not exceed 30% of the monthly income, so pay slips directly affect the range of properties that renters can choose from.

Income tax certificates can be obtained from local city/ward offices. The latest data shows that the average income tax rate in Japan was about 20% in 2023. This document not only proves the renter’s income status but also reflects their tax payment situation, which is an important basis for landlords to assess the renter’s economic ability and sense of social responsibility.

Employment certificates are issued by employers and include information such as employment duration, position, and salary. According to statistics from the Ministry of Internal Affairs and Communications of Japan, the employment rate in Japan reached 60.8% in 2023, hitting a new high in recent years. Stable employment is considered a guarantee for timely rent payment, so employment certificates play a crucial role in the rental process.

3.3 Guarantor-related Documents

Renting in Japan usually requires a guarantor. If the tenant is an employee dispatched by a company, the company usually acts as the guarantor. Documents that need to be provided include company registration certificate, company financial statements, and identification of the company representative. According to data from the Ministry of Justice of Japan, the number of foreign companies registered in Japan increased by 7% in 2023, reaching about 35,000. This means that more and more foreign companies can serve as

Rent Composition and Unique Systems in Japan

4.1 Rent Composition

The composition of rent in Japan is relatively complex, including multiple additional fees besides the basic monthly rent. The main rent composition items are as follows:

Monthly rent is the most basic fee, usually paid monthly. According to the latest statistics, the average monthly rent in central Tokyo is about 100,000 yen, about 80,000 yen in Yokohama, and about 70,000 yen in Osaka. However, actual rents may vary depending on location, property type, size, and other factors.

Common area maintenance fee is similar to property management fee, used to pay for the maintenance and management costs of public areas. Generally, the common area maintenance fee is about 10% to 15% of the monthly rent. In Tokyo, the average common area maintenance fee is about 12% of the monthly rent, which is about 12,000 yen.

The payment method for utilities (water, electricity, and gas) varies depending on the property. Some properties include these costs in the rent, while others require tenants to pay separately. According to the survey, about 60% of rental properties require tenants to pay utilities separately.

Internet fees may be included in the rent in some apartments. However, it is more common for tenants to apply for internet services themselves. The monthly fees of major internet providers in Japan range from 3,000 to 5,000 yen.

Parking fees usually need to be paid separately. In central Tokyo, the monthly rent for a parking space can be as high as 20,000 to 30,000 yen. In other cities, the price is relatively lower, about 10,000 to 15,000 yen.

4.2 Security Deposit System

The security deposit is an important feature of the Japanese rental market. The amount of the security deposit is usually equivalent to 1 to 3 months’ rent, which is returned at the end of the lease. However, landlords have the right to deduct cleaning fees, repair costs, and other expenses from the security deposit. The latest data shows that the average security deposit amount in the Tokyo area is about 1.8 months’ rent, slightly higher than in previous years. The security deposit in other major cities such as Osaka and Nagoya is relatively lower, averaging about 1.5 months’ rent.

It is worth noting that the actual returned security deposit amount is often less than the original amount. According to the survey, on average, tenants can eventually recover about 70% to 80% of the security deposit. This is mainly due to landlords deducting cleaning fees, minor repair costs, and other expenses.

4.3 Key Money System

Key money is one of the unique rental systems in Japan, essentially a “gratitude” paid to the landlord. Key money is usually equivalent to 1 to 2 months’ rent and is non-refundable. Although some properties have started to cancel key money in recent years, it is still common in many areas, especially in big cities. The latest survey data shows that about 65% of properties in the Tokyo area still require key money, which has decreased compared to previous years but is still quite common.

In other major cities, such as Osaka and Fukuoka, the prevalence of the key money system is relatively lower, with about 50% to 60% of properties requiring key money. Some apartments targeting young people or foreigners have started to offer no key money promotions to increase attractiveness.

4.4 Renewal Fee System

The renewal fee is another unique rental system in Japan. When the lease expires and needs to be renewed, a renewal fee is usually required, generally amounting to one month’s rent. The legality of renewal fees was once questioned, but a 2011 Japanese Supreme Court ruling confirmed the legal status of renewal fees. However, in recent years, to attract tenants, more and more landlords have started to offer properties without renewal fees.

The latest data shows that about 45% of properties in the Tokyo area do not charge renewal fees, a percentage that has increased compared to previous years. In other regions, such as Osaka and Nagoya, the proportion of properties without renewal fees is even higher, reaching about 55%. This reflects that the Japanese rental market is gradually developing in a more tenant-friendly direction.

4.5 Agency Fees

When renting through a real estate agency, agency fees are usually required. The legal upper limit for agency fees is one month’s rent, but many agencies charge this maximum amount. Some properties may offer agency fee exemptions, but this is relatively rare.

According to the latest survey, about 85% of properties in the Tokyo area require full agency fees, which is one month’s rent. In other regions, such as Osaka and Fukuoka, this percentage is slightly lower, about 75% to 80%. Some large real estate agencies have started to offer discounted agency fees of half a month’s rent to attract more clients.

4.6 Fire Insurance

Many landlords require tenants to purchase fire insurance. This insurance not only covers fire damage but may also include risks such as water damage and theft. The insurance cost is usually not high, about 10,000 to 20,000 yen per year.

The latest data shows that about 95% of landlords require tenants to purchase fire insurance. Some real estate agencies offer their own insurance products, but tenants can also choose products from other insurance companies. It is worth noting that some comprehensive insurance products also include third-party liability coverage, which may be more protective for tenants.

4.7 Guarantor Company Fees

Since many foreigners find it difficult to find suitable personal guarantors, they usually use the services of guarantor companies. The fees for guarantor companies are typically half a month to one month’s rent, and some may require annual renewal.

The latest statistics show that about 80% of foreign tenants use guarantor company services. The initial fee for guarantor companies averages 0.8 months’ rent, while the annual renewal fee is about 10% of the monthly rent. Some real estate agencies specializing in services for foreigners offer more favorable guarantor company fees, with some even including them in the overall service package.

In general, the rent composition and unique systems in Japan reflect the uniqueness of its rental market. Although these systems may seem complex and expensive to tenants, the market has been gradually moving towards a more transparent and tenant-friendly direction in recent years. Tenants should fully understand these systems before signing a contract to make informed decisions.

Special Considerations for Renting in Japan

5.1 Method of Calculating Floor Space

Japan’s method of calculating floor space is unique, usually using “tsubo” as the unit, with 1 tsubo equaling approximately 3.3 square meters. This measurement method originates from traditional architectural culture and is still widely used in the real estate market. It’s worth noting that there is a distinction between “total floor area” and “usable floor area” in Japanese floor space calculations. The area advertised is usually the total floor area, which includes the thickness of the walls, so the actual usable area will be smaller.

According to the latest survey data, the difference between total floor area and usable floor area averages about 10% to 15%. For example, an apartment advertised as 25 square meters may only have an actual usable area of about 21 to 22 square meters. In major cities like Tokyo, this difference may be even more pronounced, in some extreme cases reaching up to 20%. Therefore, when choosing a property, it is advisable to carefully inquire about the actual usable area to avoid discrepancies in spatial perception.

Furthermore, in recent years, some real estate developers and agencies have begun to indicate both total floor area and usable floor area in advertisements to improve information transparency. According to statistics, currently about 30% of rental advertisements adopt this dual labeling method, a percentage that has steadily increased over the past five years.

5.2 Room Type Notation

Japan’s room type notation is also unique, with common types including:

1R: One room plus kitchen area. This is the most basic layout, usually ranging from 13 to 20 square meters, suitable for single occupants. According to the latest data, in central Tokyo, the average monthly rent for a 1R layout is about 80,000 yen.

1K: One room plus separate kitchen. Compared to 1R, 1K has a separate kitchen, which is more convenient to use. The area is usually between 20 to 30 square meters. In Osaka city, the average monthly rent for a 1K layout is about 60,000 yen.

1DK: One room plus dining kitchen. DK stands for Dining Kitchen, this layout is more spacious than 1K, usually ranging from 25 to 35 square meters. In Nagoya city, the average monthly rent for a 1DK layout is about 65,000 yen.

1LDK: One separate bedroom plus living room, dining room, and kitchen. L stands for Living room, this layout is suitable for small families or tenants who prefer a sense of space. The area is usually between 35 to 50 square meters. In Yokohama city, the average monthly rent for a 1LDK layout is about 100,000 yen.

2LDK: Two separate bedrooms plus living room, dining room, and kitchen. This layout is suitable for small families, usually ranging from 50 to 70 square meters. In Fukuoka city, the average monthly rent for a 2LDK layout is about 90,000 yen.

Understanding these notations helps in more accurately selecting suitable room types. It’s worth noting that in recent years, some new room type concepts have emerged in the Japanese real estate market, such as “1R+S” (one room plus storage space) or “1.5LDK” (a layout between 1LDK and 2LDK). These new types of layouts are designed to meet diverse living needs and are quite popular among young tenants.

5.3 Living Rules

Rental contracts in Japan typically have strict living rules that require special attention:

Noise Control: Japan is very sensitive to noise, especially at night. Most apartments have strict quiet time regulations, usually from 10 PM to 7 AM. According to the latest survey, noise complaints are the most common issue in Japanese rental disputes, accounting for about 40% of total complaints. Some apartments even install noise monitoring devices, and repeated violations may lead to lease termination.

Garbage Sorting: Japan’s garbage sorting is very detailed and must be strictly followed. Different areas may have different sorting standards, but they are typically divided into combustible, non-combustible, recyclable, and oversized garbage. Incorrect sorting may result in garbage not being collected, and severe violations may even incur fines. Statistics show that about 25% of foreign tenants encounter garbage sorting issues in the initial period.

Interior Renovations: Most rental contracts prohibit large-scale interior renovations. Even small changes, such as hammering nails or applying wallpaper, may require prior permission from the landlord. According to surveys, about 80% of rental contracts explicitly prohibit unauthorized renovations.

Visitor Restrictions: Some apartments may limit frequent visitors or prohibit overnight guests. This is mainly to maintain peace and safety for other residents. According to the latest data, about 30% of rental contracts include some form of visitor restriction clause.

Pet Restrictions: Many properties prohibit keeping pets or require additional pet deposits. Statistics show that in Tokyo, only about 20% of rental properties allow pets. Even if pets are allowed, there are usually restrictions on size and breed, and an additional pet deposit may be required, averaging about one month’s rent.

5.4 Move-out Process

There are also some special considerations when moving out:

Advance Notice: Usually, 1-2 months’ notice to the landlord or management company is required. Most rental contracts require at least one month’s notice, but some may require longer. According to the latest survey, about 95% of rental contracts clearly specify the move-out notice period.

Restoration: The property needs to be restored to its original condition at move-in, which may include professional cleaning and minor repairs. The standards for restoration may vary depending on the landlord but usually include cleaning, repairing minor damages, and replacing damaged equipment. On average, restoration costs are about 50% to 100% of one month’s rent. Some landlords may require tenants to use designated cleaning companies, which could increase costs.

Deposit Refund: The refund of the deposit is usually completed within 1-2 months after moving out, and the landlord has the right to deduct relevant fees. According to the latest data, on average, tenants can recover about 70% to 80% of their deposit. The main reasons for deposit deductions include cleaning fees, repair costs, and unpaid utilities. It’s worth noting that some areas have begun to implement deposit protection systems, requiring landlords to deposit the security deposit into specific accounts to protect tenants’ rights.

5.5 Language Barriers

Despite Japan’s increasing internationalization, language barriers may still be encountered during the rental process. Many landlords and agents may not speak foreign languages, and contracts and other documents may only be available in Japanese. Therefore, it is recommended that overseas companies consider the following measures:

Hire Japanese-speaking employees or translators to assist with the rental process. According to surveys, about 80% of foreign companies choose this method when renting in Japan. This not only helps overcome language barriers but also leads to better understanding and negotiation of contract terms.

Use real estate agencies that specialize in serving foreigners. In recent years, real estate agency services for foreigners have rapidly developed in major Japanese cities. These agencies usually offer multilingual services and are familiar with the special issues that foreigners may encounter when renting. According to statistics, there are currently about 200 real estate agencies in Tokyo that specialize in serving foreigners.

Consider choosing serviced apartments targeted at foreigners. These apartments usually offer English services, and contracts are also available in English versions, which can greatly reduce language barriers. According to the latest data, the number of serviced apartments for foreigners in Tokyo has increased by about 30% over the past five years.

5.6 Discrimination Issues

Although Japanese law prohibits housing discrimination based on nationality, in practice, foreigners may still encounter some difficulties. Some landlords may be reluctant to rent to foreigners due to concerns about language communication problems, cultural differences, etc. In response to this, overseas companies can consider the following strategies:

Choose to rent in areas with a high degree of internationalization. For example, areas like Shinjuku and Minato-ku in Tokyo are relatively easy for foreigners to rent. According to statistics, about 70% of the properties in these areas are open to renting to foreigners.

Renting under the company’s name may increase the success rate. Many landlords trust tenants with stable jobs more, and company guarantees can increase credibility. According to surveys, the success rate of renting under a company name is about 30% higher than under an individual name.

Provide detailed company background and employee information to increase the landlord’s trust. Information including company size, years of operation, and employees’ expected length of stay in Japan all help increase the landlord’s confidence.

Consider using real estate agencies or rental companies that specialize in serving foreigners. These institutions usually have established good relationships with multiple landlords and can provide more suitable housing options for foreigners. According to statistics, through these specialized agencies, the success rate of foreigners renting housing can increase to over 85%.

Conclusion

The Japanese rental market has its unique characteristics and complexities, which may pose many challenges for overseas companies and employees. However, by fully understanding Japan’s rental process, required documents, rent composition, and unique rental systems, companies can better arrange accommodation for employees and reduce unnecessary troubles and extra expenses.

During the rental process, it is recommended that companies designate specific personnel to coordinate and consider hiring professionals familiar with the Japanese rental market to provide assistance. At the same time, it’s important to respect Japanese cultural habits and lifestyle, and comply with various regulations. This not only helps in successfully renting suitable accommodation but also helps employees better integrate into Japanese society, creating a good foundation for the company’s overseas development.

As Japanese society continues to internationalize, the rental market is also gradually adjusting to meet the needs of foreign tenants. Some emerging rental models, such as shared housing and serviced apartments, provide more options for foreigners. When arranging accommodation for employees, companies can also consider these new types of accommodation to meet the diverse needs of different employees.

Overall, although the rental process in Japan may seem complicated, with adequate preparation and planning, it is possible to smoothly complete the rental process, provide comfortable living environments for employees, and thus support the long-term development of the company in the Japanese market.