Your Ultimate Checklist for Securing a Rental Property in Japan

When looking for a new home in Japan, the rental contract process involves numerous procedures. If you are renting property in Japan for the first time, the entire process might feel complex. Therefore, we have compiled this checklist to help you navigate the smooth process of securing a rental contract in Japan. By referencing this list, you can clarify everything from searching for a property to signing the final agreement, allowing you to start your new life with peace of mind.

1. Preparation Before Searching for a Property

It is crucial to prepare several things before you even start your property search. Doing so will help you find properties that meet your needs efficiently.

Setting a Budget: Consider the monthly rent, common area fees (management fees), security deposit (shikikin), key money (reikin), and initial costs to set your budget. Generally, the rent should be about one-third of your monthly income.
Selecting a Desired Area: Narrow down the areas you want to live in by considering commuting/schooling time and local convenience (supermarkets, hospitals, transportation access, etc.).
Organizing Necessary Facilities and Conditions: Listing your desired property conditions—such as air conditioning, internet facilities, parking, or pet allowance—will make the search process smoother.

2. Documents and Information to Check Before Viewing

To proceed with a rental contract, you will need several documents and pieces of information. Preparing these in advance ensures the contract process moves smoothly.

Identification Documents: You will need items such as your passport, Residence Card (for foreigners), or driver’s license.
Proof of Income: Prepare documents that prove stable income, such as pay stubs, withholding tax slips, or final tax returns.
Confirming a Guarantor: Many rental contracts require a guarantor. If you do not have a personal guarantor, it is also possible to use a guarantee company.

3. Points to Check During Property Viewing

Viewing the property is one of the most critical steps in finding a home. When touring, make sure to check the following points.

Layout and Size: Check the actual size and room arrangement, which can be difficult to gauge from floor plans. It is helpful to visualize furniture placement and daily movement paths while viewing.
Sunlight and Ventilation: Confirm that the room receives adequate sunlight and has good ventilation. Sunlight hours affect indoor temperature and utility costs, making this a crucial check point.
Neighborhood Environment: The distance to supermarkets, hospitals, and stations, as well as the general safety of the surrounding area, are important factors. Taking a walk around the property in the evening or on a holiday can give you a different impression than during the day.
Condition of Equipment: Check if basic facilities such as air conditioners, water heaters, kitchen, bathroom, and toilet are operating normally. For older properties, concerns about equipment deterioration may arise.

4. Reviewing the Contract and Key Things to Note

Once you decide on a property, you move toward the contract stage. Since the contract contains important details, careful review is essential.

Confirming Rent and Common Fees: In addition to the rent, common area fees (management fees) are often charged separately. Also, confirm the payment method and due date for the rent.
Security Deposit (Shikikin) and Key Money (Reikin): Japanese rental contracts may require a security deposit (used for repair costs upon moving out) and key money (a thank you payment to the owner). Note that the key money is generally non-refundable.
Contract Term and Renewal Fee: The contract term is often two years, and a renewal fee may be charged upon extension. This fee is usually equivalent to one month’s rent.
Termination Conditions: When terminating the contract, you are usually required to give notice 1 to 2 months in advance. Be sure to confirm the procedures and conditions for vacating the property upon termination.

5. Using Insurance and Guarantee Companies

In Japan, it is often mandatory to purchase fire insurance for a rental contract, and using a guarantee company instead of a personal guarantor is increasingly common.

Fire Insurance: This insurance covers various troubles, not just fires, such as water leaks or theft. Since fire insurance is often required at the time of contract signing, be sure to check the scope of coverage.
Guarantee Company: Using a guarantee company provides assurance to the owner even if rent payments are delayed. When using such a service, there is an additional guarantee fee, so it is important to confirm this beforehand.

6. Notes and Procedures When Moving Out

When moving out, there are several procedures and points to note. It is especially important to understand the rules regarding the return of the deposit and restoration of the property.

Restoration (Genjo Kaikaku): Upon moving out, you are required to restore the room to its original condition. While normal wear and tear is generally not the tenant’s responsibility, stains or damage to wallpaper may be deducted from your deposit as repair costs.
Notice of Termination: If you plan to move out, you must inform the owner or real estate company according to the notice period specified in the contract (usually 1–2 months).

Summary: To Smoothly Proceed with a Rental Contract in Japan

The rental contract process in Japan has unique rules and procedures compared to other countries. By thoroughly understanding the preparation steps and confirmation items during contracting, you can avoid trouble and start your new life smoothly. Please use this checklist as a guide to confidently proceed with your home search and rental agreement in Japan.