Accommodation in Japan
There are many misconceptions about finding accommodation in Japan that might scare expats. It might seem complicated, with expensive and rare accommodation, the obligation to have a guarantor and unforeseen fees by the contract, etc. However, the reality is not so dark. Here are some tips for planning your move to Japan and securing accommodation.
What should you keep in mind when choosing your accommodation?
With Houses, apartments, flat sharing, sharehouses, youth hostels, bed and breakfasts, hotels, ryokan (traditional inn), looking for accommodation in Japan can indeed quickly turn into a headache. If you speak little or no Japanese, the language barrier can add extra stress. But don't panic. Before surfing the various housing rental websites, you are advised to clearly define your expectations according to your situation.
Purpose of your trip
Why are you in Japan? Are you on a tourist trip or are you coming for business? Which visa do you hold? Is it a tourist visa, a student visa, a work visa, or a Working Holiday Visa (WHV) for Japan? The reason for your stay will largely influence your choice of accommodation.
The duration of your stay
If you have secured a job in Japan, you may have a work visa of one year or more. The same applies if you are a student (one year renewable). The Japanese Working Holiday Visa (WHV) is valid for one year and is not renewable. Short visas for tourists and business are, as their name indicates, reserved for short stays, generally less than 90 days. Long stays mean a larger budget. On the other hand, short-stay travelers can, depending on their budget, opt for high-end accommodation, or not.
Are you traveling solo, with friends or family?
A solo expatriate will perhaps have fewer constraints and fewer requirements in terms of accommodation. A single room may suffice. Going with a family requires more organization. There is the choice of neighborhood, housing, number of rooms to live in, and proximity to schools, shops, and transportation. Of course, the same questions are just as important for the solo traveler and apply to friends who decide to move in together. Will personalities adapt to the new life in Japan? A group of friends does not necessarily mean sharing a flat. The same goes for the solo traveler, who will not necessarily go for shared houses, hostels, etc. They may be looking for more privacy and will opt for a studio or an apartment.
The host city
The choice of city can weigh heavily on your housing budget. Tokyo, the capital city, is more expensive than Fukui, Fukuoka, or Okayama. Even more than the city, the district where you live plays an important role in your budget. Renting an apartment in the center of Shinjuku or on the outskirts of the border with Saitama can make the rent go from simple to double. The same calculation applies to the capitals of popular prefectures such as Osaka, Fukuoka, or Kyoto. Rents will be cheaper in small towns and the Japanese countryside, but that option may not be suitable for everyone.
Starting budget
How much money do you have for your accommodation in Japan? In fact, prices will vary depending on the neighborhood, the type of property, its size, its condition (new/old furnished or not, additional services), and agency fees. In Tokyo, for example, a one-room apartment of about 15 to 20m² can be rented at 50,000 to 80,000 yen, on average. Moreover, the same apartment in Sapporo (Hokkaido Island, in the North of Japan), Niigata (a coastal city in the North of Honshu, the main island), or Kagoshima (a city in the South of Kyushu) will have a different price.
Seeking help from a real estate agency in Japan
Japanese people usually rely on fudôsanya, which are traditional real estate agencies. Unfortunately, Japanese property owners do not always accept letting to foreigners. The solution is to turn to real estate agencies open to foreigners. They are easily recognizable. They have multilingual staff (mostly English, Vietnamese, Chinese, Spanish, French, etc.) and offer services and products tailored to the needs of foreigners. The conditions are generally more flexible than for a classic real estate agency (no unnecessary fees, no need for a guarantor, etc.).
Define your preferences
Are you looking for a house or an apartment? Are you looking to buy or rent? Depending on your situation, the purpose of your move to Japan, your budget, your future prospects, and your preferred location, you will probably have certain preferences. Foreigners who settle in Japan for the long term may choose to buy a house or an apartment. Others may just prefer renting.
Choosing a real estate agency in Japan
Good to know:
To rent accommodation in Japan on a long-term basis (more than three months), you need to have a valid residence permit.
There are two types of real estate agencies in Japan: traditional ones and those dealing with foreigners.
Fees for real estate agencies in Japan
Former fees adopted by real estate agencies are as follows:
- Reikin: An amount of money paid to the owner as a thank you. It can be as much as two to three months' rent.
- Shikin: deposit.
- Shikikin, or hoshôkin: A non-compulsory guarantee. Your guarantor can be a legal entity or an individual. The company or the real estate agency can act as guarantor for you. One year of guarantee is generally equivalent to one month's rent.
- Chûkai tesûryô: Agency fees. They are equivalent to about one month of rent.
- Kôshinryô: Fees to pay to renew your lease. In Tokyo, an apartment lease usually lasts two years. Don't hesitate to discuss with the real estate agency about reducing the costs if you know you will stay more than two years.
- Kasai hoken: Fire insurance. In practice, you sign this insurance contract at the same time as your rental contract.
Fudôsanya (traditional or classic real estate agencies) are adapting to the market. Many of these fees are no longer charged by fûdosanya, the traditional real estate agencies. Just as some banks in Japan have adapted to the rise in immigration, such as Shinsei Bank, which offers its services in English, traditional real estate institutions have adapted to the changing migration market. Some have agents who speak English and/or other languages. Others rent to both Japanese and foreigners (only long-term rentals).
Although attitudes are slowly changing, many landlords are still reluctant to rent their properties to foreigners.
The real estate agency may ask you to provide proof of income, like a copy of your work contract. As mentioned above, rental agreements are generally made for an average of 2 years, but shorter lease periods also exist. Agencies renting to foreigners have developed several types of packages, like specific one-month or multi-month rentals, in order to better adapt to the demand.
Types of accommodation in Japan
Different types of housing options are available in Japan: studios, western style apartments, Japanese-style apartments, houses, and sharehouses. Due to population density, especially in big cities like Tokyo or Yokohama, you will even find many tiny accommodation options.
Acronyms used to describe Japanese housing:
1 = 1 room
R = Room
L = Living room
D = Dining room
K = Kitchen.
Thus, apartments are labeled 1R, 3LDK, 4LDK, etc. Prices increase according to the size and number of rooms. This is why it is important to keep track of the price when you are going to live with a group of people.
The Jo: the traditional measurement unit
Traditional Japanese apartments usually have at least one room where the floor is entirely made of tatami, the traditional Japanese carpet used for flooring. Because of the traditional use of tatami in all apartments, the size of accommodation is therefore measured in Jo. It corresponds to the size of a tatami mat where 1Jo is equivalent to about 1.62m.
Inflation and real estate prices in Japan
With a 2.1% inflation rate, Japan seems to be in a good position compared to many European and North and South American countries. However, the real estate market in Japan is in a critical situation. Prices have risen from 10 to over 15%, depending on the region. It is even 16.9% in Kagoshima. This prefecture has seen the highest increase, far ahead of Tokyo and its 12.9% rise, 15.9% in Kanagawa, 15.5% in Gifu, or 15.3% in Wakayama.
Accommodation prices remain higher in Tokyo. In March 2022, apartments were sold for an average of 22,600,000 yen in Kagoshima Prefecture, 34,520,000 yen in Kanagawa, 17,090,000 yen in Gifu and 14,290,000 yen in Wakayama. In Tokyo, the price was 62,510,000 yen, on average. Inflation is pushing up prices while demand is falling.
How to find accommodation in Japan?
You can go through a traditional agency or an agency dealing with foreigners, or simply surf a general property rental website, classified ads. If you choose the fudôsanya, you will need good knowledge of Japanese, especially if you are looking for a place in a small town. Word-of-mouth and social media might help as well. Expatriates who are about to leave Japan might be selling their apartment, or they may refer you to people they know who are offering to sell/rent property and/or furniture.
Whether it is a purchase or a long-term rental, a real estate transaction is an investment. Therefore, it is better to be on the spot to visit your accommodation and check that it meets your expectations. For example, renting an apartment in Shizuoka Prefecture is not the same as in Hyogo Prefecture.
Unusual accommodation options in Japan
Manga cafés, capsule hotels, these places can be, so-to-say emergency accommodation options in Japan. Capsule hotels are still very successful. They are suitable for a few days stay, but not more. The same goes for the manga café, which provides the bare necessities (individual box, PC, bunk, shower, snacks). These places are often used by Japanese people who missed the last train.
Final tips for renting accommodation in Japan
Accommodation is, along with transportation, one of the biggest items of expenditure in Japan. Gather all the information you can about your future neighborhood. Is it in Tokyo? Why did you choose the capital? Even if you live in the Japanese megalopolis, there are tricks to lower the bill, such as avoiding the hyper-center and moving to the outskirts. In Fussa or Musashino, rents are cheaper.
Do your best to learn Japanese. This will make it easier for you to find a place to visit and live. You will also feel more confident, especially if you need to talk to professionals who speak only Japanese. If you still have some gaps, take a course. This will help you to understand the way the rent is calculated and how to negotiate the contract.
There is a good saying: "For every problem there is a solution". Avoid being left with unanswered questions. Ask for advice from someone you trust. Do not sign any document without understanding it.
Even today, some traditional real estate agencies refuse to deal with foreigners. COVID has seen a growing distrust of foreigners. Without drawing any general conclusions, observe whether the connection with the professional is made or not.
Trust yourself and go step by step. Take the time to define your travel project, to better visualize your future home. Renting a property is not a matter to be rushed, but an integral part of your life project, especially if you are planning a long-term expatriation to Japan.
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