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DALL·E 2023-11-25 19.26.42 - A tall, narrow illustration of the Tsutenkaku tower, designed

Understanding the Rent System in Japan: A Guide for Foreigners

Introduction

As a foreign person in Osaka, Like probably you today, I've experienced firsthand the intricacies of the Japanese rental system. This guide reflects my journey and aims to help fellow expats understand the local rental landscape and stay zen.

Leasing from a Foreigner's Lens

Japan’s rental agreements come in two flavors: the standard lease (普通賃貸借契約) and the fixed-term lease (定期借家契約). My advice, based on real-world experiences, leans towards the standard lease for its tenant-friendly nature but of course, everything depend on your personal case

Installation Cost in Japan

Prepare for the upfront costs:

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  • Deposit (敷金): Often equating to a few months’ rent, it’s a security measure that’s refundable, subject to conditions but from my experiences there is now only fews owner who are asking for this

  • Key Money (礼金): An upfront, non-refundable gesture to landlords, it’s a tradition that persists, albeit somewhat negotiable. From our perspective it's a very crazy tradition but in reality even if I sometimes see appartment without Key Money, in reality trust me, there are often not the best one.

  • Agency Fees: up to a month’s rent, this fee is for the services of a real estate agent and in Japan, there is no way to negociate directly with the owner, so you better choose a good one ;)

  • Cleaning Fee: When vacating the property, you'll be expected to leave it in clean condition. Some landlords charge a cleaning fee upfront to cover professional cleaning services after you move out, ensuring the apartment is pristine for the next tenant.

  • Lock Change Fee: For security purposes, it's common practice to change the locks when tenants change. This fee ensures you're the only one with keys to your new home

  • Guarantor Company Fee: If you don't have a local japanese to be your guarantor you will have to used a guarantor company, which is common for foreigners without local connections, expect to pay a fee for their service, typically 50-100% of a month's rent.

  • Insurance: Renters are often required to purchase fire insurance and sometimes additional liability insurance, which can cost anywhere from ¥15,000 to ¥20,000 annually.

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A prudent budget should account for the deposit, key money, agency fees, cleaning and lock change fees, guarantor company services, and insurance. Collectively, these costs can amount to approximately 4 to 6 months' rent. For a standard apartment in Osaka, where monthly rent might range from ¥50,000 to ¥150,000 (approximately $370 to $1,100 or €340 to €1,000), you could anticipate initial expenses to be around ¥200,000 to ¥900,000 (roughly $1,480 to $6,650 or €1,360 to €6,100).

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When in France, it's usually one or two months of deposit plus the actual rent only, here in Japan and Osaka, as you can see it's an incredible commitment. 

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These figures serve as a general guide; actual costs will vary depending on the specific terms of your rental agreement and the current exchange rates. It’s vital to approach the rental process with a comprehensive budget plan, taking into account both the predictable and the potential unforeseen expenses to ensure a smooth transition into your new home or business premises in Osaka.

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