Infrastructure

Infrastructure — 2.2

Housing Strategy

Finding and securing a Tokyo or Japan apartment as a foreigner is navigable once you understand the system. The upfront costs are the main shock — prepare for them.

4–7×

Upfront cost (months of rent)

1 month

Typical agency fee

1–2 months

Key money (central Tokyo)

2 years

Minimum lease term

Understanding the Japanese Rental System

Japanese rentals come with several upfront costs that do not exist in most Western markets. Understanding them in advance prevents the shock that derails many relocations.

CostJapanese termAmountNotes
Deposit敷金 (shikikin)1–2 monthsRefundable minus damages and cleaning
Key money礼金 (reikin)0–2 monthsNon-refundable gift to landlord. Negotiable in some areas.
Agency fee仲介手数料1 monthPaid to the real estate agency. Sometimes split landlord/tenant.
First month rent1 monthPro-rated if mid-month move
Guarantor fee保証会社0.5–1 month (first year)Required for most foreigners. Annual renewal ~10,000–20,000/year
Lock replacement鍵交換¥15,000–25,000Standard at move-in
Fire insurance火災保険¥15,000–25,000/2 yearsRequired by landlord

Total move-in cost for a ¥150,000/month apartment in central Tokyo: typically ¥750,000–1,100,000. Budget for the top of the range.

Neighborhoods by Archetype

Tokyo — Founders and operators

  • Minato-ku (Azabu-Juban, Hiroo, Roppongi): highest international density, English-language services, embassies. Rent: ¥180,000–500,000+ for a 1LDK–2LDK.
  • Shibuya / Daikanyama / Nakameguro: creative class, startup ecosystem, walkable nightlife. Rent: ¥150,000–300,000.
  • Shinjuku / Yoyogi: good transport hub, more local, slightly lower cost. Rent: ¥120,000–220,000.
  • Setagaya (Sangenjaya, Shimokitazawa): quieter, residential, growing expat presence. Rent: ¥100,000–180,000.

Tokyo — Minimalist setup

  • Koenji, Kichijoji, Nishi-Ogikubo: artisan neighborhoods, cafes, lower cost, good rail access. Rent: ¥80,000–130,000 for a 1LDK.
  • Akihabara / Sumida (East Tokyo): emerging tech scene, cheaper, improving infrastructure. Rent: ¥80,000–150,000.

Outside Tokyo

  • Fukuoka (Tenjin, Daimyo): ¥60,000–120,000 for a generous 1LDK. Best value per square meter in a major Japanese city.
  • Osaka (Namba, Shinsaibashi, Nakatsu): ¥70,000–140,000. Central options are strong.
  • Kyoto: beautiful but restrictive — many buildings protected, renovation rules complex. Higher cost for quality.

How Foreigners Get Approved

The guarantor system is the gatekeeper. Japanese landlords traditionally require a Japanese national guarantor. For foreigners without Japanese family or connections, a guarantor company (保証会社) is the solution.

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How Foreigners Get Approved

The guarantor system is the gatekeeper. Japanese landlords traditionally require a Japanese national guarantor. For foreigners without Japanese family or connections, a guarantor company (保証会社) is the solution.

  • Most real estate agencies now work with guarantor companies — ask explicitly if they do
  • Common guarantor companies: ORIX Hosho, Casasoft, Casa, Nihon Chintai Hosho
  • Typical cost: 0.5–1 month rent for the first year, ¥10,000–20,000/year after
  • Requirements: proof of income (pay stubs, tax returns, or company financials), residence card, passport
  • Self-employed and company directors: provide 2 years of company financials or a bank statement showing balance

Foreigner-friendly agencies

Sakura House, Fontana, Tokyo Apartment, and Able Real Estate have streamlined processes for foreigners. For premium properties, Ken Corporation and Mori Living specialize in high-end expat placements with full English support.

Negotiation

Japan rental negotiation is quieter than most markets but possible — particularly in a soft market or for longer vacancy periods.

  • Key money (礼金) is the most negotiable item — especially in buildings with vacancies
  • Rent itself: negotiable 3–8% off list in a soft market. Ask your agency to try — the worst answer is no.
  • Free rent period (フリーレント): 1 month free is achievable, especially for 2-year leases
  • Moving in during February–March (peak season): less negotiating power. October–January: most leverage.
  • Bring a Japanese-speaking friend or agent to negotiations — even if the landlord speaks English

Corporate Leasing

If you have a registered Japanese company, corporate leasing bypasses many of the personal guarantor complications. The company signs the lease — the company's creditworthiness is assessed rather than your personal credit history.

  • Requires: company registration certificate, corporate bank account, company seal, and proof of business activity
  • Benefits: higher trust from landlords, deductible as business expense, easier to upgrade without personal financial scrutiny
  • Downside: the company must have at least 2–3 years of history for many premium buildings
  • New companies: supplement with guarantor company — most landlords accept this combination

Important

Do not use your company address as your residential address for tax purposes without advice from a Japanese tax accountant. The implications depend on your visa status and business structure.

What the Apartment Itself Costs to Run

Monthly running costs beyond rent:

  • Management fee (管理費): ¥5,000–20,000/month, often included in listed rent
  • Gas: ¥3,000–8,000/month depending on usage and season
  • Electricity: ¥5,000–15,000/month (heating/cooling drives this significantly)
  • Water: ¥2,000–4,000/month — often billed quarterly
  • Internet: ¥4,000–6,000/month after installation
  • Total utilities: ¥15,000–35,000/month on top of rent

Consulting

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