Finding Your Home in Tokyo: Apartment

Finding Your Home in Tokyo: Apartment

If the sharehouse life isn’t for you, then you’re likely looking at renting an apartment. A growing population is raising rent prices, and average rent in Tokyo is ranked among the highest in the world, but with careful consideration of your needs and a willingness to compromise, there are plenty of places out there for a range of budgets. This guide will break down the costs involved in renting an apartment in Tokyo, what to consider to find somewhere that fits your budget, and offer tips on how to get from searching for apartments online to actually signing a contract.

Up-front Costs

Before you start your search, it’s important to know that there are many up-front fees involved, so you’ll need to have some savings. It’s not uncommon for these fees to reach the equivalent of 3-5 monthsworth of rent. Here’s what that actually means:

Security Bond (shiki-kin)

A deposit to cover whatever’s needed for cleaning and any repairs outside of accepted wear-and-tear when you move out of the apartment. If you take good care of the apartment while you’re living there, the bond will probably be put toward a standard cleaning service before the rest is returned to you. A security bond is usually equivalent to one or two months’ rent.

Key Money (rei-kin)

More literally translated as “thanks money”, it is a remnant from a time when property demand far outstripped available housing in Japan, and people were grateful to those who gave them a chance. While it’s no longer as ubiquitous as it once was, it’s still more common to find landlords charging key money than not. None of this fee will be returned to you at the end of your tenancy. Key money is usually equivalent to one or two months’ rent.

Guarantor Fee (hoshō-kin)

A guarantor is required to ensure rent in the event that the tenant cannot pay, however, in Japan this role is usually fulfilled by a guarantor company rather than, say, the tenant’s parents. Many real estate agents now require all tenants to use a guarantor company and will have a particular one they deal with. That makes this part of the process relatively easy, but it is an extra cost: usually equivalent to half of one month’s rent, with an annual renewal fee (usually ¥10,000) from the second year.

Key Exchange Fee (kagi-kōkan-dai)

Of course, the previous tenant would have been required to return the keys when they moved out, but there’s peace of mind in knowing the locks have been changed before you move in. This process is often required but sometimes presented as optional. Having the keys replaced will depend on the kind of locks used in the building, but as an estimate, budget ¥10,000~20,000.

Agency Fee (chūkai-tesūryō)

And of course, the real estate agent you deal with will want something for their efforts in helping you find a place and arrange the contract with the owner or management company. Some real estate agents manage their own properties, in which case they may not charge an extra agency fee, but it’s safer to assume you will need to pay it when considering your budget. The agency fee is usually equivalent to one month’s rent plus tax.

Other fees, such as insurance, security, and pest control, vary from property to property and, where they apply, may be optional. The important thing when offered such services is to make sure you find out what is included and whether it’s optional or mandatory.

Starting Your Search

An apartment in Tokyo falls into two loosely-defined categories: apartments (apāto) and mansions (manshon). For the sake of simplicity, this guide refers to both as “apartments.” Real estate agents aren’t always consistent in their designation of buildings, but as a general point of difference, apāto are usually two- or three-floor buildings constructed from wood or light steel, while manshon may be taller and are usually made of reinforced concrete. As a result, the latter are usually more expensive. The usage of these terms isn’t always consistent, but it may help explain price differences in otherwise similar apartments.

Size

The total area of an apartment is often listed in square meters and, more often than not, individual room size is calculated by the number of tatami mats the room would use (whether the room actually has tatami or not). This is presented as 帖 (), or simply “J”. While the exact measurement of a tatami mat varies, think of “1J” as about 1.6 square meters to get an idea of the space.

Layout

Apartment layouts are presented by a simple code. It starts with a number — the number of bedrooms — followed by letters indicating the presence and purpose of other rooms:

  • R = room. “1R” is the most basic of apartments: a single room, often with no kitchen — although there may be a tiny one tucked in a corner — and in some cases, no bathroom.
  • K = kitchen. You can expect at least a cooktop and sink, but counter space varies. In many “1K” apartments, the kitchen is part of a short hallway leading from the entrance to the bedroom.
  • L = living; D = dining. In a “1LK” or “1DK,” the kitchen is likely a part of the living or dining room, with a separate bedroom. “L” suggests a slightly bigger space than “D,” while the use of both letters — e.g. “1LDK” — may indicate a room big enough to be used as living, dining, and kitchen, not necessarily separate rooms for each.

Most smaller apartments have “unit bathrooms” (UB), which contain a toilet and shower/bath in a single, often cramped, space. If you’ve stayed at a hotel in Japan, you probably have an idea of what these look like. Apartments with separate bathrooms and toilets do exist, but rent is accordingly higher.

Average Monthly Rent

Apartment rent in Tokyo can be high, but it’s also a sprawling city with excellent public transport infrastructure. While there may be a “big city” appeal to living in the center of Tokyo, rent becomes much more affordable the further you look from the Yamanote Line. Here are average prices at express stops along the Chūo Line, which conveniently covers a wide stretch from Tokyo Station to way out in the western suburbs. We can see that average rent for smaller apartments rises consistently the closer you get to the city center, and that of larger apartments sees a more drastic increase due to more limited availability.

Finding Your Home in Tokyo: Apartment
Data from SUUMO.

Many apartments also have a monthly management fee (kanri-hi) on top of the rent. If you’re not careful, this can make apartments more expensive than they initially seem, so when searching online, be sure to check the option to include it in your price limit. However, this fee is usually not included in the up-front costs.

Other Common Factors Affecting Rent:

  • Distance from the station: you’ll find lower rent, as well as larger apartments (at more affordable prices), the further you get from a station.
  • Age of the building: the lower rent of an older apartment is usually due… well, it being old, but recently-renovated apartments in older buildings can be reasonably-priced gems.
  • Floors: carpet is uncommon in Tokyo apartments, with most having polished wooden flooring or —  especially in older buildings — tatami mats, which may limit furniture choices and require more maintenance.
  • Pets: keeping pets — especially cats and dogs — is not allowed in the majority of Tokyo apartments, and where it is, will add at least one or two months rent to your up-front costs as a bond. If this is important to you, it will have to be top priority.

Visiting a Real Estate Agent

Where to Begin

Before visiting a real estate agent, search online listings like SUUMO and Chintai, which aggregate properties available at various agencies. After setting your preferred rail line or area, use filters to see if your ideal apartment exists. Then, check the boxes for everything you want at first, then gradually start un-checking filters that you’re willing to compromise on to expand your search and get a better idea of what’s out there. Take note of a range of properties you’d be willing to look into, both for your own clarity and in preparation for the next step.

Choosing a Real Estate Agent

Once you have a clear idea of what you’re looking for and/or several possibilities, it’s time to talk to a real estate agent. If the majority of your shortlist is being listed by the same company, that could be a good place to start. Try a standard web search for some of those apartments, too. Properties are often listed by multiple agencies and, while rent will almost certainly be the same for each, there may be differences in agency fees or discounts on services.

Larger chains like Housecom and Town Housing are easily accessible with offices all over Tokyo, meaning they also have a wide network of properties, and some may feel a sense of security in dealing with an established company, while others may prefer to look for smaller, one-office agencies to search in a specific area. Somewhere in between are companies like Libest, who specialize in a particular area but are well established there with several offices. In any case, your experience will depend largely on the agency, and the agent you end up dealing with so anecdotal advice from people with experience in the area you’re searching is incredibly useful if you can get it.

Meeting with an Agent

Contacting the agent in advance may also help mitigate some of the potential problems faced by foreigners looking to rent in Tokyo (discussed below) and help the agent to better cater to your needs. Let the agent know of a few properties you’re interested in — whether they’re all listed by that agency or not — so that you can get on the same page as soon as possible, and if you get an encouraging response, arrange a time to visit their office.

Assume that your meeting will take a few hours, and expect it to go something like this:

  1. Discuss your needs and preferences.
  2. Look over the details of several properties, including agent recommendations as well as the ones you’ve expressed interest in.
  3. Visit several properties, on foot if they’re near the office, or by car if they’re not.
  4. If you find a place you’re interested in, return to the office and begin the application process.

Potential Issues and Points of Caution

Nationality

It is unfortunately true that some property owners will not rent to foreigners. Real estate agents say that this is due to concern for the likelihood of successful communication, stable income, or long-term residency in Japan. It’s the most uncomfortable part of the process, but if you’re lucky it’s dealt with quickly, one way or the other. Agents often call the landlord before taking you to inspect an apartment, and will likely make a point of your nationality, employment, and Japanese-language ability during that call. There’s no guarantee that the landlord won’t change their mind later, but if you make it past that call you can breathe a tentative sigh of relief.

Language

If your conversational Japanese is solid, and you’ve picked up some relevant terminology in your initial online apartment search, you should be fine through steps 1-3 of the meeting as above. Once you start to apply for an apartment, the language being used will get a lot more complicated, and signing contracts may not be the best time to test yourself. Agents will help break things down, but considering what to do about escalating language requirements before you start could help things go smoother.

If you’re not sure about doing things by yourself, you’ll want to find somewhere that offers language support — SUUMO has this list of real estate companies offering services in English — or try to find someone you trust who can translate to accompany you.

Someone to Vouch for You

As mentioned, most renters will be required to use a guarantor company, but you’ll likely still need to nominate a personal guarantor. Unless your parents live in Japan, you’ll need to ask someone else, ideally of some authority. If your boss is willing to help, it could also double as a character reference for you. Just be sure to talk to them in advance so they’re ready.

Documents, ID, and Residence

Take as many documents — proof of employment and income, for example — and forms of ID as you can. What you’ll need will vary, but anything you can submit on day one of an application will speed things up. While rental contracts are usually two years, you won’t likely be required to have two years on your visa to be accepted, but you might want to avoid cutting it too close.

Be decisive, but be sure

Searching for an apartment in Tokyo can be competitive, and you might not have the luxury of waiting to see what else is out there. If you find an apartment that seems like a good fit, with no major reservations, it may be best to start the application process that day. Compare each apartment you inspect to other places you’ve seen, not something that might not exist. With that said, don’t be afraid to ask the agent to take you to an apartment a second time. If it still feels like the right choice the second time around, maybe it is. We hope that this helps your search for an apartment, but you’re the one who’ll be living there, so whether an apartment is right for you is entirely up to you.

Happy hunting!

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