Our Guide on Renting or Buying a Home in Japan

Jump right in:

• Renting a house or apartment
• Renting in Japan as a foreigner
• Rental process & rules in Japan
• Short-term rentals: Things to Know
• Buying property as a foreigner
• Utilities
• Internet and Mobile Phones

Renting a house or apartment

Renting or buying an apartment in Japan isn’t complicated if you know what to expect. Depending on the landlord and where you choose to live, foreign nationals and Japanese citizens are not treated too differently when renting a place. However, if you’re looking for a place in the countryside, or if you’re dealing with older, more traditional landlords, you may find yourself held to a different set of expectations.

Rent in Japan

How much is rent in Japan? That will depend on where you live and what type of accommodation you might be interested in. Japan is a small country with a high population density due to its limited space. Therefore, Japan’s rent prices reflect the high demand for accommodation and yet not a lot of space to fill it.

Average Rent in Japan

The average rent in Japan varies by city. The national average rent excluding utilities is around 50,000–70,000 JPY (approx. 330–460 USD) per month, but you can expect to pay more than the national average in bigger cities like Osaka, Sapporo, Yokohama, Kyoto, and of course Tokyo.

As far as affordable cities go, expats who find Tokyo too rich for their tastes should look to Kyoto, Fukuoka, Yokohama, Nagoya, Sapporo, or Osaka. These cities are just as vibrant and thriving as Japan’s capital, but slightly less expensive and comprising of a more “small town” feel by comparison.

Average monthly rent examples in Tokyo, Kyoto, and Osaka

Renting in Japan as a foreigner

There are a few things you should be aware of when renting in Japan as a foreigner. The first is that the terms for rental properties are different than what you may be used to in your home country. Terms like “studio” and “two-bedroom apartment” are not common in Japan.

Instead, you’ll see a number in front of a combination of the letters L, D, K, R, or S. The number refers to the number of bedrooms, and the letters represent living and cooking areas:

• L—living room
• D—dining room
• K—kitchen
• S—storage or a free space room
• R—room, this letter refers to a whole apartment that is just a single room (typically called a “studio” elsewhere)

If you see a property listed as 1LDK, this refers to a space that has one bedroom and a larger area that comprises a kitchen, dining room, and living room. Although the kitchen, dining, and living rooms may stand alone as their own separate rooms dependent on the layout of the home, there will not be any doors separating these spaces.

A 1K is a place with a single private bedroom, but no living area. Instead, there will be a small kitchenette, which will typically consist of a fridge, microwave, and maybe a stovetop. Also, large built-in ovens are uncommon in Japan.

All accommodations come with a bathroom. Common bathroom types in Japan are small, compact rooms where the sink is positioned between the toilet and the bathtub/shower area. Some Japanese homes will have bathtubs, but they’re most common in large and old properties. Many apartments and houses in Japan will include a balcony. These are usually small and used for drying clothes rather than sitting and enjoying the view.

Common Property Types and Terms in Japan

• 1R: Just a bedroom. This may have a small kitchenette.
• 1K: One bedroom plus a separate kitchen.
• 1KD: One bedroom plus a combined kitchen and dining area.
• 1LDK: One bedroom and a combined living/dining/kitchen.
• 1SLDK: One bedroom plus a combined living/dining/kitchen and separate storage room.
• Mansion: A concrete apartment complex with three or more floors. 
• Apāto: A two-storey apartment building made of wood or lightweight steel. Units are typically small and may be loft-style.
• House: A standard standalone home. Most common in the suburbs, countryside, and smaller cities. These units lean more towards traditional Japanese-style housing with tatami floors (read more about these below).
• Gaikokujin houses: These are co-living spaces and are similar to a series of studio apartments.

Stigmatized property

If you want to move to Japan, but are worried about the cost of rent, one slightly cheaper option is called jiko bukken, or “stigmatized property”. This refers to a property where an unfortunate incident occurred such as an accidental death, suicide, or other serious incidents. Most Asian cultures have very strong beliefs and superstitions tied to the spiritual world, and therefore properties such as these are notoriously hard to rent.

In order to push these properties, landlords will lower the rent by 20 to 30%. If a stigmatized property does not bother you, they may be the way to go if you’re looking to save some money. You can search for these properties through sites like Jobutsu Estate, Oshima Teru or Oshima Land.

Furnished or unfurnished apartments?

If you’re looking for a long-term rental in Japan, chances are it’ll come unfurnished. If you find yourself needing to furnish your new Japanese home, there are plenty of stores throughout the country. Physical stores such as Ikea, Nitori, and Muji are popular or online sites such as Jimoty or “sayonara sales” via Facebook groups.

If you plan to bring your own furniture, keep note of the type of flooring in the Japanese rentals that you view. Western-style housing will typically come with wood flooring, which is fine for all types of furniture. However, more traditional Japanese places will have tatami floors, which are traditional woven mats. These cannot withstand heavy items, nor are they ideal for furniture that requires constant movement such as chairs. These mats are hard to remove and difficult to replace, so you should have as little furniture as possible in rooms with tatami flooring.

Also keep in mind that most homes in Japan, especially long-term rentals, are unfurnished, so you may also need to provide your own light shades and fixtures. This is not always the case as Gaikokujin houses will often come furnished. Expats being transferred within their own company are also likely to be provided company housing, which should come fully furnished.

Rental process and rules in Japan

Get a realtor

Nearly 100% of properties in Japan are rented through a realtor and realty company. You’ll find many offices that accommodate foreigners, although the greatest concentration can be found within Tokyo and the other major cities.

…And a guarantor

One of the hardest aspects of the rental process in Japan for foreigners is the need of a guarantor. This guarantor, also called a co-signer in some countries, is a person who is legally required to cover your apartment fees should you stop paying rent for any reason.

For most Japanese nationals, this guarantor is typically a family member, and if you have a family member in Japan by chance, you can use them as your guarantor. However, even this can prove tricky if the proposed guarantor cannot prove adequate funds should they suddenly be expected to pay the rent.

As a new expat in Japan, what do you do if you don’t have a guarantor? Luckily, not all Japanese landlords require a guarantor. Most landlords will allow a hosyo gaisha instead (be advised that some landlords may require both a guarantor and a hosyo gaisha).

A hosyo gaisha is a company that serves as a guarantor. Your realtor or landlord may be able to recommend one for you, or they may have a company that they typically use. This hosyo gaisha can also be your work company.

Initial costs

One of the most shocking things for anyone renting housing in Japan are the initial costs. There are a series of fees and deposits, some of which may be refundable, but most of which are not. An example of such fee, which is uncommon to expats, is the key money fee — a fee that started in the 1920s housing shortage as a gift to landlords. While no longer seen as a “present”, it’s required by many landlords. These fees are often not listed in the original listing of the property and therefore can feel like “hidden fees”. When totaled, these fees can often equate to five times the monthly rent.

These are some common fee types you will see listed in rental ads. However, be aware that there may be other fees not listed depending on each individual landlord.

• Security deposit fee: one month’s rent

• Guarantor fee: 50–100% of one month’s rent

• Insurance fee: covers water or fire damage; starts at 20,000 JPY (approx. 130 USD) and goes up depending on the apartment and rental period

• Realtor fee: usually one month’s rent

• Cleaning fee: typically ranges from 30,000–80,000 JPY (approx. 200–510 USD), often included in the security deposit

• Key money: usually one month’s rent

• Changing lock fee: starts at 12,000 JPY (approx. 80 USD) and goes up depending on the property (this is only required if you, the tenant, would like to change the locks)

• Other deposits: required if you have pets or if a landlord has particularly nice furniture they want to insure

To help you get an idea of the initial costs, this is the average deal you would receive for an apartment being rented at 100,000 JPY (approx. 650 USD) per month:

Requirements & documents for renting

Before you sign your rental contract and pay your deposit, you’ll be asked to provide the following documents:

• visa and/or residence card
• residence certificate
• Japanese phone number
• proof of income or sufficient savings (bank statements)
• proof of employment
• guarantor
• emergency contact
• Japanese bank account
• Japanese stamp (hanko or inkan)

A Japanese stamp serves as your official signature while in Japan. If you’ll only be in Japan a few months, you may not need one, but they’re useful to have and required for doing things such as signing a rental contract or opening a bank account. You can get your personalized stamp at a Hankoya shop, local kiosks, or online. It usually takes less than an hour to make them. They cost between 500 and 5,000 JPY (approx. 3.30–33 USD) depending on the size and quality of the wood.

Short-term rentals: Things to know

For some expats, committing to a one-year lease can be daunting, especially if you’re still settling in or job hunting. Short-term rentals offer a flexible and affordable alternative, providing a homey feel while you adapt to Japan. However, due to Japan’s 2018 minpaku law, many short-term rentals are limited to 180 days per year and may only be available in certain areas. Owners must also regularly report guest details to the government.

**Short-term rentals: Average price **

Although the overall costs of short-term rentals can be less than the daily costs of staying in a hotel, the price will still be fairly high, especially for those who want their own, private place. As the majority of these places will be monthly furnished rentals, average prices throughout the country range between 100,000 and 200,000 JPY (approx. 660–1,320 USD) per month. Prices will be less if you rent in the countryside, but keep in mind the commuting costs that will come along with that.

Short-term rentals: What documents do you need?

The documents you need to rent a short-term rental will vary depending on the landlord and how long you intend to stay in the accommodation. In general, you will need your original passport or your Japanese visa. Some properties would also require you to sign with a Japanese stamp and provide your contact number.

For stays of a few months or more, you may be asked to pay a deposit of first and last month’s rent. In some instances, you may also be asked for a brokerage fee that is applicable to long-term rentals. Fees are refundable or not depending on the landlord.

Buying property as a foreigner

How do you buy a house in Japan as a foreigner? Expats will be happy to learn that the process is fairly standard when compared to most other countries. That said, the language barrier and some cultural differences might make things feel more complicated and confusing at times. Just like with renting a place, expats will need to work with a realtor in order to buy a home.

In general, there are no legal restrictions on owning a home in Japan as a foreigner. You don’t need to have citizenship in order to buy a house. Buying a home also does not guarantee expats a path to permanent residency in Japan either.

Requirements to buy a property in Japan

As a foreigner, the main requirements you’ll need relate to applying for a bank loan. The primary requirements for this are one of the following:

• hold Japanese permanent residency or be married to a Japanese citizen

• be employed in Japan and pay Japanese taxes

• reside in Japan and hold a residency permit

Japan house prices

The most expensive city in which to buy is also the most expensive in which to rent: Tokyo. In the capital city, a 70-square-meter apartment will cost between 55 and 80 million JPY (approx. 360,000–530,000 USD). The cheapest place to buy a home is in prefectures like Aomori and Tottori, with homes costing as low as 3 million JPY (approx. 20,000 USD), many of such homes being akiya (abandoned homes).

Process and steps for buying a house in Japan

Step 1: What do you want?

The first step to home buying in any country is deciding what type of property you want. Because there are no restrictions or special taxes for foreigners owning homes in Japan, your choices are limitless. You choose the type of housing based on your personal preference in homes. You can purchase condominiums, detached houses, traditional homes, urban homes and, unlike in some Asian countries, even parcels of land upon which to build a new home.

Step 2: How much can you afford?

Just like renting a space, buying a home in Japan requires a good deal of money and savings. Japan’s house prices start around 25,000,000 JPY (230,000 approx. 164,000 USD) and go up from there. The overall national average for buying a house is 40,000,000 JPY (approx. 263,000 USD).

You’ll also need to calculate to take into account the various taxes that’ll be included, which will add on nearly 7% extra. Japanese banks will lend to foreigners, but you’ll be looked upon more favorably if you have citizenship, permanent resident status, are married to a Japanese citizen, or have proof of long-term work in Japan.

Step 3: Search

While it’s possible to search for property to buy on online sites such as real estate japan, suumo and homes.co, you’ll also need to work through a realtor. During your search, you’ll also want to ensure that all legal requirements are being met. For example, you’ll want to check the property’s status, relationship rights, and legal regulations to ensure that everything is following the law. The realtor you hire should be able to help you with these matters.

Step 4: Apply for a loan

After exploring different properties, you’ll get a sense of the price range for the kind of home you want. Your next step would be to secure a mortgage for your new home, this is essential especially because popular properties will require you to place a bid. As a foreigner, you might be required to give an affidavit of identity when applying for a loan or making a bid for a home. For this affidavit you would need to go to a public notary, fill out a form with your personal details (full name, passport, date of birth, address), and have it notarized.

In general, the application fee for a loan can cost around 20,000–100,000 JPY (approx. 130–655 USD) and the application process can be seen below.

Step 5: Bid for a home

Once your pre-application for a mortgage is approved, you make an offer to purchase your desired home.

How to apply for a mortgage in Japan

Securing a mortgage or loan in Japan as an expat can be difficult, but not impossible. This is because Japanese banks are hesitant to give loans to foreigners who they don’t think will remain in Japan for long. The type of visa you hold will influence whether or not you’ll be approved for a loan. If you have a work visa, permanent residence visa, or spouse of a Japanese national visa, this will sway Japanese banks in your favor. Likewise, the longer you have lived in Japan the better, as this demonstrates your intention to remain in the country.

To apply for a mortgage in Japan, you’ll need to fill out a home loan pre-application (jizenshinsa). You should do this once you’re interested in a specific property because listing these details will help to strengthen your application. The pre-application will be submitted to the bank (or other financial institution) and used to determine whether you qualify for a loan or not. If this application is approved, the rest of the process should run smoothly. Keep in mind, not every bank in Japan provides this service. When looking for a home, it’s also best to work with a professional to help you through the process.

Whether or not your chosen bank requires a pre-application form, they’ll want to check the following before approving you for a loan:

• credit history
• current debts
• duration of your current employment
• your income
• tax statements (gensen-choshusho)
• detail of outstanding loan

Banks will also want to verify that you are in good health — to ensure you don’t have any major illnesses. Many mortgage lenders require applicants to take out Group Credit Life Insurance (dantai shinyo seimei hoken) as a condition of the loan.

Once your pre-application for a home loan is approved, you can submit an application to purchase your desired home.

Utilities

Utility bill payments are typically not included in the rent unless you’re staying in a Gaikokujin house or monthly rental. Prices vary depending on where you live in Japan, but on average you can expect to spend around 15,000 JPY (approx. 130 USD) per month on electricity, gas, and water.

Setting up your utilities in Japan is relatively easy. For most places, it only requires calling the utility provider and putting your name on the account associated with your address. Set-up takes only a matter of days, and in some areas, everything can be up and running the same day you move in.

Electricity

One useful thing to know is that Japan is divided into ten different electric grid regions. These are owned by two primary providers: TEPCO and KEPCO.

Required documents and information include:

• your name

• your service address

• contact details such as email and phone number

• service start date

• meter power capacity/contract ampere

• method of payment

Gas

You’ll need to call your local gas company to have someone come to your home and turn on the gas. You must be at home for them to do this. Once they are there, the set-up should take no more than ten minutes.

Two major gas providers in the country are:

• Tokyo Gas

• Osaka Gas

Water

Unless you move into a place that has been vacant for a long time, the water in your unit should still be on from the previous tenant. Like the electricity, the main task required of you should be to call the company and change your name and contact details.

Internet and mobile phones

Getting a phone number and staying connected to the internet are very important — not just for your personal connectivity in this digital age, but also because having a local number is necessary for many procedures, like opening a bank account, renting an accommodation, or finding a job.

Cell phones

There are three main phone providers in Japan: Softbank, Docomo, and Au (KDDI). There are also several smaller companies. Each provider will have a variety of different plans that will range from prepaid options to yearly contracts. If you don’t speak sufficient Japanese, it’s worth looking online at nearby branches to see if they have English-speaking staff. Setting up a contract is easy, but it will take some time. You should allow two to three hours for the entire process. You’ll need to bring the following with you:

• official ID (like a passport)

• Japanese stamp (hanko)

• form of payment (most likely a credit card)

Internet

As an uber-progressive country where robot cafes exist, there are plenty of options when it comes to installing internet and Wi-Fi in your home. Expats will have their choice whether they want a high-speed fiber optic / fiber-to-the-home connection, cable TV line, or ADSL.

Popular internet providers throughout Japan include:

• Asahi Net

• KDDI

• NTT Communications Corp

• SonixNet ISP

• Softbank Corp

Costs will average between 3,000 to 10,000 JPY (approx. 20–66 USD) per month. The installation time from when you make your appointment until you are online can range between one to two weeks, depending on the provider and your location. If you’re someone who needs to be connected right away, fear not — Japan has plenty of free Wi-Fi hotspots that are easy and quick to log on to.

Most contracts will be offered for one to two years. If you don’t plan on being in Japan that long and want a less committed option, you can consider purchasing pocket Wi-Fi, which provides fast set-up, but slower connection speeds and limited data.

Information needed to set up most internet connections:

• passport

• contact information

• lease agreement

• Japanese phone number

How to watch your home country’s TV in Japan

While Japanese television is known for quirky and entertaining shows, there may be times when you want to watch familiar shows from your home country. One way to get back into your regular shows is through online streaming services such as Netflix, Amazon Prime Video and Disney+=. However, since streaming libraries can vary by region or country, you might find that a few of your favorite shows or movies from home are not on the platforms. You can always use a VPN to access more content from other country’s catalogues instead.

Japan’s Nippon TV also has an agreement with the American company Hulu, creating Hulu Japan. You can also install satellite TV or SKY Perfect TV, which connects to online content and can be used to watch shows from different parts of the globe.