2025/07/05
Top 10 Frequently Asked Questions in Rentals for Foreign Tenants in Japan

For many foreign nationals beginning a new life in Japan, securing suitable housing is often one of the first and most significant challenges. Beyond language and cultural differences, navigating Japan’s unique rental system can be daunting. Property listings are typically written in Japanese, and lease agreements and key explanatory documents are filled with legal and technical terms—often leading newcomers to proceed with contracts they do not fully understand.

Recognizing these challenges, this guide outlines ten of the most frequently asked questions posed by foreign tenants entering the Japanese rental market for the first time. Each topic is examined with attention to context and practical solutions, offering clarity and confidence to prospective renters. This resource is designed not only for international residents searching for housing, but also for real estate professionals and support personnel assisting them in the process.

Can Foreign Nationals Legally Enter Into Rental Agreements in Japan?

Under Japanese law, there are no restrictions on entering into a rental agreement based on nationality. Therefore, as long as a foreign resident holds a valid visa and legal residency status, they are fully entitled to lease a property in Japan.

However, in practice, some landlords may decline to rent to foreign nationals. Common concerns include language barriers, cultural differences, and uncertainty regarding long-term stays. To navigate these challenges, prospective tenants are advised to seek out properties specifically marked as “foreigner-friendly” or to work with real estate agencies that offer multilingual support. These steps can significantly ease the process and improve the likelihood of securing a suitable lease.

Is It Possible to Rent Without a Guarantor in Japan?

While having a guarantor is traditionally required for rental agreements in Japan, foreign nationals who are unable to secure one can often fulfill this requirement through a guarantor company. These companies act as financial backers, covering unpaid rent in the event of tenant default. For those without access to a personal guarantor, utilizing a guarantor company is an essential part of the leasing process.

To engage a guarantor company, applicants must typically submit identification documents such as a residence card, passport, and proof of employment. The application is subject to screening. The initial guarantee fee usually ranges from half to one month’s rent, with annual renewal fees commonly required thereafter.

Are Lease Agreements Available in English?

In Japan, rental lease agreements are typically drafted in Japanese. This practice stems not from legal obligation, but from long-standing administrative custom. However, with the growing number of international tenants, many real estate agencies now offer unofficial English translations as a courtesy to help facilitate understanding.

It is important to note that the Japanese version remains the legally binding document. In cases where discrepancies arise between the English translation and the original Japanese text, the Japanese version takes precedence. To ensure full comprehension of the terms and conditions, it is highly advisable for foreign tenants to request interpretation services during the legally mandated “Explanation of Important Matters” or to review the agreement with a trusted bilingual advisor.

Is Cash Payment Required for Rent in Japan?

In most Japanese rental properties, rent is paid via bank transfer or automatic bank withdrawal. Cash payments are rarely accepted, particularly for ongoing monthly rent. As such, opening a local bank account is practically essential for tenants.

To open a Japanese bank account, tenants are generally required to present documentation such as a residence card and certificate of residence. Those on short-term visas may face restrictions or be unable to open an account altogether. For tenants unable to secure a bank account, some properties—especially those involving guarantor companies—may offer alternative payment methods such as convenience store payment systems.

It is highly recommended that prospective tenants confirm the accepted payment methods prior to signing a lease and make necessary arrangements, such as identifying financial institutions that accommodate foreign residents.

What Are the Upfront Costs Required Before Moving In?

When entering into a lease in Japan, initial move-in costs typically range from four to six months’ worth of rent. These expenses commonly include a security deposit, key money, first month’s rent in advance, agency commission, guarantor company fee, fire insurance premium, and key exchange fee.

While some properties advertise “no deposit, no key money” terms, these may be offset by higher monthly rents or additional charges such as mandatory cleaning fees. It is therefore essential to review the total cost breakdown stated in the lease agreement and to confirm both the payment schedule and method in advance.

Can Foreign Residents Choose to Live in Preferred Area in Japan?

There are no legal restrictions on where foreign nationals may reside in Japan. Tenancy approval is determined on a property-by-property basis, depending on availability and the landlord’s discretion. In metropolitan areas, many landlords and property managers are accustomed to working with international tenants, and lease arrangements tend to proceed smoothly. In contrast, rural or suburban regions may have landlords or management companies with limited experience dealing with non-Japanese residents, which can sometimes result in longer processing times or additional communication challenges.

Areas with larger international communities often offer multilingual support and a greater awareness of diverse cultural needs, making them more accommodating for foreign tenants. For this reason, selecting a residential area should be approached thoughtfully, taking into account both lifestyle preferences and practical considerations.

Are Short-Term Rental Contracts Possible in Japan?

Standard residential leases in Japan typically span two years, and short-term contracts are considered exceptions that may require special arrangements. However, for those seeking temporary accommodations, furnished units such as monthly apartments (“monthly mansions”) or fixed-term rental contracts are available, often allowing stays from one to several months.

Traditional rental properties generally do not accept lease terms shorter than one year. Therefore, tenants seeking short-term housing must specifically search for listings that cater to shorter durations or explore alternative arrangements, such as corporate leases. It is important to note that short-term rental options often come at a premium, with higher monthly rents compared to long-term leases. A thorough comparison of total costs is recommended when considering short-term living arrangements.

Why Is Fire Insurance Required in Japanese Rental Contracts?

In Japan, it is standard practice for rental agreements to require tenants to enroll in fire insurance. This coverage is designed to protect against damages resulting from incidents such as fire or water leaks caused by the tenant’s negligence, as well as potential liability for damages to neighboring units.

Beyond fire-related incidents, some policies may also cover theft or damage to personal property caused by lightning or other unforeseen events. While real estate agencies typically recommend affiliated insurance plans at the time of lease signing, tenants also have the option to select a different policy—as long as it meets the requirements stipulated in the lease.

Who Should You Contact When Issues Arise?

In most cases, the designated property management company—outlined at the time of contract signing—serves as the primary point of contact for any issues related to the property. This includes emergencies such as water leaks, lost keys, or malfunctioning appliances. Prompt communication with the management company ensures that appropriate action can be taken swiftly.

Upon moving in, it is essential to confirm the contact details, communication procedures, and operating hours of the property management office. For international tenants, it is also advisable to inquire whether interpretation support is available, in case of language barriers during urgent situations.

Will the Security Deposit Be Refunded Upon Move-Out?

The security deposit is typically used to cover the cost of restoring the property to its original condition upon the tenant’s departure. As such, a full refund is not guaranteed. If the property shows no damage beyond normal wear, the deposit is often refunded in part or in full. However, deductions may be made for issues such as stained walls or damage to fixtures.

According to national guidelines, deterioration resulting from ordinary use is considered the landlord’s responsibility. Nonetheless, in practice, the actual interpretation may vary depending on the lease agreement or specific contract clauses. To minimize disputes, tenants are strongly advised to document the condition of the property at move-in—such as by taking photographs—as this can serve as valuable evidence when assessing potential claims at the end of the lease.