Rent, rent, rent

Renting in Australia is a simple and cheap matter compared to that in Tokyo.  I’m not talking about the difficulties of finding an apartment you like, in a location you like.  I’m talking about the process you have to go through once you’ve found your chosen abode and the upfront fees you will have to pay.

As many of you know, to rent an apartment in Australia, you simply complete your application form, pay one month’s deposit and move in.  The rental rates are comparatively very low so it’s all quite straightforward.  In Tokyo, however, you are likely to find yourself paying the following fees before you are even allowed in the front door:

1.  one month’s rent as an agent’s fee;

2.  two month’s rent as a deposit;

3.  the first month’s rent in advance; and

4.  two month’s rent as “key money” (I’ll explain this later).

So you are up for six months’ rent before you even walk through the front door.  I don’t want to be so vulgar as to mention precise sums of money, but let me just say that one month’s rent for an apartment in a popular area of Tokyo is not an insubstantial amount of money!  But wait, there’s more.  You are also liable for a lock-change fee and then a further fee to insure the property against earthquakes.  Yes, that’s correct: you pay to insure the property against earthquakes even though you don’t own it.

To make matters worse, the two months’ rent you paid as “key money” is no more than a gift to the landlord.  It is not refundable.

So your landlord has six months’ rent in their pocket before you even move in.  You would think that adequately protects their interests should you default.  Well, your landlord disagrees.  To rent an apartment in Tokyo, you also need a guarantor to guarantee your obligations for the life of the lease.  And I’m afraid your mate, Trevor, won’t do as a guarantor either.  You need an institution of respectable financial stature to back you.  If you can’t find a volunteer, you will have to pay a rental insurance company to act as your guarantor. 

 

I’ve probably said enough to convince you that matters are tipped somewhat in favour of landlords in Tokyo, but it’s not all bad news.  There are clearly some obstacles to renting in Tokyo, but they are all manageable (provided you have enough money saved!).  Actually, there are some good points as well.  First, there are many apartments available in Tokyo so you have plenty of options, even at short notice.  Secondly, many apartments are designed for one person so if you like flying solo, Tokyo will appeal.  Thirdly, all of the above fees are negotiable.  If you have a good agent on your side and come across as reputable, you might get some of them reduced.  Finally, there are many real estate agents who are friendly and keen to help you.  They will drive you from apartment to apartment and give you plenty of advice.  That said, you are paying them a month’s rent or more as an agent’s fee.

Before we conclude, there is one last point I should make about renting in Tokyo: if you expect the pillaging of your savings to be rewarded with the keys to a princely manor on 20 acres of swan-nibbled countryside, think again.  My first apartment was 20 square metres.  My current apartment is 26.7 square metres.  This is quite normal.  Still, it’s mine.  My little corner of the world, even if it’s only that—a corner.

Thank you for reading and take care.

Our Man in Japan.