How rental contracts work in Japan for foreign residents
Understand guarantor companies, deposits, key money, renewal fees, and cancellation notice before signing a Japanese apartment contract.
Next step
Check the latest conditions before you decide
Fees, campaigns, language support, and cancellation rules can change. Confirm the official conditions before applying.
Check rental contract points before applyingRental contracts are mostly about hidden conditions
Finding an apartment in Japan is not only about rent and location. Foreign residents also need to understand guarantor companies, initial costs, renewal fees, cancellation notice, and move-out cleaning rules. If these are unclear, the first month can become much more expensive than expected.
Costs you may see before moving in
| Cost | Meaning | Refundable? |
|---|---|---|
| Deposit | Money held for damage or unpaid rent | Sometimes partly refundable |
| Key money | Non-refundable payment to landlord | Usually not refundable |
| Agency fee | Fee paid to real estate agent | Usually not refundable |
| Guarantor fee | Fee for guarantor company | Usually not refundable |
| Fire insurance | Insurance required by contract | Usually required |
Guarantor companies
Many landlords require a guarantor company. This company guarantees rent payment if the tenant does not pay. The tenant usually pays the fee. For foreign residents, guarantor screening may include residence status, income, Japanese phone number, emergency contact, and work information.
Do not assume that a listing accepts foreign residents. Ask before viewing. It saves time and avoids application rejection after you have already prepared documents.
Cancellation and move-out notice
Most contracts require advance notice before moving out, often one or two months. If you leave without proper notice, you may need to pay extra rent. Move-out cleaning fees and repair rules should also be checked before signing.
When to use foreigner-friendly agencies
A foreigner-friendly rental agency can be useful if you need English or multilingual support, cannot read contract documents, or do not yet have a Japanese guarantor. However, compare fees and supported areas. Some agencies focus on short-term or furnished apartments, which may cost more.
Final advice
Before signing, ask for a written cost breakdown and cancellation conditions. If you do not understand an item, do not rely only on verbal explanations. Rental contracts affect your money and address registration, so clarity matters more than speed.
Before you apply
- ✓Confirm total initial cost before paying
- ✓Check guarantor company fees
- ✓Read cancellation notice requirements
- ✓Confirm whether foreign residents are accepted before viewing
FAQ
Do I need a guarantor in Japan?
Many rental contracts require either a personal guarantor or a guarantor company. In practice, guarantor companies are common.
Is key money refundable?
Usually no. Key money is different from a deposit, so check each cost item before signing.
References
- Guidebook on Renting Housing in Japan - Ministry of Land, Infrastructure, Transport and Tourism