How to rent a property in japan | Lease Agreement

The process of a rental property lease agreement, beginning by submitting an application, requires 2 or 3 weeks for the completion. The process may require more time during the busiest time from February to the end of March, while many people move in and out before the fiscal/school year starts in April in Japan. Also, properties for foreign residents will be in high demand between April and July. Considering your schedules, such as for school entrance and career start in Japan, be well prepared to complete the procedure as smoothly as you can.

Required documents for a lease agreement

Though the time required to complete the process varies depending on the circumstances, necessary documents are basically in common and required when you apply for a rental property. It is advisable that you provide all the documents before starting property searches as the preparation can be more time-consuming than you expected.
To complete a lease agreement, non-Japanese tenants are required to provide the following documents.

For Individual lease agreement

Personal identification (Foreign nationals)
– Photo identification
(Resident card or a copy of passport – Copies for all the family members moving in)
Note: Some agencies may require your seal certificate (If you have a registered seal ‘Jitsuin’) or signature certificate.
■Most of the landlord requires Resident card for Tenancy screening.
-Employee certificate

Personal identification (Individuals with Japanese citizenship)
– Photo identification
(Resident card or a copy of passport – Copies for all the family members moving in)
– Seal certificate (Inkan-Shoumei sho) 
– Residence certificate (Juminhyo) 

Proof of income (Must)
Documents to show proof of income such as; Certificate of Employment Salary statement, Bank statements, and Tax payment certificate.

Application for guarantee contract
In the case of using a house rental guarantor company (Yachin Hosho-gaisha), who will act as your joint guarantor, this contract is essential. The house rental guarantor company is designated by the landlord or the property management company, which means tenants cannot choose which guarantor company to use. The service rate will be between 50% and 100% of 1 month’s worth of the rent, and the payment is made when the tenant signs the property lease agreement. (The guarantee contract is renewed yearly, and the fee will be 10000 JPY/year) The guarantor company will screen the tenant before agreeing.

Joint guarantor (If tenants can find a qualified person)
Note: In some cases, it requires the guarantor is a relative within the third degree.

The guarantor must be a Japanese who can provide; proof of income (収入証明書), a seal certificate (印鑑証明書), and a letter of commitment (確約書).
The tenant who cannot find a joint guarantor needs to use a rental guarantor company.
■If a foreigner makes an individual contract, it is mandatory to use a guarantee company.

Who is a joint guarantor?
A Joint guarantor (Rentai Hoshonin) is the person who takes legal responsibility along with a tenant. If a tenant defaults in payment for rents or damages occurred, the joint guarantor is obligated to make the payment on behalf of the tenant. Having to take such heavy responsibility, finding a joint guarantor is always not easy. In the case of Japanese, the joint guarantor can be a parent still working or a relative who has income. Non-Japanese will find it more difficult because the joint guarantor must be Japanese. If you are an employee at a company, one option is to ask your employer to be the one for you.

Information on an emergency contact person
Must be a Japanese who can contact in Japan.
Mobile phone number, Date of birth, Address, Name, Name of the workplace, and Telephone number are required.

Payment
To find the payment method ask your real estate agency/house rental guarantor company.

For a corporate lease agreement

Personal identification
– Photo identification
(Resident card or a copy of passport – Copies for all the family members moving in)

Proof of income (for some landlords)
Documents to show proof of income such as; Certificate of Employment Salary statement, and Corporate brochure (depends on the size of the company)

Copy of corporate registration

Information on an emergency contact person
Must be a Japanese who can contact in Japan.
Mobile phone number, Date of birth, Address, Name, Name of the workplace, and Telephone number are required.

Payment
To find the payment method ask your real estate agency/house rental guarantor company.

Steps to complete a lease agreement

Follow the 4 steps to complete your lease agreement, including application and screening.

1. Submit a rental application
2. Have a screening by the landlord
3. After going through screening, receive an explanation
   ‘Important Points Explanation of Property to be Leased’
4. Sign a lease agreement

Step 1. Submit a rental application
If you find a good property, apply immediately as the application will be accepted on a first-come-first-served basis. If you prefer to rent a property for foreign residents in the urban area, you should take quick action as the availability is limited. Remember, the application can be canceled without a fee in Japan.

Step 2. Have a screening by the landlord
The landlord screens the tenant and examines the state of solvency, emergency contact, joint guarantor, and personal character. The screening is usually done in 3 days to 1 week, but more time may be expected in case of incomplete documents.

Step 3. After going through screening, receive an explanation ‘Important Points Explanation of Property to be Leased’
The real-estate agency conducts this explanation, usually when the tenant signs the lease agreement. Under the Japanese law of Real Estate Transaction Business Act, a registered real estate transaction manager at an agency who acts as a go-between, is to explain the state of rental property and the lease terms to the tenant in order to establish measures to prevent conflicts. If the tenant makes a contract with the landlord in person, this explanation may be omitted.

Step 4. Sign a lease agreement
After reading carefully and agree to the terms and conditions, sign the agreement. The payment for deposit and key money may also be made at this stage through the agency.

Hints

– Those having a problem understanding the Japanese language should ask the agent in advance if the contract is available in English. Though the lease agreement is provided only in Japanese, agencies specializing in rental properties for foreign clients may offer the contract with English translation.

– As a general rule in Japan, sealing (Inkan stamp) is used to conclude a contract. However, non-Japanese may be allowed a handwritten signature as well as Inkan sealing. In the case of using an Inkan stamp, make sure which type of Inkan stamp is designated to use, whether Mitome-in (ordinary seal) or Jitsuin (registered seal).

– If you are now outside of Japan and start living at the rental property on arrival, carefully schedule the date of moving in and consider the rental period when you sign up. Deciding the date of moving-in is also crucial if you use a moving company.