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R e n t A d v i c e
STEP1 Decide your criteria Deciding a budget  Location / nearby stations  Building type  Size / room arrangement  Others  Our advice
STEP2 Gather background information Searching for a property  Market Value  Our advice
STEP3 Find a real estate agent Real estate agencies  Contacting a realtor  Filling out a request form  Our advice 
STEP4 See for yourself  Observing the actual property  Checkpoints  Our advice
STEP5 Application Application Form  Application fee  Evaluation  Guarantor  Required documents  Negotiating   Numerous applicants  Interview Our advice
STEP6 Signing the Lease Agreement The lease  Payments due this day  Explanatory note of important items  Lease Agreement  Insurance  Key  Final check before moving in  Our advice
STEP7 Moving Movers  Moving in  Getting settled in  Our advice



Step 1 : Decide your criteria
  Property is extremely valuable in Tokyo. In fact, it is the most highly priced in the world. Furthermore, because of the high concentration of foreign embassies and corporations in the area, Minato-ku is the most valuable area in all of Tokyo. When searching for a new home or office in this area, please keep this in mind. For example, you may find an apartment that suits your needs perfectly and then find that the market value is three or four times as much the price that would be expected for it in your home country. This is an experience that will become familiar to you as you continue your search here. You may need to adjust your expectations a bit when moving to Tokyo for the first time.  
 
| Deciding a budget |
  When deciding on a budget, please consider that it is a set rate that needs to be paid every month for the whole term of the lease. Planning ahead is imperative in avoiding any future struggle. Remember that the total to be paid each month will end up including other bills and fees such as utility bills, management fees, and common charges.

Generally about 30% of the monthly income is considered a feasible housing budget. However, this should be regarded as an example rather than a rule; there may be some that find 20% too burdening and others that find 40% easily manageable. These standards of course vary on an individual basis as incomes, expenses, etc. differ from person to person.

When estimating how much you will be able to pay each month, it would be better to underestimate rather than over. Bonuses and other irregular earnings should not be calculated into this estimate. There will be other charges that come up during your tenancy, such as a renewal charge every two years (usually equal to one month's rent) and insurance (usually around \20,000).
 
 
| Location / nearby stations |
  There are many reasons for which people choose a new area as their home. Some common deciding factors are workplace or hometown proximity, area schools, area reputation, or just plain desire to experience a certain city's atmosphere. Before beginning your search, organize and prioritize factors to consider in choosing a location. It would be helpful to familiarize yourself with the area a bit. @Decide specific stations and transportation lines you would like to be situated near. Consider what workplace(s) and school(s) you and your family members will be commuting to and plan out a convenient route and alternate ones.  
 
| Building type |
 

Properties available for rent can be narrowed down to apartments, condos, buildings, office spaces, or other commercial use spaces. They are categorized by building types and common uses, so specifying your purpose will narrow down your choices.

 
 
| Size / room arrangement |
 

When deciding on room arrangement, consider how many occupants there will be. In Japan, floor plans are labeled 1DK, 2SLDK, etc. "D" stands for dining room, "L" stands for living room, and "K" for kitchen. These rooms are usually interconnected as one common area, rather than separate units. "S" stands for storage. The head number specifies how many bedrooms there are.

For those living alone, studios, 1K, 1DK, and 1LDK arrangements are recommended. For two or more occupants, choices recommended are 1LDK, 2DK, 2LDK, and so on. There should be enough bedrooms to house all adults in the household. No matter how spacious a DK or LDK room, they are not very well suited to be turned into bedrooms.

Room area is specified as 20sq.m, 30sq.m, etc. according to floor space. Properties with the same room arrangement are not necessarily of equal area. For example, a 1DK can range from 30sq.m to 60sq.m. In reality, there may be some 3LDK homes that are smaller than some 2LDKs.

Do you know how much area your current home covers? It is important to understand how much space you require to live comfortably. Real estate agents often introduce homes in their unoccupied state. A room may look vastly spacious then, but suddenly seem cramped when filled with furniture. To avoid this mishap, have a good idea of what size you prefer your rooms to be.

2DKs are usually similar in size to 1LDKs, and 3DKs to 2LDKs. In some cases there are homes that convert a certain area designated for a bedroom into extra space for an LDK/DK area. These rooms are becoming increasingly popular to people living alone, newlyweds, and young couples who prefer homes with a spacious feel.@@(see figure)

 
 
 
 
| Others  |
  When listing conditions such as "auto-lock system," "over two floors," "new
building," "near station," etc. the more preferences you have, the more limited the selections available. If you have requests that must be met such as "pets allowed" or "parking space availability," it is advisable to use these as a searching guideline and then try to meet other secondary preferences. Rate listed points in order of importance and group them into "must have," "would prefer," and "nice accessory" groups.
 
 
| Our advice |
  Consider carefully why you are moving and prioritize options. Often, as the search for a property continues, budget range tends to rise and preferences shift. Just don't let it get out of hand.

The most commonly considered factors of a property include price, location, size, room arrangement, view, indoor sunlight exposure, roof deck, yard, or parking availability, condition, age, area schools, and permission to keep pets. Because it is nearly impossible to find a property that satisfies every detailed preference it becomes necessary to make some sacrifices. For example, to make up for a higher rent you may have to cut spending in other areas. Or you may have to settle with an otherwise perfect property that is just a little farther from a station than you would have preferred. Contemplate what you are willing to accommodate and what you are not.
 
   
     
Step 2 : Gather background information
  Tokyo is one of the biggest cities in the world. It can be extremely overwhelming to those new to the city. As with any new location, it is a wise idea to do a little research and get to know the city before beginning your search for a new property.  
 
| Searching for a property  |
 
  1. A traditional method of searching for a new property is looking through real estate company postings and advertisements. For those who know exactly what area or station they prefer, walking around, looking for homes on the market themselves is a rather time-consuming but very useful method, for it allows you to make observations yourself rather than having to rely on ads. However, this method must be used with caution, for the signs are not always taken down right away after being claimed by someone else.

  2. Look through real estate magazines. These directories sort properties by area, train stations and lines accessible, and price. However, there may be cases in which a property has already been signed by the time the directory is published. These directories can be picked up at bookstores and train stations.

  3. Internet search engines are a quick and easy way to look through listings. Many sites allow users to search under their conditions and sort by area or price. They often allow you to contact them through a request form in which you specify your preferences, or ask them to send you a floor plan and details of a property you are interested in.
 
 
| Market Value |
  Have an idea of approximate property value in the area you are looking through. Of course individual properties have different available amenities, ages, and distances from nearby stations, so similarly sized properties will differ in price. The only case in which real estate companies will be able to show you congruent prices is when they are part of a brand new establishment.

However, it is possible to familiarize yourself with an expected range. For example, a studio apartment of about 16sq.m should range from about \80,000 to \100,000 in rent and a 40sq.m 1LDK should range from about \200,000 to \220,000. Such approximations would be good to know so you know what to expect and understand if a property is valued, over or under-priced, or worth it to you. If a property seems unusually low-priced, there is probably a reason for it. Don't hesitate to find out what it is. In the real estate world, we encounter bargain prices here and there but rarely see shockingly low prices.

If upon searching, you find that property prices are not matching up to your expectations, you may need to take a step back and look over your listed conditions again. Are some preferences highly desirable, rare, and/or more highly priced than you expected?
 
 
| Our advice |
  It is a good idea to not stray too far from your original budget and conditions. It is natural to shift preferences a little, but changing too much and too often will get confusing and bring you farther from finding the perfect property. On the other extreme, it is advisable to keep more than just one ideal property in mind. Having your hopes set on just one property this early on in the process can either let you down or prevent you from seeing other potentials. If you are having much difficulty in finding a home that accommodates your requests, it may be necessary to narrow them down. Conversely, if you are too broad in your conditions and have too many choices to select from, go ahead and add more preferences.

If you find a property that is appealing enough that you are willing to consider it already, contact the company right away. But do this only if you are willing to cut your search short at this point before seeing other properties.
 
   
     
Step 3 : Find a real estate agent
   
| Real estate agencies |
  There is an infinite amount of real estate agencies to choose from. At any given station, there will always be at least two or three companies right there. The term "real estate agency" is broad. Among them are those that specialize in rentals, sales, offices, buildings, property lots, etc. In addition, there are those that handle a vast area and those that specialize in a limited area within a city. The former handles a whole city rather than specific wards or districts within, therefore offers properties in a wider variety of areas. These kinds of agencies tend to focus on brand new establishments and lots up for sale. The latter specializes in specific sections within a city and often works with apartments, condos, offices, and commercial use properties in their area. For those looking to rent within a specific ward or near a specific station, these agencies are most useful.  
 
| Contacting a realtor |
  Once you've determined a budget range, conditions, and done some background research, you are ready to contact a real estate agency to aid you. You can either go to the agency's office in person, call, or contact an office by e-mail or an online request form. Specify what kind of building, locations, price range, and preferences you have in mind, or name specific properties you are interested in.

When asking about a specific property, ask if it is still available and double-check whether it matches your expectations. If so, set up a date to go see it with an agent. Don't wait too long for somebody else may have their eye on the same property. It's also a good idea to have the agency (and you!) be on the lookout for other places that match your conditions.
 
 
| Filling out a request form |
  Real estate agencies have "request forms" in which you specify what kind of conditions you are searching under. You can fill these out at the realtor's office or often online. Once a real estate agency has an idea of what you are looking for, they can keep a lookout for properties that may interest you and call upon finding one. If you no longer need a company's services, do not hesitate to tell them so, simply say that you found a suitable place already or that you have quit searching.  
 
|@Our advice |
 

It is important to get accustomed to working with a real estate company and agent. Feel free to call more than one place or agent, just understand that calling too many will get confusing for you.

Be straightforward and open with an agent. The more precise an agent's understanding of your preferences, the better they will be able to help you.

Although it is important to voice all of your thoughts to a real estate agent, please remember that you will not find a property that matches every little request and detail painted in your mind. Make clear which conditions you must have, which you would really prefer if at all possible, and which would just be a nice accessory.

 
   
     
Step 4 : See for yourself
   
| Observing the actual property  |
  When you've found a property that you like on paper, the next step is to actually go see it. Is it what you expected it would be? For those who are concerned greatly with the condition, you can go to the site yourself before asking your agent and check it out. This is also advantageous if you place great emphasis on outward appearance and location.

Because being too picky will only make the process more difficult, neighborhood atmosphere, traffic conditions, and accessibility should probably hold lower emphasis at this stage. If you encounter a problem that you just cannot see yourself adhering to, then give up that property and continue searching for others.

To observe a property's interior, you must ask your real estate agent. Most properties presented will be in an unoccupied condition, but there are instances in which the previous occupant is still living there. There may also be cases in which the property is under construction or undergoing renovation. This case may call for some extra imagining and visualizing on your part. It is advisable to see the property during the day in order to see how much sun exposure there is. If possible, it is a better idea to bring every family member along. When planning on seeing more than one place in a day, allow at least half an hour for each.
 
 
| Checkpoints  |
 

Here are some checkpoints worth noting:

| Is everything as specified in the floor plan? There are cases in which the actual plan is slightly different than the floor plan implies.

| Is it spacious enough? Beware, empty rooms feel more crowded when filled. Will you be able to fit all of your furniture? Bring a measuring tape if you prefer to work with actual numbers.

| How much closet and storage space is available?

| Does sunlight reach indoors? For how longH Those that are very concerned with this point can bring a compass and check what directions the windows face. In Tokyo, buildings are tall and built close together, making it difficult to find properties with good indoor sunlight exposure. This is a key factor that many people look at.

| What amenities are available? Security features? Is there heat and air conditioning? Light fixtures?

| Is there a washing machine and ways to dry laundry? In Japan, people usually hang their laundry up outside to dry. Often, newer homes have "bathroom dryers" where there is a heating/ventilation system in the bathroom (which is separate from the W.C.). Laundry can be hung there to dry. Some other newer homes have dryer machines. Often, luxury apartments and condominiums do not allow residents to hang laundry outside.

| Do you have any floor or wall material preferences?

| How quiet is the building? What are the neighboring rooms used as? Family homes? Single occupancy homes? Offices?

| Is the entrance clean and appealing? Is the garbage maintained neatly?

| Is there a parking lot? If so, do you have a reserved space? Is it indoor or outdoor, included or a separate expense?

| What is the neighborhood atmosphere like? What factors do you consider important in choosing a neighborhood? What common facilities are available? How convenient will travel be and what stores will you be frequenting? Are they easily accessible?

| How far is the station? Ads use the quickest route to specify how long a walk is. Is that the route that will be the most convenient for you? If not, how long will your actual walk take?

| Will your children have to switch schools? Will you have to get a new telephone number?*

*In Japan, the first three numbers (or two in Tokyo's case) starting with a "0" is the area code for the prefecture. Tokyo's is "03." The next four numbers serve as a secondary area code. When moving within this area, there is no need to change phone numbers. For example, if your current phone number is (03) 3479-1751, and you are moving to a new home nearby that is located in the 3479-____ area, you can keep the same number. Otherwise, you will need to purchase a new number from the telephone company.

 
 
| Our advice  |
  Properties of good quality are sought after by numerous customers and tend to go off the market pretty quickly. If you spot a property that catches your attention, call your real estate agent ASAP. For those that are experienced in buying properties, or those that are in a rush, it may be a good idea to go to the agency and ask about it, and then ask the agent to take you to go see it right away.

When observing the property, the key is to imagine how you would set up your belongings. Where could you put your bed? Your TV? Fill up the empty room in your mind and decide if it is a space you can work with. Use our given checkpoints as an example and come up with your own list. Write it down and bring it with you.
 
   
     
Step 5 : Application
   
| Application Form  |
  If you are satisfied with a property after seeing it, you can ask your realtor to start the property application process. Please note that this is separate from the mortgage loan application. On a property application form, you are asked to specify such information as your current address, work address, annual income, the names of the occupants, the guarantor, etc. This form can either be filled out at the realtor's office, or on your own and faxed. Some agencies require the original application. In this case, you can first fax a copy then later deliver or mail the original.  
 
| Application fee |
  Upon signing the application, you must also pay an application fee. In the case that the property is claimed by someone else during the process or that the applicant does not pass the evaluation (see next section), the application fee will be returned to the client in full. However, if the applicant decides under his/her own circumstances to withdraw from the process, the return policy does not apply.  
 
| Evaluation |
 

Once a client fills out an application form, the information provided is processed and an evaluation of whether the client will be able to make the monthly payments is done. Generally such analyses are done by the real estate agent in contact with the client, but certain property owners may hire an outside party to conduct such evaluations. This usually takes one or two days. In most cases in which the client is denied, the reason is not given. If an evaluator finds an unclear point or has any questions you may be contacted.

 
 
| Guarantor |
  Besides corporations signing leases, applicants must have a guarantor. This is an individual who declares to pay any charges ensuing from said contract, in the case that the tenant cannot. For Japanese, the guarantor must be a parent, sibling, or other relative. For non-Japanese, the guarantor must be a Japanese citizen.  
 
| Required documents |
 

The following are documents required during the evaluation. However, this is just a general list; individual realtors and evaluators may have slightly different lists.

  • Property application form
  • Passport (a copy)
  • Certificate of alien registration
  • Resident registration card
  • Certificate of place of employment
  • Record of annual income
 
 
| Negotiating |
  Applicants that have set conditions to be negotiated will be contacted with the result during the early stage of the evaluation process. If the conditions have been agreed to, the process may be continued. However, if the lessor does not agree or sets forth new conditions, the real estate agency will contact you and relay the message. If you decide not to meet the new conditions and call the deal off, the process is dropped, and the application fee is returned. If you originally start the application process without negotiation conditions, add them in later, and then get denied, the application fee will most likely not be returned.  
 
| Numerous applicants |
  For properties that are in high demand or at a bargain price, there may be more than one applicant at a time. In this case, rather than rewarding the first interested applicant, all applications are processed and evaluated simultaneously. In such a case, it does become a disadvantage to have conditions and negotiation requests. The identity of the final applicant to earn the property and the reason for it is not disclosed to other applicants.  
 
| Interview |
  Certain owners may prefer to meet their applicants during the evaluation process. This is common among luxury residential buildings and commercial property deals, but recently, there have been a rising number of common homeowners that require this. Often, the owner just wants to ask questions or explain certain points to the client directly. We recommend that you anticipate this and be prepared. If required to meet the owner, be prepared, calm, and look presentable, but avoid ostentatious clothing, hairdos, and makeup.  
 
| Our advice |
  It is first important to understand when is the right time to start the application process. It may be a good idea to go through with it if the property meets 70~80% of your conditions (listed in Step 1). You will rarely find a property that satisfies over 90% of your conditions. For those that have the time to spare and wish to continue searching, by all means do so until you find the perfect property.

Although the application does not bind you to the property, act as though it does; start the process only if you are committed to ultimately signing the lease. Set clear any points that you do not understand, ask any questions you may have before signing this form. If for whatever reason the process is cut off at this point, whether it be because the property has been claimed by some other party, or because you are denied at the evaluation stage, as disappointing as it may be, the key is to get over this and move on, for there are other properties out there that you should be looking at.

Though obvious, it is very important to tell the truth on an application form; the details will be checked. Include any comments or explanations that may be helpful to the evaluator. If you are in between jobs or work only part-time jobs, specify this on the application.
 
   
 
Step 6 : Signing the Lease Agreement
   
| The lease |
 

If cleared through the evaluation process, you are ready to sign the agreement! This is done at the realtor's office or the owner's office. It is much more common to arrange and sign leases with the realtor, rather than with the owner. If it is possible to do so without inconveniencing anyone, this is done during the day and takes less than an hour. Remember to bring necessary documents and payments.

Ideally, the guarantor should be present, but in some cases, if the guarantor contract is presented they may be exempt.

 
 
| Payments due this day |
 

Upon signing the lease, you must make certain payments. This includes:

|Key money* (usually 2 months' worth of rent)

|Security deposit (usually 2-3 months' worth of rent)

|Advance rent (the next full month's plus portion of current month's owed)

|Fire insurance (around \20,000)

Additionally there is the brokerage fee, which is one month's rent plus tax, so in total, the amount you pay on this day is about 6 months' rent's worth.

*"Key money" is an additional non-refundable fee awarded to the owner. In Japanese, it is literally called "gratitude fee." This practice originated when Tokyo was in the state of being reconstructed after destruction from the war. Suitable lodging was extremely rare and in exchange for a host's hospitality, tenants would offer a "gratitude fee". The tradition today has taken the form of a common fee.

Although recently there have been TV commercials boasting the abolishment of the key money fee, unfortunately this policy does not apply to the Shibuya or Minato-ku areas. Some luxury residences directed towards expats may have "no gratitude fee" policies.

 
 
| Explanatory note of important items |
 

At this time, you should receive the explanatory note of important items. Recorded in this document are the following:

  1. Real estate agent and license number, agency and contact info
  2. Property address, room number, size, current condition
  3. Landlord's name and contact info
  4. Real estate agency's stance (e.g. broker)
  5. Lease agreement duration, rent, renewal terms
  6. Property use and occupants' info
  7. Rent due dates and payment methods
  8. Utility company information
  9. Lease termination conditions
  10. Rules and regulations
  11. Conditions regarding property damage
  12. Building management info

This document contains very important information and should be held onto carefully.
If you come across any unclear meanings, ask about it right away.

 
 
| Lease Agreement  |
  Recorded in this document are the property name, room number, lease duration and rent. Also listed are the lessor, lessee, guarantor, and realtor info. This document contains such general information and hardly differs in its contents from one realtor to another.  
 
| Insurance |
  The real estate company at this time will ask the client to apply for fire insurance. The policy usually comes in 2-year intervals, and is applied for to cover the whole leasing period. This policy also provides coverage for flooding, robbery, and  
 
| Key |
 

After the lease is signed, the key is handed over to the new occupant. The key must be returned at the end of the term so be careful not to lose it. Tenants of buildings with front door locks and electronically powered systems should pay extra caution for these systems are quite expensive to replace.

If a key becomes lost, it may be a good idea to contact the realtor/landlord and change the locks.* A tenant may not change the locks or add another one without first consulting the owner.

*Contact the realtor if you have just recently moved in. Contact the landlord if you have been situated there for a while.

 
 
| Final check before moving in |
  After receiving the key, inspect the place one final time before moving in. Any damage, stain, etc. must be reported before moving in. Upon discovery, contact your realtor.  
 
| Our advice |
  Information provided in the explanatory note of important items and the lease are important and it is mandatory that a tenant fully comprehend it. If problems arise in the future, a simple "I did not know" or "I was never told" will not suffice, if the topic is covered in the documents. Often, the terms used in these documents are technical and difficult to understand. Have your realtor or the owner go over it with you until you have a good grasp. If you find contradictions between this document and previously made agreements, get them straightened out before finalizing the lease.  
   
   
Step 7 : Moving
   
| Movers |
  Besides those who prefer to move themselves, the next task is to hire a mover. Real estate agencies can refer movers, or you can look them up in a phone book and compare prices. Movers can offer a variety of services including packing, moving, and arranging furniture for their customers. Leaving everything up to a mover can get costly. Choosing to take on some tasks yourself, for example packing and unpacking, can greatly reduce such costs. This is the most common approach people take when moving.

There is a smaller, cheaper kind of moving service available in Japan called "akabou." One driver comes to help the customer move. In exchange for a much smaller rate however, if you choose this service you must actively carry and move your belongings, too, rather than fully relying on the akabou. It is most convenient to use this service when moving a small amount of belongings.
 
 
| Moving in |
 

Once you've decided on a move-in date and mover, there are other tasks that need attending to. Get carpets and curtains installed and call the water, gas, electric, and telephone companies and have the services turned on.

When moving into a building, contact the management office and let them know when you will be getting there. In many cases, buildings must take certain precautions to protect the hallways and elevators from damage. If you've hired a moving company, they may have arranged it already, but if not, you must find out who needs to be contacted.

 
 
| Getting settled in |
  Finally, it is time to get settled in! Learn what public services are available, explore the area, and meet the neighbors.  
 
| Our advice |
  When packing up belongings, consider what is really necessary and what can be done without. Will there be enough room and storage space for everything you are trying to bring? Any curtains and accessories that were meant for your old room can be left behind.  
   
     






























 

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