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Omotesando
Sta. 5min.
Gaienmae Sta. 2min.
2,7,8F AoyamaYasuda bldg.
2-27-22 Minami-aoyama
Minato-ku Tokyo Map |
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Step 1 : Decide
your criteria
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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. |
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| Deciding a budget |
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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). |
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| Location / nearby stations |
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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. |
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| Building type |
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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.
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| Size / room arrangement |
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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)
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| Others |
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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. |
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| Our advice |
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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. |
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Step 2 : Gather
background information
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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.
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| Searching for a property
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- 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.
- 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.
- 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.
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| Market Value |
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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? |
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| Our advice |
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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. |
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Step 3 : Find
a real estate agent
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| Real estate agencies |
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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. |
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| Contacting a realtor |
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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. |
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| Filling out a request
form |
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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. |
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|@Our advice |
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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.
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Step 4 : See
for yourself
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| Observing the actual
property |
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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. |
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| Checkpoints |
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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 longH 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.
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| Our advice |
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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. |
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Step 5 : Application
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| Application Form |
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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. |
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| Application fee |
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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. |
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| Evaluation |
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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.
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| Guarantor |
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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. |
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| Required documents |
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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
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| Negotiating |
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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. |
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| Numerous applicants |
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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. |
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| Interview |
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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. |
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| Our advice |
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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. |
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Step 6 : Signing
the Lease Agreement
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| The lease |
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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.
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| Payments due this day |
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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.
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| Explanatory note of important
items |
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At this time, you should receive the explanatory
note of important items. Recorded in this document are the following:
- Real estate agent and license number, agency and contact
info
- Property address, room number, size, current condition
- Landlord's name and contact info
- Real estate agency's stance (e.g. broker)
- Lease agreement duration, rent, renewal terms
- Property use and occupants' info
- Rent due dates and payment methods
- Utility company information
- Lease termination conditions
- Rules and regulations
- Conditions regarding property damage
- 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.
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| Lease Agreement |
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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. |
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| Insurance |
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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 |
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| Key |
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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.
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| Final check before moving
in |
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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. |
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| Our advice |
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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. |
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Step 7 : Moving
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| Movers |
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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. |
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| Moving in |
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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.
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| Getting settled in |
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Finally, it is time to get settled
in! Learn what public services are available, explore the area,
and meet the neighbors. |
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| Our advice |
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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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