Renting in Japan as a Foreigner: Hidden Costs, Rejections and Why Buying Can Be Better

For many expats moving to Tokyo, Osaka, or Kyoto, the excitement of renting in Japan as a foreigner quickly meets a frustrating reality: the residential rental market. Between non-refundable fees, confusing floor plans and landlords who refuse foreign tenants, it can feel as if the system works against you. Even figuring out how much living space you actually get takes a small Japanese apartment size calculator in your head.

Before you commit to a lease, it helps to understand Japan’s latest visa and residency rules, since your status shapes how long you can stay and what you are allowed to rent.

Settling into a new home often means a run of first shops. For families, our guide on shopping for a baby in Tokyo points you to the best stores for clothes, food and essentials.

If you come from Western Europe, North America, or Oceania, you probably expect a rental market built on consumer rights and transparency. In Switzerland, Germany, or the UK, a rental agreement is a fairly balanced contract. In Japan, the upfront costs and contract terms clearly favor landlords and real estate agencies, and tenants have much less negotiating power.

Many locals accept this as normal because it is the only system they know. But if you have rented abroad, handing over months of non-refundable key money just to sign a lease feels very unusual.

In this guide, I break down every part of the process that caught me off guard: rejections, floor plans, upfront fees, renewal costs, moving out and the NHK visit. I also compare the long-term numbers of buying property in Japan vs renting, and explain why, for people staying long-term, buying can be the better choice.

The Nationality Wall: How Often Foreigners Get Rejected

When you begin searching for an apartment in Japan, you are hit with a harsh reality before you even step foot inside an agency: your passport and your background dictate your housing options.

In many countries, refusing to rent to someone because of their nationality or ethnicity is illegal. In Japan, there is no law that explicitly bans it, and rejecting foreign tenants is still a common practice.

The Data Behind Rental Discrimination in Japan

Agencies usually explain landlords’ reluctance with “language barriers” or worries about garbage rules, but the numbers show how widespread the problem is:

• The Ministry of Justice Survey: In a large survey of foreign residents by Japan’s Ministry of Justice, nearly 40% of those who had looked for housing said they had been rejected because they were foreign.
• The Invisible Filter: The survey only counts people who were told “no” directly. Many listings are filtered out before you ever see them, because landlords instruct agents not to accept foreign tenants (外国人NG, gaikokujin NG). The real share of the market that is closed to you is therefore much larger than the survey suggests.

The Reality of Renting in Japan as a Foreigner: The Foreigner Premium

Because a large part of the standard market is closed to you without a Japanese passport or fluent Japanese, you are funneled into a narrow sub-market of “foreigner-friendly” real estate agencies.

The most reliable way around this wall is fluent Japanese. If you have a Japanese-speaking partner, like my fiancée, who can handle all communication, you get access to far more of the regular market. Without fluent Japanese, you mostly depend on agencies that specialize in foreign tenants.

These specialized agencies operate as a secondary filter, showing you a microscopic subset of properties characterized by structural disadvantages.

1. Overpriced: Landlords who accept foreigners know there is less competition and often charge higher rent.
2. Substandard: Listings that have sat vacant on the Japanese market for months or years due to poor location, lack of sunlight, or aging infrastructure are more likely to be offered to foreign tenants.
3. More Expensive Extras: These properties often come with English-speaking guarantor companies that charge more than the usual rate.

Deciphering Japanese Layout Codes & “Tatami” Math

Once an agent finally finds a handful of apartments willing to tolerate a foreign tenant, you are presented with Japanese floor plans that look like a jumble of random letters and numbers: 1K, 1DK, 1LDK, or 2DK.

Once you finally get the keys, the next challenge is furnishing a small Japanese apartment on a budget. If you are not sure where to start, see my guide to the best furniture stores in Tokyo, comparing MUJI, Nitori and IKEA on price, delivery and assembly.

For a foreigner used to counting bedrooms or looking at clean square meters, these codes require structural translation:

• L (Living Room): A dedicated area meant for lounge furniture, a couch, and entertainment.
• D (Dining Room): A designated space large enough to fit a dining table and chairs.
• K (Kitchen): The food preparation zone, which can range from a full room to a literal hotplate built into a hallway.

Decoding the Classifications

The difference between a 1K, a 1DK, and a 1LDK is not the number of bedrooms (all of them have exactly one bedroom). The difference lies entirely in the square footage of the common area attached to the kitchen:

• 1K: One bedroom where the kitchen is squeezed into the entryway corridor. The door to your bedroom separates you from the stove.
• 1DK: One bedroom plus a hybrid dining/kitchen space. The kitchen area is large enough to fit a small table with two chairs, but not a sofa.
• 1LDK: The holy grail of single or couple apartments. One dedicated bedroom plus a large, unified living/dining/kitchen room.

The Confusing System of Tatami Mat (Jo) Measurements

Instead of using internationally standardized square meters (m²) or square feet (sq ft) for individual rooms, Japanese real estate relies heavily on Jo (畳), which represents the size of a single traditional straw tatami mat.

From an international perspective, using a traditional floor mat as a unit of modern room size is confusing. To make matters worse, there is no single standard size for a tatami mat.

A tatami mat changes dimensions depending on the region of Japan you are in:

• Kyoma (Kyoto/Western Japan): The largest mats, measuring roughly 1.91 meters by 0.95 meters, which equals 1.82 square meters.
• Ainoma (Chubu region): Mid-sized mats, measuring roughly 1.82 meters by 0.91 meters, which equals 1.65 square meters.
• Edoma (Tokyo/Eastern Japan): The smallest traditional mats, measuring roughly 1.76 meters by 0.88 meters, which equals 1.54 square meters.
• Danchi-ma (Public Housing): Microscopic mats used in modern apartment complexes to make tiny rooms look larger on paper, often measuring as small as 1.40 square meters.

Because of this, a “6-mat room” in Tokyo can be noticeably smaller than a “6-mat room” in Kyoto. Real estate ads are supposed to count at least 1.62 m² per mat, but older buildings and public housing (danchi) often use smaller mats, so the mat count alone can make a room look more spacious than it is.

To bypass this confusion, most agencies will also display the total size in exact square meters on the listing. However, you still have to look closely at how that number is used. Landlords will cleverly maximize the room’s mat count on the visual floor plan while relying on the official square meter total to stay legally compliant. This means a room can look big and roomy on the drawing, but when you check the actual square meters, you realize a huge chunk of that number is being stolen by the entryway, thick concrete walls, and the bathroom unit. Always ignore the mat count and check only the official square meters to know exactly what you are paying for.

Ultimate Japanese Apartment Size Conversion Table

To compare floor plans properly, use this conversion table, based on the real estate standard where 1 tatami mat counts as at least 1.62 square meters:

Floor Area: How Japan Counts Square Meters vs. the Swiss System

When a Japanese real estate listing states that an apartment is 40 square meters, you would naturally assume you are getting 40 square meters of usable, comfortable space. You would be wrong.

Different countries have different rules for what counts as living space. Compared with a highly regulated European system, like Switzerland’s SIA standards, the Japanese way of counting makes apartments look bigger on paper than they feel in reality.

What is Counted? Japan vs. Switzerland

To understand why a Japanese apartment always feels half the size of an equivalent European apartment, you must look at how the total area is calculated:

Because Japan includes the thickness of the internal structural walls and the entirety of tiny bathroom units inside the advertised square meters, a 30 square meter Tokyo apartment often has less than 22 square meters of actual, walkable floor space.

The Empty Apartment Problem: How Viewings Work in Japan

Once you select a few properties to view, you get to know the Japanese viewing process.

In many Western countries, agents use key boxes or arrange viewings with the current tenants. In Japan, the process is often slower and less flexible.

Waiting for the Company Car

When it is time to see the apartments, the agent usually drives you there in a company car. In my experience, you often wait in the office for a while first, because several agents share just one or two cars.

Meanwhile, your agent makes call after call to find out where the keys are and whether the apartment can be viewed.

Viewing Empty Apartments

When you finally arrive, the apartment is completely empty, and often without electricity.

The Vacancy Visual Gap: Japan vs. Switzerland

In Japan, apartments are completely cleared out before anyone can view them. Partly because upfront moving costs are so high (see below), many apartments stay vacant for months. During that time, dust builds up, drain traps can dry out and cause odors, and the apartment looks worse than it will once it is lived in.

Why the Swiss System Wins

Compare this to the Swiss or German system. In Switzerland, you tour an apartment while the current tenant is still living there.

This has clear advantages:

1. True Assessment: You can see how furniture actually fits into the space. You can tell if the heating works, if the apartment feels alive, and how the acoustics function.
2. No Double Cleaning: The outgoing tenant is contractually obligated to hand over a professionally cleaned apartment directly to the incoming tenant. There is no dead gap.
3. No Subsidy Fees: Because the apartment is continuously occupied, the landlord never loses a single day of rental income. In Japan, because properties sit empty for months, landlords recoup that lost income through upfront fees such as key money.

Breaking Down the Upfront Fees

The biggest shock for most foreigners is how much money you need upfront. In many countries, you pay a refundable deposit and the first month’s rent. In Japan, you also pay several non-refundable fees.

To move into an apartment costing ¥100,000 per month, you will regularly be forced to pay between ¥500,000 and ¥600,000 upfront. Here is exactly where that money goes:

Upfront Cost Breakdown for a ¥100,000/Month Apartment

Key Money (Reikin / 礼金): The “Thank You” Fee

Key money is a non-refundable cash payment given directly to the landlord as a “gift” to express your deep gratitude for being allowed to rent their property. It usually ranges from one to two months’ rent.

The custom is often traced back to the post-war housing shortage, when tenants paid landlords extra to secure a place. Today, with millions of vacant homes (akiya) across Japan, it is hard to justify. You receive no service in return: it is simply extra income for the landlord. The good news is that more and more listings now come with zero key money.

Deposit (Shikikin / 敷金), The Guaranteed Deduction Trap

The security deposit is meant to cover damage beyond normal wear and tear. In practice, many contracts use it to cover a fixed cleaning fee and other move-out costs, so do not expect to get all of it back.

Most contracts include a clause that deducts a fixed cleaning fee from your deposit, no matter how clean you leave the apartment. Some landlords also try to charge for replacing wallpaper, sun-faded tatami mats or small floor scratches, which usually count as normal wear and tear. Japan’s official guidelines on restoring apartments (genjō kaifuku) say tenants should not pay for normal wear, so it is worth knowing them and questioning unclear charges.

The Guarantor Company Fee (保証会社料): The Foreigner Tax

In the past, a Japanese friend or employer could sign as your personal guarantor. Today, most landlords require a corporate guarantor company instead, especially for foreign tenants. These companies usually charge 50% to 100% of one month’s rent upfront, plus a yearly renewal fee of around ¥10,000. Their service protects the landlord, not you.

The Lock-Changing Fee (Kagikae-dai / 鍵交換代)

Landlords charge around ¥15,000 to ¥30,000 to change the lock before you move in. It is a reasonable safety measure, but as a tenant, you have no easy way to check whether a new cylinder was actually installed. It is worth asking which lock type is being installed, or whether the fee can be waived.

Moving Out: How to Handle the Cleaning Fee

Because most contracts include a fixed cleaning fee, moving out in Japan works differently from what many Europeans are used to.

In Switzerland or Germany, you are expected to deep-clean your apartment before handing over the keys. In Japan, this is usually unnecessary.

The Gold Rule: Do Not Clean Your Apartment

When you move out of a Japanese apartment, you do not need to deep-clean it.

Most contracts already include a fixed professional cleaning fee (typically ¥30,000 to ¥60,000, depending on the size). Whether you leave the apartment spotless or just tidy, the same amount is deducted from your deposit.

Even if you spend two days scrubbing the bathroom, the landlord will still send in a professional cleaning company.

The Maximum Effort Required:

1. Remove All Trash: Do not leave large furniture or personal belongings behind, as disposal fees can be very high.
2. Run a Quick Vacuum: Spend exactly 10 minutes running a vacuum over the floor so there are no massive dust bunnies when you do the final walk-through with the agent.
3. Wipe the Counters: Do a simple surface wipe.

Hand over the keys, and accept that the cleaning fee is part of the cost of renting in Japan.

Post-Move Bureaucracy: The Utility Gaps and the Infamous NHK Man

The surprises do not end once you get the keys. Setting up your new home comes with a few outdated processes and the well-known NHK visit.

The Post-Move Onboarding Timeline

The NHK Contract: Once You Sign, It Is Hard to Cancel

A visit from an NHK (Japan Broadcasting Corporation) collector is a rite of passage for new residents in Japan. Collectors often visit shortly after people move in, and many new arrivals mistake them for official city workers.

Understanding how these visits work helps you protect your wallet:

• The Lifetime Commitment Trap: Once you sign an NHK contract, cancelling it is notoriously difficult. You generally have to prove that you no longer own any TV-receiving equipment. Never sign just to make the collector leave.
• What the Law Actually Says: Under the Broadcasting Act, every household with TV-receiving equipment must sign a contract with NHK, and since a 2017 Supreme Court ruling, NHK can take TV owners to court to enforce this. If you do not own a TV, you have no obligation to sign.
• The Pressure Tactics: Collectors are contractors, not government officials, and they are known for high-pressure tactics, especially with new arrivals. Stay calm, do not argue, and do not sign anything you have not read.

The Inefficient Utility Activation Process

In Western Europe, when you move into a new place, the electricity and gas are already flowing; you simply read the meter numbers, submit them online, and register your name to the billing account.

In Japan, utilities are completely cut off at the main valves. You must coordinate separate appointments with the electricity provider and the gas company. For the gas line safety check, you are legally required to sit inside the empty apartment for a half-day window waiting for a technician to physically walk into your kitchen, light the burner, and hand you a paper clip-board to sign. If you move in during the dead of winter or peak summer, you will spend your first 24 to 48 hours shivering or sweating in a hollow apartment with no climate control.

What to Do When the NHK Collector Knocks

• You do not have to let him in or sign anything on the doorstep. Talk through the intercom if you prefer.
• If you do not own a TV (or a car navigation system that receives TV), say so politely and close the door. Without a TV, you are not required to sign a contract.
• If you do own a TV, the law does require you to sign a contract. Take the paperwork, read it in your own time, and sign up yourself instead of under pressure at the door.

The Renewal Fee and Why the System Favors Landlords

After about two years, your lease is up for renewal. In many countries, a good tenant who pays on time can simply extend the lease.

In Japan, renewing usually comes with another invoice: the Renewal Fee (Koshin-ryo / 更新料).

Paying to Stay in Your Own Home

Every 1 to 2 years, the agency sends you a renewal package. To stay, you typically pay around 1 month’s rent as a renewal fee (sometimes more), plus a processing fee to the agency (usually around ¥10,000 to ¥20,000). Renewal fees are most common in Tokyo and the surrounding area and less common in other regions.

The 2-Year Rental Cost Spike (Based on ¥100,000/Month Rent)

Detailed Bill Breakdown for Month 24

If you do not pay the renewal fee, the landlord can refuse to renew the contract. Combined with the upfront fees, this makes long-term renting in Japan expensive, and every move starts the cycle again.

Why the Market Works This Way

The Japanese rental system is pro-landlord in costs, but pro-tenant in eviction law. Landlords cannot easily evict a tenant who pays rent, but they control the upfront pricing. Because many of these fees are long-standing customs, there has been little pressure to change them, although zero-key-money listings are slowly becoming more common.

Before You Give Up: UR Housing and Zero-Key-Money Apartments

There is one legal way around most of these fees that surprisingly few foreigners know about: UR housing (UR賃貸住宅), run by the government-affiliated Urban Renaissance Agency.

• No key money (reikin)
• No agency commission, because you rent directly from UR
• No renewal fee (koshin-ryo)
• No guarantor or guarantor company required
• Open to foreign residents with a valid residence status who meet the income requirements

The apartments are often in older buildings and not always in the most central locations, but for many expats UR is the easiest way to avoid both the nationality filter and the upfront fees.

You will also find so-called zero-zero apartments (敷金礼金ゼロ) on regular listing sites, with no deposit and no key money. Read the contract carefully: they often make up for it with higher cleaning fees or penalties if you move out within the first year.

The Ultimate Solution: Why You Should Stop Renting and Buy Property in Japan

When you add up the rejections, the non-refundable key money, the renewal fees and the move-out deductions, renting long-term in Japan as a foreigner is a significant financial cost.

This is why an increasing number of expats are choosing a completely different path: buying a house or an apartment in Japan.

The Surprising Truth About Buying Property in Japan

To a foreigner coming from Europe or North America, the idea of buying real estate in a foreign nation sounds impossibly complex and reserved only for the ultra-wealthy. In Japan, the reality is completely flipped. The barriers to entry for buying property are significantly lower than the barriers to renting.

Here is why buying property in Japan blows the rental market completely out of the water:

Permanent Residence Is Not Required to Buy

Unlike many Asian nations where foreigners face extreme legal restrictions on owning land or freehold property, Japan has zero legal restrictions on foreigners buying real estate. You do not need a Japanese passport, you do not need permanent residency (PR), and you do not even need a long-term visa to legally purchase and own freehold land and buildings in your own name.

Historic Low Interest Rates & Incredible Financing

Japanese mortgage rates are still low by international standards, although they have been rising since the Bank of Japan ended its negative interest rate policy in 2024. The catch for foreigners: most banks require permanent residency (or a Japanese spouse) before they offer a mortgage. Without PR, your options are limited to a few lenders, usually with a larger down payment and a higher rate.

Depending on the area and the property, a monthly mortgage payment can be comparable to, or even lower than, the rent for a much smaller apartment in the same ward.

Complete Freedom from the Rental Filter

When you buy a home, you are in control. No landlord can reject you because of your nationality, there is no guarantor company, no renewal fee and no lock-changing fee.

Building Equity vs. Sinking Cash

When you pay rent, the money is gone. When you pay a mortgage, part of every payment builds equity. Buildings in Japan lose value quickly, but owning the land in a good location like Tokyo or Osaka can be a solid long-term asset.

The Rent vs. Buy Financial Roadmap (5-Year Projection)

How much should you budget in total? I break down rent, utilities, food, insurance and sample budgets in the cost of living in Tokyo.

Renting in Japan FAQ

The Verdict: Is Renting Worth It Long-Term?

The Japanese rental market is expensive and not very transparent, especially for foreigners. If you are used to a more balanced housing market, many of its fees will feel unfair.

If you plan to stay in Japan for more than three years and qualify for a mortgage, it is worth seriously comparing buying with renting. For many long-term residents, buying can be the better financial choice and saves you from landlord rejections and renewal fees.

My Final Take: Is the System Broken?

If you ask local real estate agents, many will defend the system. They will tell you that key money is simply tradition, that renewal fees are normal and that landlords only want to avoid misunderstandings with tenants who do not speak Japanese.

From my perspective, it is an outdated system that protects property owners’ income at the expense of tenants.

Coming from Switzerland, where tenant rights are strong and the process is transparent, renting in Japan was one of the most frustrating parts of building a life here.

The biggest lesson my fiancée and I learned: if you are staying long-term, it is worth looking beyond renting.

Unless you have a fluent Japanese partner who can handle the process for you, like my fiancée does for me, renting as an international resident will often feel like an uphill battle. If you are committed to living in Japan long-term, look into UR housing or buying your own place. Becoming your own landlord is not only a smarter financial plan, it also gives you peace of mind.

Once you have an apartment, the paperwork starts: my administrative guide to moving to Tokyo and my explainer on the My Number Card walk you through it.