Renting an Apartment in Japan - Assignment Example

Be prepared to put down about five to seven month’s worth of rent up front. This is standard. The deposit is composed of the following: • Reservation fee (tetsukekin) – 1 month’s rent paid when the tenant applies for an apartment and before the contract is signed. After the contract is signed, the money is included as part of the deposit. • Security Deposit (shikikin) – 2 to 3 months’ rent used to cover eventual damage to the apartment or unpaid rents and fees. It is seldom that this is refunded in full (alterations to the property are one of the thorniest issues between landlords and tenants).

It is refunded without interest. • Key money (reikin) – 1 to 2 months’ rent a “gift” to the house owner when making a contract and is not refundable • Advance rent – 1 month’s rent the rent should be paid before the start of the month Fourth,If you are a foreignor, be sure to have a guarantor and proper identification. (Passports and Non-japanise licences are useless). A guarantor is also required before a contract is signed. Usually, it is the tenant’s company or a wealthy Japanese.

The guarantor takes the responsibility if the tenant is unable to pay the rent or room expenses. ("Japanese landlords get key money")One of the very real obstacles is that many landlords will simply refuse to rent to foreigners, even if they speak Japanese fluently and can make all arrangements in Japanese. I've heard many different excuses for this, such as ''The landlord can't speak English,'' ''Foreigners have loud parties,''. ''Foreigners' food smells different and the neighbors might be bothered by it,'' (Jay).

Japanese use the phrase hikoshi-bimbo to describe someone who recently moved into a new apartment. Literally translating as 'moving poor,' hikoshi-bimbo describes the state of having to fork over six months' salary for the privilege of renting a new apartment. (Renting an Apartment in Japan) Fifth: Register your new address with local authorities at the local city hall or ward office. They will write the new address information on the back of your Alien Registration Card. A word of warning on finding your apartment.

Don't be hasty in selecting your apartment. Take your time and make a good selection. Paying key money once is pretty tough, paying twice is a financial disaster. Sixth: Don't expect the rental contract to be in English, so bring a Japanese friend to help you with understanding its terms and conditions. Seventh: If you're making a higher salary, you may save on taxes by arranging for your employer to pay your rent as a "housing allowance." US citizens working in Japan are allowed to receive very generous housing allowances which are not counted as income for US tax purposes.

Check the IRS website or talk to your lawyer or accountant. (Jay) Eighth: If you get an indefinite term for your lease, your landlord has almost no way to kick you out so long as you are paying your rent.