Renting in Japan: A Practical Housing Guide for Entrepreneurs (2025 Update)

If you are starting a business in Japan, there is one major headache besides company formation and visa paperwork: finding a place to live.

Whether you have just received your Business Manager Visa and are preparing to move to Japan, or you are already in Japan and need to relocate, renting can be far more difficult for foreigners than most people expect. This guide explains the costs, process, common pitfalls, and practical strategies from an entrepreneur’s perspective.

Why Renting in Japan Is Difficult: The Reality Foreigners Face

The short version is simple: Japan’s rental market is not especially foreigner-friendly. That is not just about prejudice. It is also a structural issue in how the market works.

Foreigners Not Accepted (外国人拒否)

Even today, some rental listings in Japan effectively say “no foreigners.” Landlords are free to choose tenants, and many landlords, especially individual owners, openly refuse foreign applicants. The stated reasons vary: language concerns, differences in lifestyle, worries about move-out disputes. In practice, it usually comes down to not wanting extra complications.

According to real estate industry surveys, roughly 20% to 30% of rental properties come with some form of restriction on foreign tenants. In high-demand areas, the figure can be even higher. Many foreigners in Japan have had the same experience: you find an apartment you like on SUUMO, contact the agent, and then hear, “Foreign nationals are not accepted” (外国籍の方はお断り).

Practical response: Instead of fighting the market, focus your energy on listings that are explicitly open to foreign tenants. We will cover where to find them below.

Guarantors and Rent Guarantee Companies

In Japan, renting traditionally requires a joint guarantor (連帯保証人, rentai hoshonin). That person is expected to be Japanese or a permanent resident, have stable income, and be willing to cover your obligations if you stop paying rent.

For most foreigners, especially new arrivals, finding someone like that is nearly impossible.

The good news is that many properties now accept a rent guarantee company (保証会社, hoshou gaisha) instead of a personal guarantor. You pay a fee, and the company acts as your guarantor. This is now the mainstream arrangement, and we will cover the cost in the fee section below.

Visa Status and Income Screening

Landlords and property management companies will usually review your status of residence (在留資格, zairyuu shikaku) and your remaining period of stay. Business Manager Visa holders often face two specific concerns:

Short period of stay: First-time approvals are often issued for only one year. If your visa is close to expiration, landlords may see that as a risk.
Unstable income: Entrepreneurs do not have the predictable monthly salary of a regular employee. Telling a landlord “I am the company president” does not necessarily reassure them. In some cases, it makes them more cautious.

As a rule of thumb, screening often expects monthly income of at least three times the rent. That can be a challenge early in your business. There are ways around it, and we will get to those later.

The Cost Structure of Renting in Japan

Japan is famous for high upfront rental costs. If you are used to markets where you only pay a deposit and first month’s rent, prepare for a very different system.

Typical Upfront Costs

Item	Typical Amount (based on monthly rent)	Notes
Security deposit (敷金, shikikin)	1-2 months	Refunded after deductions for damage/repairs
Key money (礼金, reikin)	0-2 months	Non-refundable “thank-you” payment to the landlord
Agent fee (仲介手数料, chuukai tesuuryou)	0.5-1 month + tax	Paid to the real estate agency
Fire insurance (火災保険, kasai hoken)	JPY 15,000-25,000	Usually mandatory for a 2-year term
Guarantee company fee	0.5-1 month	Initial fee, with annual renewal afterward
Lock change fee (鍵交換費, kagi koukanhi)	JPY 15,000-25,000	Required for some properties
Advance rent	1-1.5 months	Prorated current month + next month’s rent
Cleaning fee (クリーニング費)	JPY 30,000-50,000	Charged upfront for some properties

Typical total: If the monthly rent is JPY 100,000, upfront costs are often around JPY 450,000 to JPY 650,000, or roughly 4.5 to 6.5 months of rent.

Yes, that means you may need to pay the equivalent of half a year’s rent before moving in. For many people arriving in Japan, this is one of the biggest early cash flow pressures.

About Key Money

Key money is one of Japan’s more unusual rental customs: you pay the landlord a non-refundable fee simply for the privilege of renting the property. It sounds strange, but it remains part of the system.

The good news is that zero key money properties have become more common in recent years, especially in competitive markets. Filtering for listings marked 礼金なし can save you a substantial amount.

Ongoing Monthly Costs

In addition to rent itself, you may also pay:

Management/common area fee (管理費 / 共益費, kanrihi / kyouekihi): usually JPY 3,000-15,000
Annual guarantee company renewal fee: usually JPY 10,000-20,000 per year
Internet fee: if not included, around JPY 4,000-5,000 per month

When you view a property, confirm the combined total of rent plus management fee. Some listings look cheap on paper because the rent is low, but the management fee is high.

Special Considerations for Entrepreneurs

As an entrepreneur, your housing needs are different from those of a salaried employee. You are not just thinking about where to live. You also have to think about your company address.

Using Your Home as Your Office (自宅兼事務所, jitaku-ken-jimusho)

Many entrepreneurs in the early stage consider using their home as an office. The appeal is obvious.

Advantages:

You save the cost of separate office rent
Your commute is effectively zero
Part of the rent may be booked as a business expense based on the ratio of business use; see our Japan tax basics guide

Disadvantages:

Many residential leases prohibit commercial use under the contract
Even if the landlord agrees, the building management association may not
Once you register the address as your company address, it appears on the corporate registry and is publicly searchable
At visa renewal, Immigration may question whether your business has a genuine operating presence

Important: If you want to use your residential address as your registered company address, you should obtain the landlord’s written consent in advance. If you register it without permission and the landlord finds out, termination is possible.

Business Manager Visa Requirements for Office Space

For entrepreneurs on a Business Manager Visa, Immigration has clear expectations for office space:

There must be an independent space used exclusively for the business
If the premises are partly residential, the living area and work area must be clearly separated
A virtual office may not be accepted in some cases

For a fuller explanation of address requirements at the time of company setup, see our complete guide to setting up a company in Japan.

Virtual Office vs. Physical Office vs. Home Office

Type	Approx. Monthly Cost	Best For	Visa Risk
Virtual office (バーチャルオフィス)	JPY 5,000-30,000	Minimizing early costs	Medium to high; may not be accepted by Immigration
Shared office / coworking (シェアオフィス)	JPY 30,000-80,000	People who need an actual desk or workspace	Low to medium; confirm registration is allowed
Home office (自宅兼事務所)	JPY 0 additional	Solo founders, online businesses	Medium; requires landlord consent and a clear separation of space
Dedicated office	From JPY 80,000	Businesses with employees or client visits	Low

The practical choice for many founders: In the beginning, many people choose either a home office or a virtual office plus a separate residence. But if your visa review is likely to be strict, or you plan to hire staff, it is often better to think about dedicated office space sooner rather than later.

Corporate Lease vs. Personal Lease

You can rent under either your personal name or your company name.

Corporate lease (法人契約):

Screening focuses on the company’s financial condition rather than your personal income
The rent can generally be fully booked as a company expense
For a newly formed company with no track record, approval may actually be harder
You may need to submit documents such as the company registry certificate and financial statements

Personal lease (個人契約):

Screening focuses on your personal income and immigration status
Only the business-use portion can be treated as an expense
In the first year of a new business, this can sometimes be easier to pass

Recommendation: In your company’s first year, if there are no financial statements yet, a personal lease is often the more realistic option. Once the business is stable, you can consider switching to a corporate lease.

Where to Search and How the Process Works

Online Property Platforms

Start online and narrow your options:

SUUMO: Japan’s largest property listing site, with the broadest inventory
HOME’S: Comparable to SUUMO, with strong search functionality
UR Urban Renaissance (UR都市機構): public housing with no guarantor, no key money, and no renewal fee, making it especially foreigner-friendly
GaijinPot Apartments: aimed specifically at foreign residents
Real Estate Japan: foreigner-friendly and available in English and Chinese

Choosing a Real Estate Agent

Major chains such as Able, Apamanshop, and Mini Mini: larger inventory, standardized process, and some multilingual branches
Local agencies: stronger knowledge of neighborhood-specific inventory and sometimes access to listings the major chains do not have
Foreigner-focused agencies: used to dealing with language and screening issues; fees may be a bit higher, but the process is often smoother

Best choice for many entrepreneurs: If your Japanese is limited, an agent that offers Chinese support or English support can prevent a lot of avoidable problems, even if the selection is somewhat narrower.

Full Process from Search to Move-In

Set your budget and target area (1-2 days)
- Keep rent within roughly one-third of monthly income
- Consider commuting needs and everyday convenience
Search online and contact agents (1-2 weeks)
- Filter on SUUMO and HOME’S
- Contact 2-3 agencies and explain your needs clearly
View properties in person (1-3 days)
- See 3-5 units in one round if possible
- Check noise, sunlight, and the surrounding environment
Submit the application (same day)
- If you decide on a property, apply immediately
- Good listings move fast
Tenant screening (3-7 days)
- Screening by the guarantee company plus the management company or landlord
- You may receive a phone call for identity confirmation
Important matters explanation and contract signing (1 day)
- A licensed real estate professional explains the key legal terms
- You sign the lease agreement
Pay initial costs and receive the keys (on the agreed date)
- Pay the full upfront amount
- Receive the keys and move in

The full process usually takes around 2-4 weeks. If you are not yet in Japan, some agencies can arrange remote property viewings (オンライン内見), but the contract stage often still requires you to be present in person or to appoint a representative.

Tips for Passing Screening

This is often the hardest part for entrepreneurs. You do not have a standard employment certificate or annual withholding slip from a company. So how do you prove your ability to pay?

What You Can Use as Proof of Income

Entrepreneurs can often submit:

A copy of your tax return (確定申告書の控え): if you have already filed taxes in Japan, this is one of the strongest forms of proof
Corporate financial statements (法人の決算書): persuasive if the company is profitable
Bank balance certificate (銀行口座の残高証明): showing enough cash on hand can also demonstrate payment ability
Business plan (事業計画書): some landlords and guarantee companies may consider it; for guidance, see our business plan guide

The most realistic approach in year one: Prepare a strong bank balance certificate, ideally showing savings equal to at least one year’s rent. If you do not yet have much income history, cash reserves often matter more. For opening a bank account in Japan, see our bank account guide.

Choosing the Right Guarantee Company

Guarantee companies vary in how strict they are:

Credit-affiliated companies (such as Orico and JACCS): the strictest; they may check credit information, so they are often not ideal for entrepreneurs
LICC-member companies: moderate in strictness; member companies share information
Independent guarantee companies (such as Four Seasons and Nihon Safety): often more flexible and focused mainly on ability to pay

Recommendation: Tell your agent clearly that you are an entrepreneur and ask them to steer you toward a guarantee company with more flexible screening. A capable agent can materially improve your approval chances by matching you to the right company.

The Importance of Japanese Communication

During screening, the guarantee company may call you for a simple identity confirmation. The questions are usually basic, such as your name, address, and reason for moving in. But if communication breaks down completely, they may become uneasy.

Practical measures:

Prepare likely questions and answers in advance
If your Japanese is weak, have a Japanese-speaking friend nearby to help
Some guarantee companies can handle Chinese or English support, so ask in advance

The Impact of Your Remaining Period of Stay

If your remaining period of stay is less than three months, your approval chances usually drop sharply. Landlords worry that if your renewal fails, you may leave Japan suddenly.

Recommendation:

If possible, look for housing after your visa renewal, when your period of stay is longer
If your current stay period is short, proactively tell the agent that your renewal is in progress and show the application receipt
It is wise to prepare your visa renewal materials early

What to Watch for When Signing the Lease

Even after you pass screening, you still need to read the contract carefully. Japanese lease agreements contain many clauses that can cause expensive problems later if you gloss over them.

Key Clauses in the Lease

Pay close attention to:

Lease term: usually 2 years
Use restrictions: whether office use is allowed (residential only vs. office use permitted)
No subletting: subletting is generally prohibited
Pets: whether pets are allowed
Musical instruments: whether instrument playing is allowed
Restoration obligations: what you will be expected to restore or pay for at move-out

Restoration at Move-Out (原状回復, genjou kaifuku)

Move-out restoration is one of the most common sources of disputes. Broadly speaking:

Ordinary wear and tear (通常使用による損耗): you generally should not pay for this, such as wallpaper fading from sunlight
Damage caused intentionally or through negligence (故意・過失による損傷): you usually must pay, such as nail holes or yellowed walls from smoking
Special clauses (特約): some contracts require professional cleaning at move-out, with the cost borne by the tenant

Recommendation: Take photographs when you move in, including every room, wall, and floor. If a dispute arises later, those photos can save you tens of thousands of yen or more.

Renewal Fee (更新料, koushinryou)

When the lease term ends and you renew, you often must pay a renewal fee, commonly equal to one month’s rent. Once you add administrative renewal charges and renewed fire insurance, the total renewal cost every two years is often around 1.5 months’ rent.

This is another distinctive feature of renting in Japan. If you want to avoid it, UR housing and some private listings are marketed as 更新料なし (no renewal fee).

Notice Period for Cancellation (解約通知期間, kaiyaku tsuuchi kikan)

If you want to move out, you usually need to give one to two months’ written notice. Keep the following in mind:

Most contracts require one month’s notice
The countdown starts from the date notice is given, not necessarily from the first day of the month
If you decide to leave suddenly, you may still owe rent for the notice period
Some contracts impose a short-term cancellation penalty if you move out within the first year, often equal to one month’s rent

Housing Strategy for Entrepreneurs

Renting is not a one-time decision. Your housing strategy should evolve as your business grows.

Early Stage: Consider UR Housing

If you have just arrived in Japan, one of the strongest options is UR Urban Renaissance (UR都市機構, the Urban Renaissance Agency):

✅ No guarantor required
✅ No key money
✅ No agent fee
✅ No renewal fee
✅ Relatively more flexible screening for foreigners
❌ You may need to prepay rent or satisfy income/proof-of-funds requirements
❌ Location and building age may be less ideal than private-market alternatives

One UR application standard is monthly income equal to four times the rent, or alternatively the ability to prepay or show sufficient assets. For entrepreneurs, the most realistic route is often the savings-based option, showing savings of at least 100 times the monthly rent.

Growth Stage: Upgrade Your Home and Office Setup

After one or two years of operating, once your company has financial statements and stable income:

Consider renting a better residence under a corporate lease
Separate your residence and office if the business requires it
Choose office space appropriate for the scale of your operations

How a Change of Address Affects Your Visa

After moving, you must file a moving-in notice / change-of-address notice at the municipal office for your new address within 14 days. At the same time:

The address on the back of your residence card will be updated
If your company address also changes, you must file a corporate registry change
At your next visa renewal, Immigration will check whether your address information is consistent

If you change both your home address and company address around the same time, it may affect scrutiny at visa renewal. As a practical matter, it is better not to make frequent address changes immediately before or after renewal.

If your family members are also in Japan on a Dependent Visa, you will need to update their address records as well when you move.

Frequently Asked Questions

Q1: Can I rent without a residence card?

Usually no. A residence card is a core identity document for rental screening. If you are still outside Japan and have not entered yet, a friend or agent in Japan may be able to help you search, but formal contract signing typically requires a residence card. Some agencies may accept a passport plus proof of visa approval, such as a Certificate of Eligibility.

Q2: Is renting different for Startup Visa holders?

Yes. A Startup Visa (スタートアップビザ) often comes with a short period of stay, typically six months to one year, which can make screening stricter. UR housing and agencies that specialize in foreign clients are usually the best places to start.

Q3: What rent level is reasonable?

In Tokyo’s 23 wards, a 1K to 1LDK suitable for one person or a couple is often around JPY 70,000 to JPY 120,000 per month. Osaka, Nagoya, and other cities may be 20% to 30% cheaper. In the early stage, it is sensible to keep housing costs within 25% to 30% of monthly income or available budget.

Q4: Can I rent a residence under my company name?

Yes. That is a corporate lease (法人契約). However, you will generally need company documents such as the registry certificate and financial statements. If the company is in its first year and has no completed accounts yet, some landlords may refuse.

Q5: What if office use is prohibited but I still want to work from home?

If you are simply doing quiet online work on a computer, with no signboard, no client visits, and no increased foot traffic, it may be difficult for anyone to notice in practice. But you should still be careful: do not register that address as your company’s head office address if the lease prohibits such use. One workaround is to register the company at a virtual office while using the apartment purely as your residence.

Q6: What should I do if I fail screening?

Do not assume it is unusual. Rejection is common. The reason may be the guarantee company, the landlord’s policy toward foreign tenants, or your short remaining period of stay. Ask the agent to try a different guarantee company or a different property. Submitting multiple applications is normal.

Q7: What happens to my lease if my visa is denied or not renewed?

The lease and your visa are legally separate matters. Even if your visa expires and you need to leave Japan, you still need to follow the lease cancellation process properly: give notice, restore the property as required, and settle any final charges. Do not simply disappear. The guarantee company may pursue the debt, and that could create future problems if you want to return to Japan. For common refusal issues, see our analysis of Business Manager Visa rejection reasons.

Q8: If I want to buy property after a few years, what should I know?

Japan does not require permanent residency for property ownership, and foreigners can buy real estate, including with financing, although loan conditions are stricter. In many cases, once you have lived or run a business in Japan for three years or more, with stable income and a solid credit record, buying becomes more realistic. After obtaining permanent residency, financing conditions usually improve substantially.

Q9: Do I need to notify Immigration when I move?

You do not usually notify Immigration directly for a residential address change. Instead, you must report the address change at your local municipal office within 14 days, and the new address will be recorded on the back of your residence card. Immigration will see your updated address information at your next renewal.

Some properties allow it, but all occupants generally need to be clearly identified in the contract. Many listings are marked 二人入居不可, meaning two-person occupancy is not allowed. If you plan to share with a business partner, filter for properties that permit two occupants from the start.

Final Thoughts

Renting in Japan is undeniably difficult for foreign entrepreneurs, but it is not an impossible barrier. The key is to prepare early, keep your expectations realistic, and apply broadly.

Your first apartment does not need to be perfect. The important thing is to get settled, stabilize your visa status and your business, and upgrade later when you are in a stronger position. Many successful foreign founders in Japan started out in a small 1K apartment.

If you are preparing to launch a business in Japan, it is worth first reading our complete guide to the Business Manager Visa and our detailed breakdown of Business Manager Visa costs so you understand the overall process and financial picture before planning your housing strategy.

I hope you find a place that works well for you and that your business in Japan gets off to a smooth start.