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Breaking Down Barriers in Japan's Rental Housing Market

Once the decision to work or study in Japan has been made, one of the next major considerations is finding somewhere to live. If your company is sending you then it is likely that they will provide assistance, whereas independents and students must generally do everything for themselves. Lack of knowledge of the language and local customs can be barriers to accessing information. But what if, on arrival, you discover other obstacles of which you were previously unaware?


Even if you have yet to arrive in Japan, it is likely that you have heard of the high costs involved in getting settled. Once you have found a place, up-front costs usually comprise one month's rent, between one and two month's rent as a deposit, one month as an agent fee and usually two month's rent as “reikin” or key money - a kind of gift to the landlord. While the deposit is potentially refundable, this will not be determined until you move out, so moving into your own apartment generally means being prepared and able to part with six months' rent all at once. If you are moving to Osaka this could be even higher, for in Japan's second largest city key money and deposit together can sometimes total as much as 10 months' rent, making move-in fees seem almost impossibly high.


Another factor that adds to the expense of renting is that property in Japan tends to come unfurnished. It is worth noting that “unfurnished” here means literally nothing at all. You will find you need to acquire everything, including a gas burner for cooking, refrigerator, and some form of heating/cooling system (as well as the usual soft furnishings and furniture). Needless to say, there is a strong market amongst the international community for the trade of second-hand goods, so these things may not work out to be as expensive as you might think.


Because of these high costs, many people find that they need to work and save for a while before being able to rent their own place. In the meantime, other options do exist and these come in the form of shared houses known as “gaijin houses.” Some agents specialise in running these and with no key money to pay and usually only one month's rent at most as a deposit, gaijin houses can be a more affordable option, certainly in the short term. They usually come furnished too. Local English language magazines such as Metropolis are often a good source of information (www.metropolis.co.jp) and they also have a respectable classifieds section for buying and selling used goods.


But what of the local rental housing market? Many foreigners with experience living in Japan are able to recount stories about the difficulties that can arise when looking for accommodation with local estate agents. The reasons why many landlords and agents are reluctant to work with foreigners may be far-reaching but often include fear of not being able to communicate effectively, the belief that foreigners lack awareness of how the housing system works (which includes matters such as rubbish collection and acceptable noise levels), and mistrust of guarantors who may reside overseas. Yet as the numbers of foreign residents – already showing a steady increase over the last 10 years – looks set to continue to rise (perhaps quite dramatically), this issue has recently been drawing attention from both government officials and private sector businesses. This is good news for anyone looking to rent their own apartment!


A few forward-thinking companies began offering bespoke housing services to foreigners at the lower end of the rental price bracket during the bubble economy of the 1980s. These businesses have evolved to offer a range of property services that cater to an equally wide range of budgets and needs, and their success has naturally drawn others to follow suit. Despite this, the rental market remains far from open for foreign residents, whose experiences include being turned away at the door of estate agents or being told that there are no properties available within their budget even when their promotional material suggests otherwise. In 2007 the Land, Infrastructure, and Transport Ministry began an initiative to resolve this issue by setting up a website that aims to share information between local councils, home-seekers, landlords, agents, and not-for-profit organisations. The site, “Anshin Chintai” or Safe Rental Housing, also offers assistance to the aged, disabled, and families with young children who may have special needs when it comes to housing. Initially five areas in Japan signed on to the project. This has more than doubled in the last year, indicating a growing recognition for the need of such a service throughout Japan. Currently only available in Japanese, the Ministry is considering offering services in other languages in the near future. You can visit them at www.anshin-chintai.jp.


Another organisation making positive moves in this area is the Japan Property Management Association (JPMA) with their website “Welcome Chintai” (www.jpm.jp/welcome). With more than 1,000 estate agent members, its purpose is to act as a network of information between agents, landlords, and lessees. Information on the site details the process involved in renting and is thoughtfully provided in six languages, including Spanish, Russian, and Chinese. The site also offers a consultation service to landlords who are considering renting to foreigners but are not sure what to expect. Another ingenious feature is that it plays host to blog-like entries posted by estate agents. This allows them to share their experiences, which in turn serves to educate other agents. JPMA cites this as a useful tool that is helping to demystify the process for many in the rental property business, a necessary step in debunking some of the myths that result in uneasiness among landlords.


While it is clear that the benefits of these initiatives can be felt by those seeking a home more or less immediately, there are likely to be other, more subtle gains that may only be felt in time by the wider community. Anything that helps to smooth and foster relationships between a local population and its immigrant residents has to be a good thing, and with the numbers of newcomers predicted to rise considerably in the short term, such moves are to be lauded - and encouraged.

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