CoL Tokyo Part 1: Housing

Tokyo is one of the largest and most famous cities in the world, and a place where many people aspire to live. In this article, we will detail what it costs to live in Tokyo and introduce specific living expenses such as housing, food, and transportation. We will also explain how to save money in Japan to keep those costs as low as possible. We hope that this information will be useful for those seeking to start a new life in Tokyo.

In this article we will have an in-depth look at renting in the city.

Rental Costs

Living alone in Tokyo costs an average of 80,000 yen for a one-room apartment, with 60,000 being considered cheap and 120,000 a bit upmarket (for one room). Of course, many apartments fall outside this range — on both ends of the scale!

Renting as a couple or family — or simply if you a as ingle person want more space — will push the average price up, but not by as much as you might think. Going out from the city center and away from major stations, it’s fairly common to find a 2LDK (Living, Dining, Kitchen) house with a small garden for around 100,000 yen per month.

Housemates

House- and room-mates are not a common living arrangement in Japan. One party will usually have to be the sole signatory on the lease, leaving them with all the risk and the other house-mate(s) without any legal standing in disputes. Luckily, the low cost of housing overall means that a housemate isn’t a requirement like it is in many other large cities.

Furnishings

Rentals are almost always supplied unfurnished. This includes having to provide your own refrigerator and washing machine. Most apartment buildings do not have coin-operated washing machine like you might be used to if coming from the USA, so you will have to buy one or use a local laundromat. Laundromats are plentiful in high-population areas. Large appliances like fridges and washing machines can be bought extremely cheaply from second-hand stores (and often for extremely cheap or even free in ‘sayonara sales’ from other immigrants leaving Japan), but then of course it becomes your responsibility to remove when you move out.

Additional Fees

One point that often catches first-time renters in Japan is the cost of moving in, however. While the monthly rents can be very affordable, at the point of moving in it is common to pay a month or two up front, a month or two as deposit, and a month or two of ‘key money’ — a non-refundable charge paid at the beginning of the contract. Coupled with additional costs like fire and earthquake insurance and setting up the utilities makes the up-front cost of moving in to a new rental quite large — usually in the 500,000 to 1 million yen range. This, plus the cost of hiring movers to transport all your furniture and large appliances, means that most Japanese people change houses quite infrequently.

Signing Contracts

Renter protection and lease contracts are very good in Japan. The standard rental contract is for two years. Preference is generally given to the renter renewing the contract; the landlord hiking the price or asking the tenant to move out is rare.

However, due to the protections afforded renters plus the lack of anti-discrimination laws in Japan, a number of landlords and real estate agents will be hesitant about renting to immigrants. This is usually trepidation about not being able to communicate easily with tenants or worrying about them suddenly breaking the lease to return to their country as opposed to flat-out racism, but that doesn’t take the sting out of being directly told, “no foreigners!” This has gotten a lot better in recent years, but can still be quite shocking when encountered in the wild! If you can demonstrate conversational Japanese and an understanding of cultural mores sometimes they will break the ‘no foreigner’ rule, but it’s often best to just take a deep breath, smile, and try somewhere else.

Another convention of renting in Japan that is difficult for foreigners to navigate is the requirement of a guarantor when signing a contract. This legally nominates another person to be responsible for paying the rent if the tenant doesn’t, or is late in paying. Being on the hook for another person’s rent means this is almost always a member of the renter’s family, but since an immigrant to Japan is not likely to have family in the country this can be a problem! Occasionally companies with offer to be guarantor for their employees. Again, in recent years this has gotten easier — it’s quite common to be able to use a guarantor company these days, which is usually offered through the real estate company. These are not usually very expensive, but do add more onto the already-high up-front costs of moving in to a new place. Why they feel the need to bring in a third party when you’re already paying a deposit remains just one of those things.

Share Houses

One option to avoid a lot of the downsides of up-front costs, long contract periods, guarantors, and needing furniture is to live in a ‘share house.’ Traditionally an option for students or migrant workers, they have found a niche in Japan for people who don’t want to be locked in to one place too much. They vary in amenities provided, but the standard share house will rent you a small, private, furnished room on a monthly basis in a building with shared bathrooms, kitchens, and communal areas. The culture of share houses vary wildly; ones with lots of young people and socializing often feel like a student dorm in a university, while others cater to professionals who tend to mind their own business and value peace and quiet. Monthly prices range from 40,000 yen on the lower end all the way up to the same price as a nice apartment, but they tend towards being the cheaper option. Due to the flexibility, ability to move in without needing furniture, and the option to socialize means that share houses are extremely popular among new immigrants to Japan, and many will stay at a share house for their first six months to a year in-country while they find their feet and look for more permanent housing.

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