- Rental guide
- If you plan to rent a privately owned house or apartment, it is convenient
to use the services provided by housing agents. Based on individual preferences
such as rent, property size or commuting methods, the agents can list and
give you the information on suitable rental properties. It generally costs
over six months' rent for an initial down payment to rent a property. The
cost includes the first month's rent, security deposit (shikikin), key
money (reikin) and agency fee.
Deposit(Shikikin): In principle, the security deposit should be returned to you by the landlord
when you move out of the property. Natural wear and tear is normally the
landlord/landlady's responsibility.
Key money(Reikin): Key money is more like a move-in fee you pay to the landlord is usually
equivalent to one to two months' rent. Key money is not refundable.
Renewal fee(Koushin ryou): Money to be paid to the landlord when you would renew the contract on
expiration of the lease term. The amount is in most cases equivalent to
one month's rent.
- Befor contract
- Regarding Rental Housing Dispute Prevention Regulations
In the Tokyo Metropolis a regulation has been in effect from October 1,
2004 that aims to prevent one of the kinds of disputes that arises related
to leased residences; that of liabilities for repairs and expenses related
to returning the property to its original state upon the completion of
the lease period. In order to achieve its goals, this regulation requires
that real estate agents mediating leases provide a standardized explanation.
As a result, all real estate companies mediating rental housing in the
Tokyo Metropolis must give an explanation on the following items.
(1) Rules regarding the return of the property to its original condition
upon departure, as well as repair cost liabilities during the period the
lessee lives in the property.
(2) Concrete information regarding the amount lessee is liable for within
the actual contract. Only enter into a contract after hearing this regulation-based
explanation, after comparing the thinking behind expenses liability expressed
in the rules with the information on expenses liability written in the
contract, after comparing the two for any disparities, and understanding
fully all of the information given.
Tokyo Metropolis Consultation Windows
Tokyo Metropolitan Government Bureau of Urban Development Housing Policy
Advancement Division Real Estate Industry Section: TEL: 03-5320-4958
Tokyo Metropolitan Special Consultation Window for Real Estate Transactions:
TEL: 03-5320-5015
Tokyo Metropolitan Center for Consumer Lifestyles: TEL: 03-3235-1155
Regarding the Explanation of Material Issues Concerning Asbestos and Earthquake
Resistance Examinations
Health damage by asbestos and the discovery of strength-deficient buildings
camouflaging their earthquake resistance has had an impact on the lives
of the Japanese, and has become a great societal problem. As part of its
efforts to address the problems of asbestos and earthquake resistance,
on March 13, 2006 the Ministry of Land, Infrastructure, Transport and Tourism
promulgated and enacted the "Ordinance to Partially Revise the Enacted
Regulations of the Building Lots and Buildings Transaction Business Act
" (hereafter referred to the "Revised Building Lots and Buildings
Transaction Business Act"), which requires real estate transaction
agents (hereafter referred to as "real estate agents") to conduct
standardized investigations and explanations on the use of asbestos in
the property and whether the property has undergone an earthquake resistance
examination. The explanation requirement set forth by this revision is
not only applied to sales, but to leasing as well.
Regarding the Asbestos Problem and the Requirements for Investigations
and Explanations
On September 29, 2005 the Ministry of Land, Infrastructure, Transport and
Tourism Real Estate Section told the industry the following: "Should
the buyer of a property sold in the past or currently being sold or mediated
by a real estate agent inquire into the usage of asbestos in the property,
the real estate agent must to the greatest extent possible handle such
inquiries in an appropriate manner that alleviates the doubts and concerns
of the buyer. Such handling would include asking the construction company
that built the building, the architect, or the seller regarding the use
of asbestos and relaying that information to the buyer". In this way,
the Ministry instructs real estate agents to disclose to the buyer information
related to asbestos usage when mediating.
The real estate agent must confirm with the building owner whether an Asbestos
Usage Investigation has been conducted, and if the results of that investigation
exist the record must be included with the Material Issues Explanatory
Document. After explaining the investigation date, the investigating organization,
and the scope and methods of the investigation, the real estate agent must
explain whether asbestos was used, where it was used, the condition of
the asbestos, and other related items. If there is no investigation record,
it is sufficient to record and explain that result within the Material
Issues Explanatory Document. The usage of asbestos in building materials
such as wall and ceiling materials is thought to have been widespread before
its prohibition in October 2004. However, even if building materials such
as wall and ceiling materials containing asbestos were used, if the materials
were used under normal conditions the presence of the materials in and
of themselves are not considered a risk to health.
Regarding the Earthquake Resistance Problem and the Requirement for Investigations
and Explanations
For transactions involving buildings constructed prior to May 31, 1981,
the real estate agent must confirm with a Designated Inspection Organization
whether the property in question has undergone an earthquake resistance
examination. If the building has undergone an examination, documents detailing
that examination must be included with the Material Issues Explanatory
Document, and basic items explained including the date of the examination,
the name of the organization that conducted the examination, and the result
of the examination. If the property in question has not undergone an examination
by a Designated Inspection Organization, the explanation requirement is
fulfilled by explaining that the building in question has not undergone
an earthquake resistance examination. Following the 1978 Miyagi Earthquake,
design methods used for earthquake resistance were drastically altered.
As a result, from June 1981 the current earthquake resistance design standards
have been incorporated into the Building Standards Law. In the January
1995 Kobe Earthquake there was significant damage to buildings constructed
prior to 1981, but little damage to buildings constructed after 1982 under
the new earthquake resistance design standards. This provided empirical
evidence of the strength of buildings that conformed to the new earthquake
resistance design standards, and buildings soon came to be referred to
as having been built under the pre-1981 design standards or under the post-1981
standards. For these reasons, new buildings constructed after June 1981
under the new earthquake resistance design standards are exempt from the
explanation requirement set forth under the revisions to the Building Lots
and Buildings Transaction Business Act.
- Agent commission
- Upon the conclusion of a contract, Agent commission (requires separate
consumption tax) will be invoiced as follows:
Lease Contract: One Month of Rent
Sales Contracts:Property Price is Less than Two Million JPY: Property
Price × 5.5%
Property Price is Between Two and Four Million JPY: Property
Price × 4.4%
Property Price Exceeds Four Million JPY: Property Price × 3.3%
Article 46 of the Building Lots and Buildings Transaction Business Act
The amount of remuneration a trader of building lots or buildings can
receive for the agency of sale, exchange or lease of a building lot or
building shall conform to the regulations provided by the Minister of Land,
Infrastructure and Transportation.
1970 Notice from the Construction Ministry No. 1552-4
The total amount of remuneration (including the consumption tax for the
said agency) that a trader of building lots or buildings can receive, for
the agency of the lease of building lot or building, from both of its clients
shall be within 110% of the monthly (--- omission ---) rental fee of the
said building lot or building. In such a case, the amount of remuneration
that a trader can receive from one of the clients for the agency of the
lease of the building provided for residence shall be, unless otherwise
consented to by the said client upon the acceptance of the said agency
request, within the amount equivalent to 55% of the monthly rental fee