Housing in Japan

Renting still means clearing a wall of non-refundable up-front fees, but a housing surplus and guarantor companies have made this far easier for foreigners without a Japanese cosigner than it was a decade ago.

Reikin and shikikin: the up-front wall

Two fees define moving-in costs. Shikikin (security deposit) typically runs 1–3 months’ rent and is partially refundable, though landlords routinely deduct cleaning fees before returning it. Reikin (key money) — literally "gratitude money" paid to the landlord — runs 1–2 months’ rent and is never returned, full stop. Add a half-to-one month agent commission and you’re commonly looking at 4–6 months’ rent just to get the keys. Key money is fading in newer buildings and in a softening market, so it’s always worth asking if it can be waived — plenty of listings now advertise "reikin nashi" (no key money).

The guarantor company is now the default

Foreigners without a Japanese relative or long-term colleague willing to act as personal guarantor overwhelmingly go through a guarantor company (hoshoinsha) instead — and increasingly, landlords require one regardless of nationality. Expect an initial fee of 0.5–1 month’s rent, plus a smaller annual renewal fee (roughly ¥10,000–20,000) for as long as you stay. This has meaningfully lowered the barrier that used to make renting as a foreigner painful; most mainstream agencies now work routinely with guarantor companies as a matter of course rather than an exception.

Rent: Tokyo’s premium is real but shrinking in perspective

A studio (1K) apartment in central Tokyo’s 23 wards runs roughly ¥80,000–110,000/month; the same unit in central Osaka is ¥55,000–80,000; in a regional hub like Fukuoka, ¥45,000–65,000. Move to the suburbs of any of these cities and rents drop another 30–50%. Globally, Tokyo is far less exceptional than its reputation suggests: Deutsche Bank’s 2026 cross-city survey ranked it just 40th of 69 cities for the cost of renting a three-bedroom apartment, averaging around $2,361/month versus $8,873 in New York.

Finding a foreign-friendly listing

Agencies like GaijinPot Housing, Sakura House and Ichii Gate specialise in English-language service and foreigner-friendly landlords; share houses (Sakura House, Oakhouse) skip key money and guarantor requirements entirely in exchange for a rent premium and shared facilities — a reasonable landing pad for your first 3–6 months while you build a Japanese track record.

Utilities

Electricity, gas and water are contracted separately, usually set up by phone or online within days of move-in — no deposit required for any of them. Gas is the one exception that needs an in-person appointment: a technician must attend to turn on the meter and check appliances, so book this before move-in day if you want hot water immediately.