How Much Does It Cost To Live in Japan: Apartment Rent

This morning, I started searching for Japan jobs for gaijin like me. However, I was stuck on how much monthly salary I need in order to stay in Japan. So I researched first on how much does it take to live in Japan. Here's an interesting article. 

This is just one aspect of living in Japan but this plays an important key. Why? In order to apply for an apartment in Japan, the minimum required monthly income should be thrice the monthly rent of the property. This means that if I can find an apartment and it has a certain price we multiply it to three and that's the minimum salary that I should have (now we have a target minimum salary). I know that the  initial cost of renting an apartment in Japan is really costly, but in this post it will answer how much.

This article was published in 2010 but when I search for the current rates in GaijinPot it was almost basically the same.

Key insights from this article:

1. Usually the properties are fully furnished and the cost of utilities may even be included in the monthly rent
2. Real Estate agents in Japan really ensures that the renter enjoys the rental. Their fee is quite substantial but it is worth it.
3. For gaijin renter, a guarantor is needed. Guarantor is a Japanese, has a stable financial record, and has a minimum monthly income of approximately 3x the monthly rent of the property.
4. Try to look for apartments prior March. Why? March is the end of the academic year and everybody seems to be moving at this month.
5. Expected cost of moving:
1. Reservation Fee (RF) - this fee usually range from 50% to 100% of the monthly rent
2. Deposit (D) - depends on the property usually ranges from 1 to several months rent. Usually non-refundable
3. Cleaning Fee (CF) - usually 50% of the monthly rent
4. Key change fee (KC) - usually costs around Y10,000
5. Key money (KM) - usually 1 to 6 months of rent. Gratitude money for the landlord
6. Real estate fee (REF) - usually costs one month rent + 10%
7. Guarantor Company Fee (GCF) - usually cost 50% of the month's rent (if there's a guarantor company)
8. Rent and Maintenance Fee (OTH) - usually costs Y10000 to Y20000

Maximum Initial Cost of Moving without GCF

Let MR = Monthly Rent

Max Initial Cost of Moving (ICMax) = RF + D + CF + KC + KM + REF + OTH

RF = MR; D = 6*MR; CF = 0.5*MR; KM = 6*MR; REF = 1.1*MR

ICMax = MR + 6MR + 0.5MR + 10000 + 6MR + 1.1MR + 20000

ICMax = 14.6MR + 30000 <<< General Maximum Equation of Initial Cost of Moving (+0.5MR with GCF)

Minimum Initial Cost of Moving with

Min Initial Cost of Moving (ICMax) = RF + D + CF + KC + KM + REF + OTH

RF = 0.5*MR; D = MR; CF = 0.5*MR; KM = MR; REF = 1.1*MR

ICMin = 0.5MR + MR + 0.5MR + 10000 + MR + 1.1MR + 20000

ICMin = 4.1MR + 30000 <<< General Minimum Equation of Initial Cost of Moving (+0.5MR with GCF)

Example: Monthly rent in Tokyo Apartment is 40000

Initial Cash out of moving in ranges from ICMin to ICMax = 4.1*40000 + 30000 + 14.6*40000 + 30000

Answer: Y194,000 to Y614,000 (Php97,000 to Php307,000)

6. The property is valid for two years. After two years, renewal is required. This costs usually 1 to 2 months MR to the landlord, a possible fee to real estate agent and another fee to guarantor company.

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