I have translated the list of unique Japanese real estate industry expressions, customs, and procedures for foreign immigrants into English below:
Security deposit (shikikin) and key money (reikin):
A security deposit is a guarantee paid by the tenant when signing a rental contract. It is typically equivalent to 1-2 months’ rent. Key money is a payment made by the tenant to the landlord as a token of gratitude when signing a rental contract, also typically equivalent to 1-2 months’ rent.
Brokerage fees:
Fees paid to real estate agents when renting a property. The standard fee is equivalent to one month’s rent.
Renewal fees:
Fees paid by the tenant to the landlord when renewing a rental contract. The standard fee is equivalent to one month’s rent.
Fire insurance:
Insurance that tenants must join when signing a rental contract, providing compensation for risks such as fires and water damage.
Common area charges (kyouekihi):
Fees paid separately from rent for the maintenance and cleaning of common areas in a rental property.
Restoration costs:
Costs for returning the property to its original condition when moving out. These costs are typically deducted from the security deposit.
Act on Real Estate Brokerage and Management (takken-gyouhou):
A law that Japanese real estate agents must follow. This law requires real estate agents to be registered and licensed.
Contract documentation:
When signing a rental contract, documents such as the contract and important matter explanation documents are created. These documents are typically written in Japanese, but may also be available in English or other languages for foreigners.
Personal seals (hanko):
In Japan, it is common to use personal seals instead of signatures on contracts. For foreigners, if a seal is not available, a signature is also acceptable, but it may be recommended to create a seal.
Resident registration (juuminhyou):
After signing a rental contract, tenants must complete a resident registration procedure at the local city or town office. In the case of foreigners, a residence card is also required in addition to the resident registration.
Guidelines-based screening:
Japanese real estate agents perform screening on foreign tenants to verify their ability to pay rent and their residence status. Screening criteria vary by agent but generally include residence status, employment type, proof of income, and a Japanese guarantor.
Guarantor companies:
If a foreign tenant does not have a Japanese guarantor when signing a rental contract, a guarantor company may be required. Guarantor companies play a role in paying rent on behalf of the tenant if the tenant defaults on their rent payments. Using a guarantor company incurs a guarantee fee.
Move-out procedures:
When moving out, tenants must complete procedures such as restoring the property to its original condition, cleaning, and returning the keys. After moving out, tenants must also complete a resident registration transfer procedure.
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