Useful Informatmion of Administrative & specialized procedures in Japan

One of the things you need to prepare for when moving to Japan is finding a place to live. Since this will be your home base, it’s essential to secure one. Some people may already own a home—whether they purchased it or inherited it—while others plan to rent, and still others may stay temporarily with relatives or friends. 

For those who do not own a home or have a family’s home in Japan and are planning to rent a property, the issue of a guarantor is a major concern. The guarantor required for a rental contract serves as a “joint guarantor” (debt guarantor) who will pay the rent on the tenant’s behalf if the tenant fails to do so, and of course, they must be a resident of Japan. Consequently, when asking someone to be a guarantor, whether a relative or an acquaintance, they won’t agree unless you have a relationship of trust, and it can be difficult to ask in the first place. However, for those who have lived abroad for many years and have lost touch with their relatives and acquaintances, isn’t the lack of anyone to turn to a source of concern? 

In such cases, there are two options: (1) using a private guarantee company, or (2) applying for public housing that does not require a guarantor. In this article, we will focus on option (2): public housing. In a previous column, “Finding a Place to Live in Japan (3),” we discussed UR Rental 

1. What Are UR Rental Housing ?

UR Rental Housing is managed and leased by the Urban Renaissance Agency (UR). Compared to private rental housing, it has the following features:
① No “key money” is required upon signing the lease
② No brokerage fees
③ No renewal fees
④ No guarantor required

Since the former Japan Housing Corporation, established in 1955 (Showa 30), built its first housing complex the following year in 1956 (Showa 31), it has been responsible for the supply and management of rental housing that meets the needs of the times for approximately 70 years. As indicated by the phrase “the demands of the times,” the organization supplied a large number of housing units (primarily housing complexes) during the high-growth era of the 1950s and 1960s. Subsequently, as the population growth slowed in the 1970s and began to decline thereafter, the number of new units supplied decreased. However, the organization continues to provide housing to new prospective tenants while maintaining a relatively constant number of vacant units. 

2. Recent Trends

While many of the housing units in our portfolio are housing complexes built between the 1950s and 1960s, as these buildings have aged—now 40 to 50 years old—and begun to deteriorate, we are proceeding with their redevelopment into condominiums featuring improved design and comfort (space and functionality) to meet rising incomes and changing lifestyles.
Furthermore, while the focus used to be on prioritizing the construction and supply of new housing to meet the demands of economic growth and population increase, recent efforts have shifted toward creating “mixed communities utilizing UR rental housing,” with a greater emphasis on fostering more livable environments.
Specifically, these efforts include:

●Creating a child-friendly living environment through the deployment of UR Child-Rearing Supporters
●Convenient systems to support families with children and elderly households
●Enhancing the housing safety net based on local circumstances

and other initiatives. 

3. Terms that make it easy for elderly people returning permanently from abroad to rent

1) No guarantor required
As mentioned in the features above, UR rental housing does not require a guarantor at the time of signing the lease. By establishing income requirements at the time of move-in (described below), we do not require a (joint) guarantor. However, while a guarantor is not required for rent payment purposes, you must register two domestic contacts (relatives, acquaintances, etc.) to serve as points of contact in emergencies (such as health issues or death).

2) No restrictions on nationality
There are no restrictions on the nationality or age of residents. Consequently, elderly individuals who have acquired foreign citizenship are also eligible to move in.

3) You can apply even without a steady income
The income requirement for application states that you must have “an average monthly income of at least four times the monthly rent.” However, there are cases—such as retirees—where applicants have substantial assets (savings) but do not meet the income requirement because their sole source of income is a pension. In such cases, you can still apply by paying a lump-sum deposit (equivalent to 15 months’ rent) in advance at the time of application. 

4. Important Points to Note

While these properties are relatively easy to rent, there are some important points you should be aware of beforehand.

1) To apply for UR rental housing, you must be a resident of Japan (i.e., have a resident registration). Therefore, returnees must first register their residence—even if it is a temporary address—before applying.

2) Although there are many properties nationwide, particularly in the Tokyo metropolitan area, the vacancy rate is not particularly high. With the exception of some high-priced properties, vacancies can be hard to come by. Furthermore, unlike private rental contracts, you cannot enter into a lease agreement on the condition that you will pay rent even if you do not move in (you must move in within one month of the move-in date). Therefore, for returnees, it is uncertain whether a vacancy will be available by the time they return. Consequently, taking point 1) above into account, you will likely need to start living in temporary housing after returning to Japan and search for a vacant UR housing unit during that time.

3) As mentioned in point 3 above regarding the favorable rental conditions, the fact that there are no restrictions based on nationality or age has led to an increase in foreign tenants. Of course, since there is a proper screening process in place, there are no undocumented immigrants; however, in areas with a growing number of foreign tenants, cultural differences may lead to situations that feel somewhat unfamiliar to Japanese people (including former Japanese residents).