Q：What is a security deposit?
A：It is money deposited with the landlord. When you move out, the cost of restoring the room to its original condition will be deducted, and the remaining amount will be returned.
Q：What is key money?
A：It is a gratuity payment made to the landlord.
Q：Is key money always required?
A：Actually, it depends on the property. Recently, more and more rooms come with “no key money.” However, in popular areas or newer buildings, key money is still often required.
Q：What is a guarantor company?
A：It is a company that guarantees the rent. In recent years, joining has become mandatory for almost 100% of rental properties.
Q：How much does a guarantor company cost?
A：It depends on the guarantor company. The initial fee is usually 50–100% of the monthly rent, and the annual renewal fee is often around 10,000 yen.
Q：What is fire insurance?
A：Fire insurance is required for almost all rental properties. It is an important insurance that covers not only fire but also damage from water leaks, natural disasters, and even liability for damages to neighboring units.
Q：What is 24-hour trouble support?
A：This is a 24-hour support service that covers issues such as water leaks, lost keys, and broken glass.
Q：What is deodorization and antibacterial treatment?
A：This is a treatment carried out before moving in.
Q：What is a renewal fee?
A：It is an additional fee usually paid every two years, roughly equivalent to one month’s rent. It is especially common in Tokyo, but in some regional areas it may not exist at all.
Q：What is a move-in screening?
A：Before renting a room, the landlord or guarantor company will conduct a screening to check whether you can pay the rent properly and follow the house rules. It is common for them to review your workplace, income, and residence status. At SIMCITY, we have supported many foreign clients in successfully passing the screening. Our strength lies in giving strong advice on document preparation and the screening process.
Q：What is the schedule from application to move-in?
A：The process usually takes about two weeks.
Q：I would like to avoid paying double rent as much as possible.
A：In principle, new rent will start after about two weeks, but if you have a preferred date, we will do our best to negotiate, so please feel free to consult with us!
Q：How much are the initial move-in costs?
A：Normally, the initial cost is about 4.5 to 5.5 months’ rent, but we also have many more affordable properties, so please feel free to consult us.
Q：Is short-term rental (Minpaku) allowed?
A：Running a short-term rental (Minpaku) without permission is strictly prohibited. However, our company also handles properties where Minpaku is allowed, so please feel free to consult us.
Q：How do I set up contracts for utilities (water, electricity, gas) and the internet?
A：Before moving in, you need to apply to each company. At SIMCITY, we also provide free support to handle all the procedures at once when you move, so please feel free to consult us.
Q：What are the first things I should buy when moving?
A：I think curtains and toilet paper.
Q：Can the security deposit be returned?
A：Basically, it will be refunded when you move out. However, if there are stains or damages, repair costs will be deducted, so please be aware.
Q：How much income is required to rent a room?
A：Generally, the rule of thumb is that rent should be within one-third of your income. For example, if your monthly income is 300,000 yen, a rent of around 100,000 yen is considered safe. At SIMCITY, we propose properties that are “easier to pass screening” based on your income.
Q：Are there properties with furniture and appliances included?
A：Yes, we also have properties with furniture and appliances. We can support both the purchase and rental of furniture and appliances.
Q：What happens if I want to terminate the lease early?
A：Normally, you can terminate the lease with 1–2 months’ notice. However, in the case of early termination, a penalty fee may apply.
Q：Can I get a mobile phone number without having an address?
A：Yes, you can. To sign a mobile phone contract in Japan, you basically need an “address” and a “residence card.” For short-term stays or if you don’t have a fixed residence yet, it may be difficult to get a contract. But don’t worry—at SIMCITY, we can guide you to options popular among foreigners, such as “data SIMs” and “prepaid SIMs,” which you can use even before securing housing.
Q：How is a residence card issued?
A：A residence card is issued to foreign nationals staying in Japan for the mid- to long-term, either upon entry or at the municipal office. The procedure requires a passport and a photo. At SIMCITY, we not only assist with finding a room but also support the “administrative procedures at city hall,” so that even first-time residents can start their new life with peace of mind.
Q：How can I get a visa issued?
A：A visa is issued through Japanese embassies or the Immigration Bureau for entering and staying in Japan. The required documents differ depending on the type, such as work visas, student visas, or family stay visas. At SIMCITY, we collaborate with certified immigration specialists, so we can provide one-stop support not only for real estate but also for visa consultation.
Q：Is wearing shoes indoors strictly prohibited?
A：Yes, in Japanese homes, wearing shoes indoors is basically prohibited. There is a culture of taking off shoes at the entrance, which is both a matter of manners and a lifestyle rule. At SIMCITY, we also introduce “furnished properties” and “designer properties popular among foreigners,” so you can find a comfortable home even before getting used to Japanese culture.
Q：Are garbage disposal rules strict?
A：Yes, they are strict. Since problems often occur, please follow the rules of the local municipality and separate burnable garbage, non-burnable garbage, recyclables, and bottles/cans/plastic bottles before disposing.
Q：How should I dispose of bulky waste?
A：In Japan, bulky waste cannot be disposed of with regular garbage. You must apply to the local municipality, book a collection date, and attach a designated sticker. Since collection may take about one month, please make arrangements early.
Q：Can foreign nationals rent a house?
A：Of course, you can. A screening by the guarantor company, the management company, and the property owner is required, but even if you don’t speak Japanese, it’s no problem as long as you have support. You can count on us.
Q：What documents are required at the time of contract?
A：Passport, residence card, proof of income, and workplace information. These four are the basics.
Q：What kinds of neighborhood troubles are most common?
A：The most common issue is “noise.” In particular, sounds at night and musical instruments often cause problems. Since everyone lives together in an apartment building, let’s try to live without disturbing others.
Q：When I arrive in Japan, are there any procedures I should take care of first?
A：Go to the municipal office and register your address on your residence card.
Q：Can I open a bank account?
A：To open a bank account, you need a mobile phone number and an address, so please prepare these two first.
Q：How can I get a health insurance card?
A：After registering your address at the municipal office, a notification will be sent to your home. Once you receive it, take it to the office, and your health insurance card will be issued.
Q：I don’t live in Japan yet—can I still rent or buy a house?
A：Basically, it is possible. Even if you don’t live in Japan yet, you can sign a contract if you have documents such as a passport, planned residence status, and workplace information. However, the guarantor company may require proof of income or details of your overseas workplace to confirm your ability to pay rent. Even if “you can’t view the property in person before coming to Japan,” you can still contract by using online or proxy viewings. At SIMCITY, we make use of video viewings and an electronic contract system so that you can search for and sign a property from abroad.
Q：Can foreign nationals purchase real estate in Japan?
A：Yes, there are no nationality restrictions. Purchasing with cash is smooth, but for loans, conditions differ depending on the bank. The procedures vary significantly depending on whether you have an address in Japan or not. Please feel free to consult with us.
Q：Can foreign nationals get a loan?
A：Even foreign nationals can obtain a loan if they have a stable income in Japan and meet conditions such as residence status and years of employment. However, the screening criteria differ by bank. SIMCITY’s strength lies in its strong network with banks and financial institutions. We can introduce you to “banks experienced with foreigner loans” and provide full support until your purchase is complete.
Q：Could you tell me the general timeline for purchasing real estate?
A：The process from property search to contract and handover usually takes about 1–2 months. ① Property search → ② Purchase application → ③ Preliminary screening by the bank → ④ Contract → ⑤ Final loan screening → ⑥ Settlement & handover. This is the general flow. At SIMCITY, we provide one-stop support from property search to loan procedures and contract translation, so even busy clients can feel at ease.
Q：What is a bank’s preliminary screening?
A：Before purchasing real estate, banks conduct a “preliminary screening” to determine how much they can lend to a person. They check factors such as annual income, employer, and residence status. Passing the preliminary screening makes the property contract process much smoother. Not only for Japanese nationals, but we can also introduce “banks that are more likely to approve foreigners.” If you are worried about loans, please feel free to consult us.
Q：What costs are involved besides the property price?
A：In addition to the property price, you will need to pay costs such as “brokerage fee,” “registration fee,” “judicial scrivener fee,” “fire insurance premium,” “loan administrative fee,” and “fixed asset tax adjustment.” The guideline is around 7–10% of the property price. At SIMCITY, we clearly simulate these initial costs in advance to help you avoid the trouble of “it was more expensive than expected.” Please feel free to consult us.
Q：How much down payment is required?
A：When purchasing real estate, the typical down payment is around 2–20% of the property price. For example, for a property worth 50 million yen, the down payment is usually about 1–10 million yen. A higher cash ratio makes loan screening more favorable. Of course, some banks even offer zero down payment loans, so please feel free to consult us. At SIMCITY, we support you with “down payment simulations” and “bank-by-bank condition comparisons” tailored to your situation.
Q：How much is the fixed asset tax?
A：The fixed asset tax is several hundred thousand yen per year. For condominiums, management fees and repair reserve funds are typically around 10,000–30,000 yen per month.
Q：I would like to purchase real estate. How much annual income is required to get a loan?
A：As a guideline, the borrowing limit is said to be “5 to 7 times your annual income.” For an annual income of 5 million yen, a loan of around 25 to 35 million yen is common. At SIMCITY, we compare conditions across banks and simulate loans tailored to each client.
Q：Do contracts have to be in Japanese?
A：Most contracts are in Japanese, but at SIMCITY we can provide explanations in multiple languages such as English, Chinese, and Korean.
Q：Which is better, a house or a condominium?
A：House: Land becomes an asset, no management fees, high flexibility for renovations. Condominium: High security, often close to stations, easier to resell in the future. The choice depends on whether it’s “for living or for investment” and “convenience or asset value.” At SIMCITY, we provide “comparison materials for houses and condominiums” tailored to your lifestyle and investment goals.
Q：Which is better, renting or buying?
A：For those on short-term stays or with frequent job transfers, renting is more convenient. In Tokyo especially, renting is more common. Although there are initial costs, the benefit is the flexibility to move. On the other hand, for those thinking about asset building, purchasing is recommended. After purchase, loan repayments turn into “assets,” which can be more advantageous in the long run. At SIMCITY, we offer both “rental” and “purchase” options, helping you choose the best based on your future plans.
Q：Can I view the property at any time?
A：Depending on the property, same-day viewings may be possible, but in some cases reservations are required due to the owner’s or management company’s schedule. At SIMCITY, we adjust the schedule to fit your availability, so even busy clients can view properties without difficulty.
Q：Do you handle not only residences but also commercial properties?
A：Yes, we also handle a wide range of commercial properties such as shops, offices, and business premises. We can make proposals tailored to industries such as restaurants and beauty salons. At SIMCITY, we not only introduce properties but also advise on the permits and procedures required for opening a business.
Q：Do you also handle investment properties?
A：Absolutely. From studio apartments to entire buildings, we can introduce a wide range of investment properties. We also provide proposals that include yield analysis and exit strategies. At SIMCITY, we have supported many investors both domestic and international, so you can consult us with confidence.
Q：Can purchasing real estate in Japan grant permanent residency?
A：Purchasing real estate alone does not grant permanent residency. However, it can sometimes be a positive factor in long-term residency plans.
Q：What types of investment properties are popular in Japan?
A：Studio apartments, family-type condominiums, whole apartment buildings, and commercial buildings are popular.
Q：Which areas are expected to increase in value in the future?
A：It cannot be said universally, but redevelopment areas (along the Yamanote Line, around new stations, and central Tokyo) are noteworthy.
Q：I would like to rent out the property I purchased. Do you also provide property management services?
A：Yes, SIMCITY also provides property management services. From tenant recruitment to rent collection and move-out inspections, we handle everything comprehensively. Property owners can focus on real estate management with peace of mind.
Q：I would like to find a new tenant for my rental property. Can you help me?
A：Yes, we have extensive experience in rental brokerage. We can handle everything from tenant recruitment and property viewings to contract procedures in one package. If you are struggling with vacancies, please feel free to consult us.
Q：In the case of property management, how much are the brokerage fee and the monthly management fee?
A：When a tenant moves in, the brokerage fee is generally “one month’s rent plus tax.” Management fees vary depending on the property and scope of services, but typically range from 1.5% to 3%–5% per month. Please feel free to consult us. In recent years, many clients have requested switching management companies. At our firm, we clearly explain the breakdown of costs in advance so that you can entrust us with peace of mind.
Q：Can the rent be reliably collected?
A：At SIMCITY, we also provide rent guarantee and payment management services, so you can have peace of mind.
Q：What happens when a tenant moves out?
A：We can handle everything from arranging restoration work to recruiting new tenants in one package.
Q：Is it possible to sell a property as well?
A：Yes, selling is also possible. We provide full support from appraisal and marketing activities to contract and settlement. We also handle purchase consultations with a focus on speed. With our network of clients who “want to buy” or “want to rent,” we specialize in early sales.
Q：What should I do with inherited real estate?
A：We have professional staff and advisors, so consultations on inheritance and taxation are also possible. SIMCITY works in cooperation with specialists such as legal and tax professionals, and can present options for selling, operating, and managing properties.