Using Japanese real estate agencies

Advice on using real estate agents in Japan

If you are looking for long term accommodation in Japan, there are various ways to go about your search for the ideal apartment or house. Searching through one of the local real estate agents, although sometimes difficult, can often get you some great deals. When using a real estate agent there are several things to remember that can greatly improve your chances of finding the ideal apartment or house.

Although English speaking ability can hamper your chances, it many cases it is not essential that you speak Japanese. Many of the agencies do not have English speaking staff, but if you present yourself well and have someone who speaks Japanese to assist you, in most cases you will not be refused outright due to lack of language ability.

Some of the most common causes for foreigners being refused are 1) because of the perceived lack of cultural understanding when it comes to being courteous to your neighbours (i.e. foreigners party too much and can potentially cause trouble for other tenants) and 2) many tenants believe foreigners either cannot or do not understand how to separate their garbage correctly and place it in the appropriate place on the designated day. Letting the real estate agent know they have nothing to worry about on these two points can sometimes make a big difference.

Types of real estate agents in Japan
There are a variety of real estate agents in Japan but the two main types are the small, local agents in suburban areas which are often family run, and the larger agencies which have outlets in many locations.

Local real estate agencies
There are advantages and disadvantages to using local real estate agencies and the service can be from exceptional to terrible depending on the particular agent. You can occasionally find great deals through the local agencies because there are less places available and not as many people going to view them. Another positive is that much of the information at the smaller real estate agents will never be found on the internet because many of these places are family run businesses and often they are the only ones with access to the information.

Large real estate agencies
An advantage of using the larger agencies is that they have computer systems which can access a lot of information quickly and you usually get a generically high standard of service. The staff is also usually fairly professional and up-front. One disadvantage is that the service can be a little aggressive and they may try to sign you on the day you go in.

Points to remember when using real estate agents
Some of these may be common sense but are often overlooked by people when looking for an apartment.

1) Get information from a number of different real estate agents. Don’t decide by just looking at one place.

2) View places by yourself as often as possible. You shouldn’t overuse the real estate agent and see as many places as possible by yourself. You should also refrain from using the real estate agent’s car too much because they will pick the best time of day to look at the apartment. Going by yourself using the method of transport you will use on a daily basis is important so you can gauge how long it will take you to get there. Many places in Japan are further away from the station than stated on the provided documentation, so you should time your walk from the station.

Real estate agents do not like being overused either. If you use a real estate agent on a regular basis and still haven’t made a decision after viewing 15-20 places, they will begin to tire of you and their service will reflect this.

3) Don’t go back to their offices after viewing the place. After they show you the place, you should then leave the real estate agent and politely decline not to go back to their offices. Many will try to take you back to talk you into negotiations. If you are interested in the property, you should instead take the time to look around the surrounding area and make a checklist of things which are important to you (e.g. is it close to shops, hospital, sports facilities etc).

4) Keep up regular communication with your real estate agent. Especially in Japan, real estate agents value customers who keep in regular contact. If you are not interested in a property, make sure you tell the real estate agent as soon as possible. This makes their job easier and they will have a higher opinion of you.

5) Sleep on it. Once you find a good place, make sure you sleep on it and call the next day instead of rushing out to sign the contract on the spot.

6) Don’t give a specific time frame
If asked by the real estate agent when you are moving, never give them a specific time frame, otherwise they will limit their search for places that are immediately available.

7) Make friends with your real estate agent
Make sure you use proper language, dress properly and act appropriately around the real estate agent, because if they don’t take a liking to you they will immediately make a judgment about you and your personality and may not introduce you to places where they think you could potentially cause trouble. In particular, if you are looking for a place in a classy part of town such as Aoyama with high rent, they may not introduce you certain places even if you have the money if they perceive you as a potential trouble maker.

Strategies that Real Estate Agents will use
From an owners point of view a good real estate agent will use several strategies to get people to sign off quickly on an apartment. For example, they may tell you that they had three other people look at the apartment yesterday, and if you really are interested you had better sign the contract today otherwise you will lose it. This could be true, but in many cases they are overstating the facts and you should be aware of this.

Alternatives to regular Japanese rental brokers
There are many good alternatives to regular Japanese real estate agencies such as the government owned housing projects such as Urban Renaissance Agency (UR) or ‘Koudan’ housing, which is owned by the prefectural governments. UR focuses more on newer, higher-priced housing which offers a new style of modern housing at reasonable prices. Koudan is based on a lottery system and is more focused on budget housing for families. Although it can be more difficult to get into these places, they offer great advantages such as no gift money and high quality housing. In the case of ‘Koudan’ housing, you are not required to pay an extension fee either.