Thursday, October 11, 2012

Why Japan is so strict on leasing apartments ? Real Estate Japan ...

Why Japan is so strict on leasing apartments?Previously we looked at tips for making the renting process in Japan go a little more smoothly. However, as any one who has gone through the experience can tell you, there are still additional difficulties often faced. One of the biggest of those being why are Japanese property managers so strict before renting an apartment and why do they seem to be reluctant to rent to foreign people?

To address the first issue, why they are so strict, we have to look back to the end of World War II. Japan was in ruins and living space was in short demand. The remaining buildings that were livable were capitalized heavily by landlords by charging ?Reikin? (key money) to prospective tenants. With housing in short supply, there was no shortage of tenants willing to pay reikin.

As Japan rebuilt itself, the government realized that a thriving economy can?t be rebuilt without the common man having stable living arrangements. Hence the government stepped in to stop this exploitation by creating tenant laws that very much favor the occupants rather than the landlord.

This put tenants in a very strong position. Hypothetically, once a tenant signed a lease agreement and then decided to not pay rent, it would take a landlord anywhere between 4 ? 6 months to legally evict a non-paying tenant. Landlords now had to obtain government permission to serve a first warning to a non-paying tenant, wait a month, go back to the government to serve a second notice, wait another month, then go back to the government for a third notice, wait another month, then finally receive permission to formally evict the non-paying tenant. During this whole process, the non-paying tenant is living on the premises for free.

In response to these new laws, landlords and property managers had no choice but to do everything they could to make sure the person applying to rent their apartment is as risk free as possible. This is why landlords and property managers want to see income details, letters of employment, need a guarantor, etc? Once you?re in the apartment, then you?re in.

In the case of reluctance to rent to foreigners, Japanese landlords have the added fear that a foreign resident of Japan may simply leave the country without a word to anyone, leaving them powerless to reclaim their losses as they might with a Japanese citizen.

Another fear amongst both agents and land owners in Japan is communication. Real estate agents in Japan are bound by laws to make sure you understand everything about the apartment you?re renting. If for example, an apartment is taken on a non-renewable 1-year contract and your non-English speaking agent doesn?t make this point clear before you sign the lease, a tenant is within his/her rights to sue.

All properties listed on realestate.co.jp are open to foreigners and there will always be an English-speaking staff member to ensure that both sides understand the situation when renting.

Tokyo Apartments For Sale | Tokyo Apartments For Rent | Real Estate Japan

Source: http://www.realestate.co.jp/2012/10/11/why-japan-is-so-strict-on-leasing-apartments/

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