How to Rent Your House in Japan

This is only one example.

The basics
House Insurance
Mortgage costs
House Tax
Rental Income Tax
Rental Agency fees
General Maintenance Costs
Renewing Fees

Rental Agency Contracts:
1 month’s rent & 5% of monthly rent. (If unoccupied, the agency will pay for up to 3 months rent.)
1 month’s rent & 7% of monthly rent. (If unoccupied, the agency will pay for up to 6 months rent.)
1 month’s rent & 20% of monthly rent. (If unoccupied, the agency will cover the rent regardless of time.)
Renewing fee of half a months rent.  (The owner gets the other half.)
When the house is empty you don’t have to pay the agency a monthly rate.

Renter Contracts:
Renewable contract every 2 years.  1 months renewing fee.  The renter decides to renew or not.
Renewable contract every 5 years.  1 months renewing fee. The owner decides whether to renew with the renter if they want to continue renting. (10% cheaper monthly rent because the contract is longer ensuring guaranteed income).

Renter’s Costs:
1 Months gift money that goes to the rental agency
2 Months damage deposit
1 Month rent
1 Months rent to renew the contract

Management Duties
Management: Find renters
Maintenance: Call Plumbers, Electricians, etc… and send you a bill
Evicting if necessary: maximum 6 Months

House Maintenance every 15 years:
New Kitchen: 300,000
New Bathroom: 300,000
New Roof: 500,000

Caution: Interest Rate Change
If you are leaving the country or the mortgage is based on you living in the house, you may need to inform the bank where you got your mortgage.  This means that you might have to pay more interest on your mortgage, thus increasing your monthly mortgage costs that will bite into your monthly renting income.

Loop Hole
You can, however, go away on a business trip for 3 years.  (Proof is required.) This means you can keep the same interest rate but you must return after 3 years or your interest rates will change to the higher rate.  As for the period you have to live in Japan after you have left for 3 years before you return back to your home country is yet to be discovered.


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