Rental Contract Process and Required Documents: Fees, Lease Types, and Key Steps

When renting a property, it is important to understand the type of contract, the process, and the required documents in advance. This article provides a comprehensive explanation of the differences between standard lease contracts and fixed-term lease contracts, the contract process, and the breakdown of upfront costs.

What is the difference between a standard lease contract and a fixed-term lease contract?

Item	Standard Lease Contract	Fixed-Term Lease Contract
Contract renewal	Can be renewed at the tenant's request	In principle, renewal is not allowed
Contract term	Typically 1 to 2 years	Freely set by the landlord
Rent level	In line with market rates	Tends to be more affordable
Mid-term cancellation	Subject to special provisions	For residential units under 200 m², possible if there are unavoidable circumstances

What is the rental contract process (7 steps)?

1. Confirm your conditions：layout, rent (a guideline is one-third of monthly income), area, building age, etc.
2. Search for properties：compare online listings and real estate agencies
3. View the property：check facilities and the surrounding environment in person
4. Apply and undergo screening：submit the application form, proof of income, and application payment
5. Important matters explanation：receive a detailed explanation of the property from a licensed real estate transaction specialist
6. Sign the contract and pay upfront costs：sign and stamp the lease agreement and make the required payments
7. Handover and move-in：receive the keys and complete utility procedures

What kinds of upfront costs are involved in a rental contract?

• Key money：1 to 2 months' rent (not refundable when moving out)
• Security deposit：1 to 2 months' rent (remaining balance refunded at move-out)
• Brokerage fee：the upper limit is 1 month's rent + consumption tax
• Fire insurance premium：about JPY 10,000 to 20,000
• Guarantee company fee：0.5 to 1 month's rent
• Prepaid rent：for the move-in month (+ prorated amount)

Which points should you check especially carefully during the important matters explanation?

• Cost-related items (such as key replacement fees and cable TV fees)
• Responsibility for equipment repairs (whether the tenant or the management company bears the cost)
• Infrastructure (city gas or propane gas, and internet environment)
• Cancellation terms (the deadline for notifying move-out timing)
• The share of restoration costs（confirm whether any special provisions apply）
• Prohibited matters (musical instruments, pets, etc.)
• Check the hazard map

Frequently Asked Questions (FAQ)

Q. How can I reduce upfront rental costs?

Choosing a property with no key money, negotiating the brokerage fee, and using properties that include free rent periods can all be effective.

Q. Can anyone use IT重説?

Yes, if the real estate company supports IT重説. You should confirm this in advance and prepare a web meeting tool.

Q. What should I do if I do not have a guarantor?

By using a guarantee company, more properties can be rented without a joint guarantor. As a guideline, the guarantee fee is about 0.5 to 1 month's rent.