UR rental housing is known as rental housing that does not require key money, brokerage fees, renewal fees, or guarantors. While it is easy to keep initial costs low and the longer you live in a home, the cost benefits become more apparent, but not everyone can apply freely.
UR Urban Renaissance Agency has established multiple conditions such as the applicant's income, nationality/residence status, range of cohabitants, period of move-in, and not being an anti-social force. Even if you do not meet the conditions, there are cases where you can use the lump-sum payment system, savings-based system, or income-based special exceptions.
In this article, we will organize the occupancy conditions for UR rentals according to official information, explain the differences when compared to private rentals, and explain the points that real estate agents can learn.
What is UR rental?
UR rental housing is rental housing managed and provided by the Urban Renaissance Agency (UR Urban Renaissance Agency), an independent administrative agency. The range of properties ranges from large-scale housing complexes, including former public housing, to high-rise residential buildings near stations, and renovated properties.
The main difference from private rental is the cost structure at the time of contract.
| Item | UR rental | General private rental |
|---|---|---|
| Key money | Not required | Necessary property available |
| Brokerage fee | Not required | Usually 0.5 to 1 month's rent |
| Renewal fee | Not required | Depends on region/contract |
| Guarantor | Not required | Guarantor company/guarantor is often required |
| Income screening | Clear based on UR standards | Varies depending on landlord/guarantor company |
There is no need for a guarantor, but standards regarding the applicant's income and savings are clearly set. If you only look for properties without understanding this, even if you find a room you like, you will stop at the application stage.
Overall picture of application qualifications
The UR official website mainly lists the following conditions as application qualifications.
| Conditions | Contents |
|---|---|
| Income | The applicant's average monthly income must be greater than or equal to the standard monthly income |
| Nationality/Residence Status | Japanese nationality or foreign nationality with the qualifications specified by UR |
| Purpose of residence | Requires continuous housing |
| Living together | Living alone or having relatives living together or planning to live together |
| Move-in period | Must be able to move in within one month from the move-in start date |
| Life/Anti-Social Requirements | Must be able to live harmoniously together and not be a member of an organized crime group |
Additionally, your application or contract may be declined if you have unpaid amounts owed by Urban Renaissance Agency, or if you have committed past contract violations such as nonpayment of rent, nuisance to neighbors, or breeding of animals at UR Housing.
Income standards vary depending on rent amount and household classification
The income standard for UR rental varies depending on the rent amount. According to official information, the standard monthly income amount is divided for household applications and single-person applications.
| Classification | Rent amount | Standard monthly income amount |
|---|---|---|
| Household | Less than 82,500 yen | 4 times the rent amount |
| Household | 82,500 yen or more but less than 200,000 yen | 330,000 yen |
| Household | 200,000 yen or more | 400,000 yen |
| Single person | Less than 62,500 yen | 4 times the rent amount |
| Single | 62,500 yen or more but less than 200,000 yen | 250,000 yen |
| Single | Over 200,000 yen | 400,000 yen |
Average monthly income is calculated by dividing the past year's total amount of income that is deemed to continue in the future, such as salary income, business income, real estate income, pension, etc., by 12. It is also important that the income is taxable and can be proven.
For example, if a household applies for a housing unit with a rent of 80,000 yen, the standard monthly income is 4 times the rent, or 320,000 yen. If you are single and apply for a housing unit with a rent of 80,000 yen, the fixed standard for singles applies, and the standard is 250,000 yen.
Alternative system if income standards are not met
Just because you don't meet the income criteria doesn't mean you can't apply. UR has special provisions for the lump-sum payment system, savings-based system, and income-based system.
Lump-sum payment system for rent, etc.
This is a system in which rent and common area fees are paid in advance for a certain period of time. There are no income requirements when using this system. This is a system where you can choose a one-year lump-sum payment period within the range of 1 to 10 years, starting from the month following the month in which you can start moving in.
However, there are restrictions on early termination, so those who are expected to relocate or change their family structure should consider this carefully.
Savings standard system
This is a system that can be applied in place of the income requirement if the applicant's savings amount is 100 times or more the monthly rent. If the rent is 60,000 yen, the standard savings amount is 6 million yen.
This is something to consider for seniors after retirement, those with assets but low monthly income, and freelancers whose income fluctuates from year to year.
Special provisions for income standards
If the applicant's income and savings are more than half of the standard, you may be able to apply by combining the income of relatives who live together, rent supplements from relatives or work, or combining savings. Certain exceptions are also available for the elderly, people with disabilities, single-parent households, and students over 18 years of age.
Application qualifications for foreign nationals
Foreign nationals can also apply if they meet the qualifications set by UR. According to the official information, the applicant must be able to fully understand the contents of the Urban Renaissance Agency rental housing rental contract and fall under any of the following:
| Category | Contents |
|---|---|
| Permanent Resident/Diplomatic/Official | Those whose residence status is Permanent Resident, Diplomatic, or Official |
| Special permanent residents | Special permanent residents |
| Mid- to long-term residents | Mid- to long-term residents under the Immigration Control Law |
Those who are staying in Japan for the first time or for a short period of time may not meet the requirements. If you are a foreign resident, it is a good idea to check your residence card, status of residence, and language support to understand the contract details.
Range of cohabitants and move-in period
In UR rental, the basic requirement is to live alone or with relatives. The scope of relatives includes a spouse, a person in a de facto marital relationship, a fiancé who will be married within 6 months, blood relatives within the 6th degree of kinship, and relatives by marriage within the 3rd degree of kinship.
Another condition is that all members of the same household, including the applicant, be able to move in within one month of the move-in start date set by UR. Popular properties fill up quickly once vacancies become available, so you need to know when you will be moving, notice to move out, moving costs, and required documents before applying.
Advantages and points to note when compared to private rental
The biggest appeal of UR rental is that initial costs and renewal costs are easy to read. Since key money, brokerage fees, renewal fees, and guarantors are not required, it is easier to reduce the total cost for long-term residence.
On the other hand, there are some aspects that are less flexible than private rentals. Income and savings standards are clear, and depending on the property, the rent may seem higher than the surrounding market price. There is competition for vacancies in popular areas, so the timing of your application is also important.
| Suitable for | People who need attention |
|---|---|
| People who want to reduce initial costs based on long-term residence | People who are likely to relocate in the short term |
| People who have difficulty finding a guarantor | People who have difficulty proving their income |
| People who want to live stably without renewal fees | People who only value the latest facilities and relatively new construction |
| People who can tolerate housing complex-type communities | People who prioritize freedom of property selection |
What real estate businesses can learn from UR
UR rental is a competition for private rental owners, and at the same time there are many things to learn from them. No key money or renewal fees, no guarantor required, clear move-in standards, and easy-to-understand rules for moving out give residents a sense of security.
There is no need to simply adopt the same conditions for private rentals. However, when considering measures to deal with vacancies, simply making the initial cost visible, explaining the screening criteria, and making the moving-out cost transparent can reduce the anxiety of prospective tenants.
I also want to read
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- What is the difference between restoration to original condition, restoration to original condition, and restoration to status quo? Practical explanation for management staff to use correctly
- Importance of integrated management and intermediary operation to improve occupancy rate
Frequently asked questions
Q. Is a guarantor really necessary for UR rental?
Not necessary. However, instead, there are clear standards regarding income and savings. No guarantor required and no examination required do not mean the same thing.
Q. Can I apply for UR rental even if I am a foreign national?
You can apply if you meet the qualifications stipulated by UR, such as permanent residents, diplomats, official residents, special permanent residents, and medium- to long-term residents. Cases such as short-term stays may not be covered.
Q. If I don't have enough income, do I have no choice but to give up?
You may be able to use special provisions for the lump-sum payment system, savings-based system, and income-based system. Please check not only your income, but also your savings, relatives living with you, and whether you have any rent supplements.
Q. Is UR rental always cheaper than private rental?
If you only look at the monthly rent, it is not always cheap. It is important to compare the total cost for the entire tenancy period, including the fact that key money, brokerage fees, and renewal fees are not required.
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