Real Estate Japan | Tokyo, Osaka, Nagoya Properties For Rent & Sale

In Japan when securing a rental lease through a real estate company, new terms tend to pop up that you might not have seen anywhere else. “Key money” and “Agency fee” are two such examples and here I will deal with the “Agency fee” and how it can benefit you.

First, let’s cement up some things you have probably heard about the Agency fee. Yes, it is a non-refundable expense you pay in order to get an apartment. Yes, it is basically for the realtor’s time spent searching for prospective apartments for you, taking you to see them, negotiating the terms and securing the lease for you on the apartment you have chosen. Yes, it is usually equal to 1 month’s rent based on the apartment you choose. No, it is not the same as key money.

Sure there are places out there that offer no agency fee deals in the ￥70,000 – ￥100,000 price range. These locations tend to be furnished but small apartments though if you are looking for a short term stay (anything less than 6 months) then this is the way to go. Outside of this budget, if you are not willing to pay an agency fee then your options become severely limited in terms of selection you have available as 90% f apartments in Tokyo require this expense.

Who gets the agency fee? The answer is your real estate agent. That person who sorted through hundreds of available floor plans looking for apartments to try to suit your needs. That person who then called around and organized the keys for each apartment you wish to see and then taking you to see it, along the way telling you about the area you happen to be in at that time. That person who then negotiated the procurement of the lease for the apartment you chose. The agency fee is payment for a professional service that helps you secure the most fundamental aspect of your life wherever you are…the four walls around you.

However, the above is a very rosy picture. The reality in Tokyo is that there are very few real estate agencies out there that can offer foreign people a truly professional level of service and very often paying an agency fee can leave a bitter taste in one’s mouth given the lower-than-expected level of service clients sometimes receive.

Common places for disappointment when looking at apartments is the quality of places foreign people are shown. Many times people see apartments that are nowhere near their ideal floor plan or location. Many times people are shown apartments that are too expensive. Many times people have initiated an application process only to find that no foreign people are allowed (more on this one to be discussed in a later blog so stay tuned). These are all examples of an agent who was not listening properly to your needs and desires and in the case of “no foreign people” this is an example of the agent not performing any due diligence.

If your agent is showing you apartments that are within your budget, space and locations needs, then that is a very big sign that the agent listened properly when you initially told them what you wanted. This kind of agent deserves your trust at this point because if within a week of contacting that particular agent, if you have 2 or 3 apartments all within the specs that you can choose from, that means that agent has worked his tail off to source these places for you and will do their best to get you into the apartment you choose. This kind of agent truly deserves your agency fee.

Key money can easily be considered money down the toilet but the agency fee, paid only after all the hard work is done and you are about to get your keys is fair to pay as long as you, the client, find an apartment that you are looking for that satisfies your needs and desires.  Check our tips for renting in Japan for more help.

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