Renting in Japan: SIM Cards & Banking for Foreigners

Settling in Japan: A Foreigner's Guide to Renting, SIM Cards & Banking.

Akash Answers Your Biggest Questions on Renting, SIM Cards and Banking.

"Aapka Sawal, Akash ka Jawab" (Your Question, Akash's Answer)

Namaste dosto! Akash here, your very own ‘Indori in Japan’. Bahut saare DMs aur comments aate hain, but ek sawal hai jo har naye bande ke dimaag mein hota hai: ‘Akash bhai, Japan mein ghar kaise rent karein? Aur aate hi phone-internet ka kya scene hai?’ So I thought, chalo, let’s make the ultimate guide.

Jab main pehli baar yahan aaya tha, I was just as clueless. It felt like a video game where nobody tells you the rules!. After years of navigating the system, making mistakes, and finally figuring things out, I’ve compiled this cheat sheet for those planning to make Japan their new home. This isn’t just a blog post; it’s your survival guide. We’ll cover everything from finding a flat to getting a SIM card, all based on my experience. Tension mat, lo, you’ve got this!

Part 1: Finding Your "Ghar" in Japan: The Ultimate Guide to Renting an Apartment in Japan

The Reality Check – Japan’s Rental Market is a Whole New Ball Game, Dost!

Before you start dreaming of a cozy apartment with a view of Tokyo Tower, let’s get real. Renting in Japan is very different from renting in India, and for foreigners—or gaijin, as we’re called here—it comes with its own unique set of challenges.

The “Gaijin” (Foreigner) Challenge

Let’s be upfront: it can be tough for foreigners to rent an apartment here. It’s not always personal, but many landlords, especially older ones, are hesitant. A 2021 survey revealed that over 40% of landlords who refuse foreign tenants do so because of “anxiety over communication and cultural differences”. Another study found that nearly 40% of foreigners looking for housing had been rejected simply because they were foreign. This reluctance often stems from a fear of misunderstandings about things like garbage disposal rules, noise levels, or the risk of a tenant suddenly leaving the country. The entire rental system, with its layers of agents and guarantor companies, is built to minimise this perceived risk. But don’t get discouraged! This is a known hurdle, and there are clear strategies to overcome it by building trust and showing you’re a reliable tenant.

Key Differences from India

Unfurnished is the Norm: Back home, “semi-furnished” is common. Here, most apartments come completely empty. That means you’ll need to buy your own furniture, refrigerator, washing machine, and often even lighting fixtures and curtains.
Agents are Non-Negotiable: You can’t just find a “To Let” sign and call the owner. You almost always have to go through a real estate agency, known as a fudosan-ya. They are the essential middlemen between you and the landlord.
The Guarantor System: This is probably the biggest obstacle. In Japan, you need a guarantor (hoshōnin) who is financially responsible if you fail to pay rent. Since most of us don’t have a Japanese relative to co-sign, we have to use a guarantor company (hoshō gaisha), which acts as an insurer for a fee.

Strict Rules: Japanese rental agreements are very specific. There are often strict rules about pets, noise levels, how and when to dispose of garbage, and even something as simple as putting a nail in the wall.

The Money Talk – Decoding the Hefty Initial Costs

The biggest shock for most newcomers is the upfront cost, or shoki-hiyō. Be prepared to pay anywhere from 4 to 7 times your monthly rent before you even get the keys. So, for an apartment with a monthly rent of ¥100,000, you could be looking at an initial payment of ¥400,000 to ¥700,000. It’s a lot, so let’s break down where that money goes.

Security Deposit (Shikikin): Typically 1-2 months’ rent. This is refundable at the end of your lease, but deductions will be made for cleaning fees and any damages beyond normal wear and tear.
Key Money (Reikin): This is the weirdest one. It’s a non-refundable “gift” to the landlord, usually 0-2 months’ rent. It’s a tradition, and there’s no getting it back. Thankfully, many foreigner-friendly properties and alternatives like UR Housing have done away with this fee.
Agency Fee (Chukai Tesuryo): This is the commission you pay to the real estate agent for their services. It’s usually 0.5 to 1 month’s rent, plus tax.
Guarantor Company Fee (Hoshō Gaisha Riyō-ryō): The fee for the company acting as your financial guarantor, typically 0.5 to 1 month’s rent.
First Month’s Rent (Mae Yachin): You’ll pay the first month’s rent in advance. If you move in mid-month, this is often prorated.
Other Fees: Expect to pay a Lock Exchange Fee (kagi kōkan-hi) of around ¥10,000-¥20,000 for your security and mandatory
Fire/Renter’s Insurance (kasai hoken).

A crucial point to remember is the income rule: agencies and landlords will generally require that your monthly rent is no more than 30-35% of your gross monthly income. If you don’t meet this threshold, your application will likely be rejected.

To make this crystal clear, here’s a sample breakdown for an apartment with a monthly rent of ¥100,000.

Fee (Japanese Term)	Typical Cost (Months of Rent)	Sample Cost (Yen)	Notes
Security Deposit (Shikikin)	1 month	¥100,000	Refundable (minus costs)
Key Money (Reikin)	1 month	¥100,000	Non-refundable gift
Agency Fee (Chukai Tesuryo)	1 month + tax	¥110,000	Payment to the agent
Guarantor Fee (Hoshō Gaisha)	0.5 months	¥50,000	For the insurance company
First Month's Rent (Mae Yachin)	1 month	¥100,000	Paid in advance
Lock Exchange Fee	Flat Fee	¥20,000	For your security
Fire Insurance	Flat Fee	¥20,000	Mandatory
Total Estimated Initial Cost	~5 months	¥500,000	This is why you need to save!

Your Apartment Hunt Masterplan: A Step-by-Step Guide

The rental market for foreigners is not one-size-fits-all. It’s segmented. You can choose a full-service, hassle-free route that costs a bit more, or a do-it-yourself approach that requires more effort but might save you money. Here’s how to navigate it.

Step 1: Define Your Priorities (The Brainstorming Phase)

Budget: First, calculate your maximum monthly rent using the 30% rule.
Location: Research neighbourhoods. Think about your commute to work or university. A longer commute might mean cheaper rent, but it also costs time and money. Getting a bicycle can open up areas that are a bit further from a station, giving you more options.
Apartment Lingo: Get familiar with the terms. Room layouts are described with abbreviations like 1R (a single room studio), 1K (one room with a separate kitchen area), 1DK (one room with a dining and kitchen area), and 1LDK (a bedroom plus a separate living, dining, and kitchen area). Room size is often measured in
jō (帖), the size of one tatami mat (about 1.65 square meters).
Make a List: Divide your needs into “must-haves” (e.g., within 30 minutes of work, pet-friendly) and “nice-to-haves” (e.g., new building, separate toilet and bath).

Step 2: The Online Search (Your Digital Window Shopping)

Start your search on websites designed for foreigners. They filter out many of the properties where landlords won’t rent to non-Japanese people.

Top Foreigner-Friendly Portals: Say Goodbye to Reikin! How to Find Apartments Without Key Money

One of the biggest financial hurdles when renting in Japan is “reikin” (礼金), or “key money.” This is a non-refundable, one-time payment made to the landlord as a “gift” or “thank you” for letting you rent their property. It can be a significant upfront cost, often equal to one or two months’ rent, and you don’t get it back when you move out.

The good news? The rental market is changing, and it’s now easier than ever to find great apartments that don’t require this fee. Here are the best resources to help you find a place without breaking the bank on reikin:

UR Housing (Urban Renaissance Agency): This should be your first stop. UR apartments are publicly managed and famously do not require key money, agent fees, or even a guarantor. This can save you a huge amount on initial move-in costs.
- Link: https://www.ur-net.go.jp/chintai/e/
GaijinPot Apartments: A go-to resource for foreigners, GaijinPot has a powerful search filter that lets you specifically look for apartments with “No Key Money.” This is a fantastic way to quickly narrow down your options on a platform designed with foreigners in mind.
- Link: gaijinpot.com
Sakura House: Specialising in furnished apartments, share houses, and guesthouses for the international community, Sakura House does not require key money, agent fees, or a guarantor. This makes the entire move-in process much simpler and more affordable.
- Link: https://www.sakura-house.com/en
Wagaya Japan: This real estate portal is another excellent resource for foreigners. It features a “No Key Money” filter in its search options, helping you easily find properties that fit your budget and eliminate that extra expense.
- Link: https://wagaya-japan.com/en/rent/tokyo/list/?room_stb=70
Leopalace21: A major player in the Japanese real estate market, Leopalace21 often runs campaigns and special promotions that waive the key money requirement. Keep an eye on their website for these deals, especially if you’re looking for furnished apartments with flexible contract options.
- Link: https://en.leopalace21.com/

The DIY Approach:

SUUMO and LIFULL HOME’S: These are the biggest real estate portals in Japan, with millions of listings. If your Japanese is good or you’re using a browser translator, you can find great deals here. However, be prepared for many listings to be unavailable to foreigners.

Step 3: Finding Your Agent (Your Most Valuable Player)

A good agent is your biggest ally. They can advocate for you, help you navigate the paperwork, and even persuade a hesitant landlord to accept you.

How to Find One: The portals listed above are the best place to start. You can also look for agencies that specialise in helping foreigners, like Plaza Homes or Blackship Realty.
The First Meeting: The agent will ask about your visa status, job, salary, and Japanese language ability. Be prepared with your documents and be professional. First impressions are critical. Showing up late or dressed too casually can be a red flag for them.

Step 4: The “Naiken” (Property Viewing)

Once you’ve shortlisted some properties, your agent will schedule viewings (naiken).

Viewing Checklist:

Pay attention to natural light and noise levels from nearby trains or traffic.
Confirm exactly which appliances are included (usually, it’s just the stove and air conditioner).
Check for storage space, as Japanese apartments are notoriously small.
Look at the building’s shared facilities, like the garbage disposal area and bicycle parking.
Ask about earthquake safety. Buildings constructed after 1981 follow stricter seismic codes. Steel-reinforced concrete structures are generally safer than older wooden ones. But for safety purposes, steer away from anything older than 30 years.

Step 5: The Paperwork “Agni Pariksha” (Trial by Fire)

Found a place you love? Great! Now comes the screening process, which can take anywhere from three days to two weeks. You need to submit your documents quickly, as apartments are first-come, first-served.

Required Documents:

Personal ID: A copy of your passport and both sides of your Residence Card (Zairyu Card) are non-negotiable. If you’ve just arrived and only have a Certificate of Eligibility (COE), your options will be more limited, as many landlords require the actual visa or Residence Card.
Proof of Income: You’ll need an Employment Certificate (Zaishoku Shōmeisho) from your company, recent pay stubs (Kyūyo Meisai), or your annual tax withholding slip (Gensen Chōshūhyō).
Guarantor Documents: If you’re using a guarantor company, you’ll fill out their application.
Emergency Contact: You must provide a contact person in Japan. Some guarantor companies require this person to be a Japanese citizen.

Akash's Pro-Tips for a Winning House Hunt

Dress to Impress: When meeting a real estate agent, wear a suit or business casual attire. In Japan, this signals that you are a responsible professional and a low-risk tenant.
Punctuality is Everything: Always be on time for your appointments. It reinforces the impression that you will also be on time with your rent payments.
Find Your Community: If you’re looking for a taste of home, some areas have large Indian communities. Nishikasai in Tokyo, for example, is known as “Little India” and is full of Indian grocery stores, restaurants, and support networks.
Time Your Search: The best time to start looking for an apartment is about one to two months before you plan to move. Any earlier, and the properties you want won’t be available yet. Any later, and you’ll be rushing through the paperwork.
Bring a Friend: If your Japanese isn’t fluent, bring a Japanese-speaking friend or colleague to your viewings and especially to the contract signing. They can help clarify confusing terms and prevent future misunderstandings.

Part 2: Your Complete Guide to Getting a SIM Card in Japan

Once you have a place to live, your next priority is getting a phone and internet. Here’s how to get connected without the stress.

SIM Card 101 – Choosing Your Plan of Attack

This guide is for those of us living here long-term. While a tourist SIM is fine for a short trip, it’s not a practical or cost-effective solution for residents.31

The Main Choices:
Data-Only vs. Voice + Data: While a data-only SIM is cheaper, you will almost certainly need a Japanese phone number (which comes with a Voice + Data plan) for nearly everything official: opening a bank account, signing an apartment lease, and other contracts. You can make calls on apps like WhatsApp with a data-only SIM, but you can’t receive official verification calls or texts.
Physical SIM vs. eSIM: An eSIM is a digital SIM that’s built into your phone. It’s super convenient because you can activate it online without waiting for a physical card to arrive. However, you must have a compatible, unlocked phone.
Phone Compatibility: This is critical. Your phone from India must be unlocked to use a Japanese SIM card. It also needs to be compatible with Japanese mobile frequency bands to get good reception, especially outside of major cities.

The "Big Players" vs. The "Budget-Friendly" – A Head-to-Head Comparison

Japan’s mobile market has three main tiers.

Tier 1: Major Carriers (The “Big 3”): NTT Docomo, au (by KDDI), and SoftBank. They offer the best network coverage and have physical stores for support, but they are the most expensive and often lock you into two-year contracts.
Tier 2: Online-Only Subsidiaries (The “Smart Buys”): Ahamo (from Docomo), LINEMO (from SoftBank), and povo (from au). These are the sweet spots. They offer fantastic data plans at much lower prices (e.g., Ahamo gives you 20GB for around ¥2,970) and use the same high-quality networks as their parent companies. The catch is that support is almost entirely online and in Japanese.
Tier 3: MVNOs (Mobile Virtual Network Operators): These are smaller companies that rent network space from the Big 3.

Foreigner-Focused MVNOs: Companies like Sakura Mobile, Mobal, and GTN Mobile are lifesavers for newcomers. Their main advantage is full English support, the ability to apply from overseas, and flexible payment options (including foreign credit cards). They are slightly more expensive, but the convenience and peace of mind are often worth it when you’re just starting out.
Other Popular MVNOs: Rakuten Mobile is a game-changer, acting as Japan’s fourth major network with incredibly competitive, simple pricing. IIJmio and UQ Mobile are also popular, reliable, and affordable choices once you’re settled.

To help you decide, here’s a comparison of the most popular options for long-term residents.

Provider	Network	Typical Plan (e.g., ~20-30GB)	English Support	Payment Methods	Best For...
Ahamo	Docomo	20GB for ¥2,970	Online Only (Japanese)	JP Credit/Bank Card	Long-term value, great data
LINEMO	SoftBank	20GB for ¥2,728	Online Only (English)	JP Credit/Bank Card	Heavy LINE app users
Rakuten Mobile	Rakuten/au	Unlimited for ¥3,278	Yes (English)	JP Credit/Debit/Bank	High data users, good value
Sakura Mobile	Docomo	Voice+Data from ¥2,980	Full English	Foreign CC accepted	New arrivals, zero hassle
Mobal	SoftBank	30GB for ¥4,378	Full English	Foreign CC, PayPal	New arrivals need a number fast
GTN Mobile	Docomo/SoftBank	Plans from ¥1,200	Multilingual	Varies	Budget-conscious with support

The "Kaise?" and "Kahan?" – How and Where to Get Your SIM

There’s a bit of a Catch-22 when you first arrive: you need a Japanese phone number to get an apartment, but you need a Japanese address to get a long-term phone contract. The solution is a two-stage strategy.

Stage 1: Immediate Arrival (Day 1 Connectivity)

Order Online in Advance: The smartest move is to order a SIM card from a company like Mobal or Japan Experience before you even leave India. You can have it delivered to the airport (Narita, Haneda, etc.) for pickup right after you land. This ensures you have Google Maps and WhatsApp working from minute one.
Buy at the Airport: Alternatively, you can buy a prepaid SIM from counters like JAL ABC at the airport, but these tend to be more expensive and offer less data.

Stage 2: The Long-Term Contract (After You’re Settled)

Once you have your apartment and have registered your address at the local ward office, you’ll receive your Residence Card (Zairyu Card). This is the golden ticket.
Essential Documents: To sign a long-term contract, you will need your Residence Card, your passport, and a Japanese payment method (usually a Japanese bank account or credit card).

Where to Apply:

Online: This is the easiest way for most MVNOs and the online-only brands like Ahamo and LINEMO.
In-Store: Large electronics stores like Bic Camera and Yodobashi Camera have a wide selection of SIMs and can even help you with the setup for a small fee. The Big 3 carriers also have their own shops everywhere.

Akash's Final Verdict on SIMs

The “best” SIM card depends on who you are and what you need.

For the Student on a Budget: “Start with a Mobal or Sakura Mobile plan for the first month to get you settled. Once you have your Japanese bank account and Residence Card, switch to Rakuten Mobile or LINEMO. They offer the best bang for your buck. Sabse sasta aur best!”.
For the IT Professional Needing Reliability: “Go with Ahamo. You get Docomo’s unbeatable network, a generous 20GB of data for a great price, and it includes 20GB of free international data roaming per month, which is perfect for trips back home to India. It’s a no-brainer”.
For Someone Who Wants Zero “Jhanjhat” (Hassle): “If you don’t want to deal with any complexity, stick with Sakura Mobile or Mobal. Yes, they’re a little more expensive in the long run, but their full English support and easy setup process are a lifesaver when you’re new and feeling overwhelmed. Sometimes, peace of mind is priceless, bhai”.

Part 3: The Final Piece of the Puzzle – Opening a Bank Account

Ghar mil gaya, phone chalu ho gaya… ab aati hai sabse zaroori cheez: Paisa! You need a Japanese bank account for almost everything – receiving your salary, paying rent and utilities, and just about any other official transaction. But just like everything else, banking here has its own set of rules.

The "6-Month Rule" and Other Hurdles

The biggest challenge you might face is the “6-month rule.” Many major banks, like MUFG and SMBC, will only let you open an account after you’ve lived in Japan for at least six months. This is a major roadblock for newcomers. Thankfully, some banks are more flexible, especially if you can show proof of employment in Japan.

Another unique Japanese thing is the Hanko (判子) or Inkan (印鑑), which is a personal seal or stamp used instead of a signature on official documents. While some modern, foreigner-friendly banks now accept a signature, many traditional banks still require a Hanko. You can get one made easily and cheaply, so it’s a good idea to have one.

Your Bank Account Toolkit – What You'll Need

Before you head to a bank, make sure you have your documents ready. Being prepared is key!

Residence Card (Zairyu Card): This is the most important document. It must show your current address.
Passport: For identity verification
Japanese Phone Number: Banks need a local number to contact you.
Proof of Address: While your Residence Card has your address, some banks may ask for extra proof, like a recent utility bill or a Residence Certificate (Juminhyo) from your local city office.
Personal Seal (Hanko): As mentioned, it’s best to have one ready.
Proof of Employment or School Enrollment: A student ID or a letter from your company can be very helpful, especially for getting around the 6-month rule.
Initial Deposit: Most banks don’t require a large deposit, and some, like Japan Post Bank, don’t require one at all. But it’s good to have a small amount of cash (e.g., ¥1,000) just in case.

Choosing Your Bank – The Best Options for Foreigners

Not all banks are created equal, especially for us gaijin. Here are some of the most recommended ones:

Japan Post Bank (Yucho Bank / ゆうちょ銀行): This is the number one choice for newcomers. Why? They don’t have the strict 6-month residency requirement, their ATM network is massive (you’ll find them in post offices everywhere), and the process is relatively simple. You can even start the application on their smartphone app, which has English support.
SBI Shinsei Bank (SBI新生銀行): Another very popular bank for foreigners. They offer great English support for online banking and customer service. You can often apply by mail or online, but they generally require you to have been in Japan for six months unless you are employed here.
SMBC Trust Bank (PRESTIA): A good option if you need strong English support and deal with multiple foreign currencies. However, be aware that they may charge a monthly account maintenance fee if your balance is low.
Online Banks (Rakuten Bank, Sony Bank, Seven Bank): If you’re comfortable with digital-only banking, these are excellent choices. Rakuten Bank and Sony Bank have English application processes. Sony Bank is great for personal use with low fees, while Seven Bank is convenient with ATMs in every 7-Eleven.

The Step-by-Step Process to Opening Your Account

Gather Your Documents: Double-check you have everything from the toolkit list above.
Choose Your Bank: Pick one from the foreigner-friendly list that best suits your needs.
Apply (In-person or Online):

In-person: This is the traditional way. Go to a branch (try to go early on a weekday, as they close at 3 p.m.), take a number, and tell the staff, “Koza o tsukuritai desu” (I want to open an account). They will give you the application forms for a standard savings account (futsū yokin).
Online/App: For banks like Japan Post, Shinsei, or Rakuten, you can start the process online or through their app. You’ll upload photos of your documents.

Verification and Approval: The bank will review your application. This can take anywhere from a few days to two weeks.
Receive Your Banking Kit: Your ATM card (kyasshu kādo) and sometimes a bank book (tsūchō) will be sent to your registered address by mail. You cannot receive them on the spot.

Akash's Pro-Tips for Banking

Break the Address-Phone-Bank Paradox: You need an address and phone number for a bank account, but you often need a bank account to get an apartment or phone plan. The solution: get a prepaid SIM first, which only requires your passport. Then, use that number to open an account at Japan Post Bank, which is lenient with newcomers.
The Name Game: Your name must be exactly the same on all your documents and applications. If you have a middle name on your passport, this can cause issues with Japanese forms. The easiest way is to register your name exactly as it appears on your Residence Card.
Bring a Friend: I can’t stress this enough. If your Japanese isn’t fluent, bringing a Japanese-speaking friend to the bank will make the in-person application process a thousand times smoother.

Welcome to Japan! You've Got This!

Moving to a new country, especially one as unique as Japan, is a huge adventure. It has its challenges, for sure. The rental process requires you to be over-prepared to prove you’re trustworthy, getting a SIM card has its own little paradox, and opening a bank account comes with its own rules. But as you can see, with the right information and a bit of planning, it’s all totally manageable. Remember that UR Housing is your best “jugaad” for renting, and the two-stage strategy for SIMs will make your transition smooth.

You’re not alone in this. Thousands of us have been through it. I hope this guide helps you start your new life here on the right foot. If you have more questions or want to share your own experiences, drop a comment below. Let’s help each other out! And don’t forget to subscribe to my channel for more vlogs on life in Japan! Jaane se pehle, like and share, dosto!.

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